. . . as US pledges a year’s extension
Hopolang Mokhopi
LESOTHO will secure at least a year’s extension of the African Growth and Opportunity Act (AGOA) following intense negotiations with the United States (US).
The 11th hour extension comes as the expiry of the AGOA agreement at the end of this month draws closer.
Lesotho has benefited significantly from AGOA, particularly in the textile and apparel sector, gaining preferential duty-free access to the US market.
That access has driven economic growth and guaranteed tens of thousands of jobs over the past two decades.
Minister of Trade, Industry and Business Development, Mokhethi Shelile, confirmed that the US has assured Lesotho of an extension of AGOA, initially scheduled to lapse next Tuesday.
Mr Shelile was part of the high-level Lesotho delegation that visited the US last week to negotiate and safeguard the agreement.
The delegation included Ministers of Labour and Employment, Tšeliso Mokhosi, Finance and Development Planning, Retŝelisitsoe Matlanyane, officials from the Ministry of Foreign Affairs and International Relations and representatives of the Lesotho Textile Exporters Association.
Speaking at a press conference at the Ministry of Trade’s headquarters yesterday, Mr Shelile said the assurance from the US followed lobbying efforts by the delegation in Washington, D.C.
While he welcomed the projected one-year extension, he reminded the nation that Lesotho had previously enjoyed long-term, duty-free trade since AGOA’s inception in 2000.
The contract was later extended for 10 years, from 2015 to 2025, and is now expected to be stretched by another year, pending Congress’ decision in November.
“We went to the United States to make our case on why Lesotho still needs AGOA,” Mr Shelile said.
“The discussions were positive, and we were assured that the extension will be considered by Congress in November.”
But he said the anticipated one-year extension would come with new requirements.
“One of the conditions is that our factories must give priority to American orders. This is understandable, but it also means we must work harder to diversify our markets,” he said.
The Minister emphasised that while AGOA has been crucial for Lesotho’s textile sector, the country cannot rely on a single market.
“We must not put all our eggs in one basket. I encourage our entrepreneurs to explore opportunities in Europe, Asia, and within Africa itself. This is the only way to secure long-term stability.”
Mr Shelile also highlighted recent improvements in trade conditions, saying the reduction of tariff rates from 50 percent to 15 percent has brought fresh optimism to the industry.
“This adjustment has already led to many factories recalling workers who were previously sent home, which is a sign that confidence is returning.”
Mr Mokhosi said the possible extension would bring relief to workers.
“Most of our people rely on the textile industry to support their families. This extension, even if it is short-term, gives us breathing space while we prepare for the future,” he said.
The expected extension is seen as a lifeline for Lesotho’s economy, buying time for government and industry to chart a more sustainable trade path.
AGOA has been a cornerstone of Lesotho’s economic partnership with the US since 2000, enabling duty-free access, attracting investment, and creating approximately 40,000 textile jobs at its peak.
The Act facilitates duty-free access for over 1800 products from eligible sub-Saharan African countries, including Lesotho, into the US market. In 2015, the US Congress extended AGOA to September 2025, granting Lesotho and other beneficiaries a decade of preferential trade.
However, this progress was disrupted earlier this year when US President Donald Trump, under a state of emergency declared in April, introduced tariffs that suspended several trade laws, including AGOA.
The looming expiry of AGOA coincides with this controversial imposition of steep reciprocal tariffs earlier this year, when US authorities raised duties on Lesotho exports to 50 percent, though this was later reduced to 15 percent. The tariff threatens to annihilate Lesotho’s already fragile economy, particularly the textile industry, where up to 12,000 jobs are at risk.
Local factories exporting to the US have already scaled down operations while many others have implemented rotational schedules, where workers report for duty only two weeks in a month. Factory owners have warned that unless the trade tariff is reduced to 10 percent, they will be forced to shut down, as Lesotho’s textiles cannot compete with similar products from countries like Kenya, which pays only 10 percent and has other logistical comparative advantages.
