Lesotho: Stitching Lesotho into the Global Economy

What the report says

AllAfrica, carrying a Bird Story Agency report by Lerato Matheka dated 23 July 2026, examines how Lesotho built a major garment-export industry from the early 2000s by pairing U.S. market access under the African Growth and Opportunity Act with tightly coordinated government and private-sector action. The report centers on weekly Ministry of Trade and Industries meetings that brought together officials, utilities, immigration authorities, banks, factory owners and unions to resolve obstacles facing factories.

Former trade minister Mpho Malie told the publisher that AGOA opened the door, but Lesotho’s institutions created the operating system investors needed. The sector expanded from about 17,000 to around 54,000 workers, according to Malie, and attracted manufacturers including Taiwanese investors. The article says one notable achievement was securing a US$100 million denim investment despite regional competition.

The report highlights the role of women workers, including Tokelo Thabane, Marethabile Qhooa and Somafi Nyofane, whose factory jobs helped support families despite modest pay. It notes research by Anandita Dhaka of University College London that found textiles contributed about 19.2% of GDP by 2020 and, at peak strength, made up roughly 60% of Lesotho’s exports. Manufacturing remains the country’s largest formal employer.

The industry is now under pressure from post-pandemic restructuring, weaker demand, factory closures and uncertainty around trade preferences. The Lesotho National Development Corporation said employment in assisted manufacturing companies fell from 51,325 in 2020 to 34,151 in 2024. LNDC’s Tiisetso Moremoholo said the next task is to deepen domestic production capacity, diversify exports and move Lesotho higher in regional and global value chains.