Lesotho’s garment industrys

Lesotho’s garment industrys

Lesotho’s garment industry has been a cornerstone of its economy for over two decades, largely propelled by the U.S. African Growth and Opportunity Act (AGOA), which granted duty‑free access to American markets. With a population of just 2.3 million, the country became the largest Sub‑Saharan African exporter of garments to the U.S., supplying major brands like Levi’s, Nike, Foot Locker, Walmart, and even Trump‑branded golf shirts . This sector offers hope in a country beleaguered by high youth unemployment (39%) and limited domestic industry .

At its peak, Lesotho’s apparel exports reached approximately US $487 million in 2008; employment topped 50,000, primarily women . Even after slight declines during COVID-19, around 34,000–45,000 people remained employed in manufacturing by late 2022 . Garment factories also became hubs for broader social interventions: the Apparel Lesotho Alliance to Fight AIDS (ALAFA) delivers HIV prevention and treatment to over 40,000 mostly female workers, addressing a national HIV prevalence that reaches nearly 43% among employees .

Despite these gains, the industry has long faced structural weaknesses. Productivity remains low, infrastructure—especially roads and electricity—is poor, and landlocked logistics via South Africa pose costs . These factors, compounded by supply chain disruptions and rising operational costs, contributed to a loss of around 16,000 jobs between 2018 and 2024—nearly 5,000 of those lost between March 2023 and 2024 alone .

By early 2025, the industry faced its most existential threat yet. Under President Trump’s “reciprocal tariff” policy targeting countries with trade surpluses, Lesotho was slapped with a 50% U.S. tariff—on top of a 10% baseline—designed to pressure governments into negotiating . Although this additional duty was temporarily suspended for 90 days to allow talks, American buyers quickly froze orders out of fear and uncertainty .

High-profile employers—including Precious Garments, Maseru E‑Textiles, Leo Garments, Lucky Manufacturing, Kerasemese Ltd.—announced production halts, threatening 5,000–20,000 jobs . Union representatives report factory closures lasting at least three months, with potential permanent shutdowns if no resolution is reached by July–September 2025 . Workers—many sole breadwinners—are facing unpaid leave, lay-offs, and uncertain futures .

The crisis underscores Lesotho’s overdependence on the U.S. market, with 75% of exports destined there, and limited diversification . In response, the government has engaged U.S. officials, sought to fast‑track licenses for new investments, and is exploring expanded production for South African and regional SADC markets . However, internal challenges—such as weak infrastructure, inadequate VAT refund systems, and labor hardships—compound the difficulty of pivoting .

Looking ahead, Lesotho must balance immediate crisis management with long-term resilience. Key strategies include:

1. Diversification of markets — tapping South Africa, SADC, and other African markets beyond the U.S. .

2. Upstream investment — developing a local knit‑fabric mill and supply‑chain components (buttons, thread, zippers) to reduce import dependence .

3. Ethical standards & certifications — scaling WRAP and ALAFA compliance to appeal to socially conscious buyers .

4. Infrastructure improvement — addressing logistics bottlenecks and electricity supply to boost competitiveness .

5. Social support and rights advocacy — strengthening unions, combating workplace abuses, extending maternity protections, and continuing HIV interventions .

In conclusion, the garment sector in Lesotho exemplifies both potential and peril. It remains vital—employing tens of thousands, empowering women, and exporting globally. But the 2025 tariff shock exposed over-reliance and fragility. Without swift trade diplomacy and accelerated reform, Lesotho may see factories shutter, jobs lost, and hard-won development gains reversed. A recalibrated, diversified approach may be its only path to sustainable resilience.