"Lesotho: 5,000 Textile Jobs At Risk", 2 June 2025

LESOTHO's once-thriving textile industry...is now staring down a catastrophic barrel, with more than 5000 jobs hanging in the balance.

One of the country's textile giants, Lesotho Precious Garments (PTY) Ltd and its subsidiary, Maseru E-Textiles (PTY) Ltd, are preparing to shut down operations entirely due to a devastating new 50 percent tariff rate imposed by the United States...

Although the tariffs have been temporarily suspended for three months to allow for negotiations, American buyers have halted their orders, opting to wait for a definitive resolution.

Mr Trump's administration has made it clear that only countries able to secure favourable trade terms will be spared from the steep hikes. But so far, Lesotho has been unable to get a seat at the negotiation table...

The threat of a complete shutdown has sparked alarm among workers and unions. The workers representative, United Textiles Employees Union (UNITE)'s deputy general secretary, Potloloane Monare, confirmed this week that both Precious Garments and Maseru E-Textiles have already reached out to the union to discuss a possible three-month closure to begin with...

"...Many factories have already shut down, and others have reduced their workforce. The potential for further job losses is deeply alarming," said Mr Monare.

He highlighted the critical role played by Precious Garments, one of the largest textile producers in Lesotho.

"They receive a high volume of orders from the United States and often subcontract that work to smaller companies like their subsidiary Maseru E-Textiles, and others such as TZICC Clothing Manufacturers, Lucky Manufacturing. If Precious Garments shuts down, those smaller factories will also be forced to close."...

At the centre of this turmoil is the African Growth and Opportunity Act (AGOA)...that has...granted Lesotho and more than 30 other African countries duty-free access to American markets...

But that privileged status is now at risk. If the tariff suspension period expires at the end of next month and the 50 percent rate is reinstated, Lesotho's textile industry will all but collapse...

Currently, buyers are paying a 10 percent baseline tariff while the temporary suspension holds. However, many are unwilling to place new orders that could arrive just as the higher tariffs kick in, making them prohibitively expensive.

"The factories say clients are hesitant to send orders that might be caught up in the tariff hike. If this uncertainty continues, we are looking at mass factory closures."...