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Home Business & Economy

Trump threatens Lesotho’s fragile economy

by Editorial Staff
1 year ago
in Business & Economy
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Key points:

  • Trump’s remarks spark economic concern in Lesotho
  • AGOA trade deal at risk, jeopardising key exports
  • Over 35,000 jobs hang in the balance

IN the bustling factories of Maseru, the heartbeat of Lesotho’s fragile economy reverberates through rows of sewing machines. But behind the rhythmic hum is growing unease. Thousands of workers in the tiny mountain kingdom now fear their livelihoods are under threat following controversial remarks by US President Donald Trump and uncertainty over a critical US trade deal.

During a recent defence of sweeping foreign aid cuts, Trump referred to Lesotho as ‘a country nobody has ever heard of’. As reported by AFP, the comment hit hard in a nation where over 35,000 workers depend on the textile industry — the country’s largest employer.

‘He thought we were useless’

‘It was insulting,’ said Motlatsi Marou, 33, a worker at Afri-Expo Textiles, as he ironed trousers in the humid factory. ‘He thought we were useless to him.’

Marou has held his role for two years — his longest run of consistent employment. His production manager, Malerai Snay Mosotho, also expressed dismay. ‘It made me feel bad because we are doing a lot of good work,’ she said.

Their company is one of many exporting jeans and sportswear to giants like Walmart and Mr Price, under the African Growth and Opportunity Act (AGOA) — a US trade policy allowing duty-free access to African textile exports.

Lesotho’s economic lifeline

Completely landlocked by South Africa, Lesotho is among the world’s few enclaved nations. Known as the ‘kingdom of the sky’, it leans heavily on exports — primarily garments — for its $2bn GDP.

AGOA, introduced in 2000, has been central to this model. Lesotho earned $167 million in non-oil exports to the US in 2023, making it one of the top African beneficiaries. But the deal is up for renewal this September, and experts say its future is unclear.

‘If AGOA is terminated, it will have an immediate impact,’ King Letsie III told AFP from his royal residence in Matsieng. ‘It could mean the loss of jobs for 30,000 to 40,000 people.’

‘A lot of uncertainty’

The fallout has already begun. According to the Lesotho National Development Corporation (LNDC), over 1,800 textile jobs were lost in 2024 alone due to reduced US demand.

‘There is still a lot of uncertainty around AGOA renewal with the new administration,’ said LNDC trade manager Malira Sekonyela.

For workers like 23-year-old Karabelo Magapalla, who earns just $10 a day, the stakes couldn’t be higher. ‘It’s stressing and depressing,’ she told AFP. She supports her grandmother — unlike colleagues who often provide for entire families.

Turning a crisis into a call for action

Teboho Kobeli, founder of Afri-Expo Textiles, called Trump’s statement a ‘wake-up call’. He urged African governments to enter AGOA renegotiations with strength and to seek new trade partners in Europe.

‘The era of being beggars, getting things for nothing, is over,’ Kobeli said.

On the streets of Maseru, defiance echoed. ‘Africa can survive without him,’ said Maleshoane Mokhaji, 57. ‘He can keep his dollars. We’ll keep our minerals. Period.’

Lesotho’s economy may be hanging by a thread, but its people are far from defeated. As AGOA’s future hangs in the balance, they are calling for dignity, recognition, and a better seat at the global table.

 

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Editorial Staff

Editorial Staff

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