Lesotho bears brunt

. . . as supply orders diminish

MOSA MAOENG

MASERU – Trade Minister Mokhethi Shelile says with many buyers reducing supply orders from global suppliers to control inventories and improve cash flows Lesotho factories suffer the consequence.

The minister was speaking during the Worldwide Responsible Accreditation Production (WRAP) training held for key industrial players including manufacturers, trade unions to mention a few which ran from 15 to 16 April.

Shelile indicated that the global economy context for textile and apparel industry continues to face a global slowdown which started in 2023 and continues in 2025 due to macroeconomic tensions such as inflation, geopolitical conditions, war in multiple regions, supply chain costs increase, over inventory and just recently the Trade War 2.0 from the US administration that has shocked the world’s supply chain with new tariffs.

He however mentioned that as a response, the buyers are adopting a more diverse sourcing base in response to continuous supply chain disruption.

“Therefore, our country needs to adapt and compete in order to survive these challenging market conditions. We need to be aware that we are in the middle of fierce competition to retain and expand our buyers with countries like Kenya, Madagascar, Ethiopia, Mauritius and Tanzania in the region, but moreover with gigantic manufacturers in China, Vietnam, Bangladesh and Central America, as they have robust factories, with high end technologies and skilled workers,” said the minister. 

He added that the textile and apparel industry remains one of the key sectors employing the highest number of people in the country’s private sector.

He said the sector employs more than 32,000 people and accounts for 92 percent of manufacturing jobs. He said the textile and apparel exporting industry in Lesotho is based on providing Cut Make and Trim (CMT) services to large importers, mainly in the United States and South Africa.

He emphasised, “We are striving very hard to convert our industry to Free On Board (FOB) – Full Package, which is the incorporation of additional production processes and value addition including design, apparel fabric development and textile (yam, knitting and dying) vertical integration,”

Competitiveness and Financial Inclusion (CAFI) Project Manager Chaba Mokuku indicated that Lesotho is vulnerable to shocks and disasters noting since 2015 the country has experienced a series of shocks and disasters primarily climate related change.

He noted that these multiple disasters have impacted negatively on the economy of the country and have actually perpetuated poverty.

He said since 2015, Lesotho’s Foreign Direct Investment (FDI) at the percentage of the GDP has been declining noting that FDI has also been declining. He said all these was compounded by the Covid-19 pandemic where some businesses shut down and employees faced retrenchment. He added that another shock is that of the introduction of the reciprocal tariffs which has sent shock across the world with Lesotho most hard hit on the continent.

Mokuku noted that, “We have a big challenge of the economic trajectory not sustainable, with the wage bill higher across the Sub-Saharan and there is need to build our private sector, creating employment.”

He said there is need to provide technical assistance to the entire textile and clothing industry working with the Lesotho National Development Corporation (LNDC) as an implementing agency.

He noted that CAFI is ready to support government to build a coherent environment textile and clothing ecosystem that creates sustainable jobs. He said pre Covid, employment numbers was about 52, 000, post Covid currently the number has dropped around 32, 000 and there is a need to pull the number by implementing aggressive reforms.

While giving a thorough explanation of the workshop, WRAP Head of Operations for the Middle East and Africa Bart Seliger mentioned that the purpose was to teach local factories and businesses about social compliance.

This year’s workshop served as a follow-up on a sensitization workshop held in June 11-12, to sensitise industrial players which have an important role in the textile industry on the importance of social, environmental and industrial compliance to reach international markets.

WRAP is an independent, objective, non-profit team of global social compliance experts dedicated to promoting safe, lawful, humane and ethical manufacturing around the world through certification and education.