Rethabile Pitso
THE government, textile manufacturers and trade unions have welcomed the two-year extension of the African Growth and Opportunity Act (AGOA), saying it provides much-needed relief to Lesotho’s export sector and thousands of workers dependent on the textile industry.
The United States has extended AGOA until 31 December 2028, following the signing into law of the HR 6500 bill by US President Donald Trump on 2 September 2026.
The extension means Lesotho’s eligible exports can continue entering the US market duty-free, providing relief to manufacturers who have faced uncertainty over tariffs and the future of the preferential trade arrangement.
In a statement issued this week, the Ministry of Trade, Industry and Business Development (MTIBD) said the extension would provide continued market access for Lesotho-origin exports to the US.
The ministry said the extension would effectively maintain duty-free access for products including textiles, apparel and fisheries products until 2028.
“The developments in the United States market bring reprieve on tariffs that were charged on Lesotho’s exports in the past months,” the ministry said.
It encouraged the private sector to take advantage of the opportunity while also diversifying its export products and markets.
The ministry said government would continue engaging the US directly and through Southern African Customs Union (SACU) mechanisms in pursuit of deeper trade integration and permanent market access for Lesotho’s exports.
The extension comes after months of uncertainty over the future of AGOA, which has been central to Lesotho’s textile industry since 2000.
Lesotho’s textile manufacturers have relied heavily on duty-free access to the US market, with the sector supporting thousands of jobs.
The programme came under renewed threat following the return of Mr Trump to the US presidency in 2024 and his administration’s push for sweeping tariffs on trading partners under its “America First” policy. AGOA was eventually extended earlier this year, to December, before the current two-year extension.
Lesotho Textile Exporters Association executive secretary, ‘Malikhabiso Majara, said the extension should, however, be viewed as a transition period rather than a return to the old AGOA arrangement.
“The renewal of AGOA for two years is simply a transitional exercise to enable our countries to complete trade negotiations with the US because Mr Trump has stressed the need for future trade deals to benefit America,” she said.
She said the two-year period would allow Lesotho and other beneficiary countries to negotiate reciprocal trade arrangements while keeping the US market open.
“It is now factual that AGOA will not return in the same form we used to know, considering the new requirements imposed by the new regime. But we are working towards having a package that is closely aligned to what we used to have,” Ms Majara said.
She said the uncertainty surrounding AGOA had exposed the need for Lesotho to become more competitive and diversify its markets rather than remain heavily dependent on one preferential arrangement.
Ms Majara said AGOA had enabled Lesotho to export millions of products to the US and supported large-scale employment, while other international markets generally demanded smaller volumes and higher-value products.
She called for stronger support for the textile and agro-processing sectors to create local value chains, particularly in agriculture.
“There are many benefits that Lesotho has not explored simply by overlooking our agricultural sector. We still export wool and mohair as raw industry products yet we can add value there,” she said.
She also pointed to opportunities in leather and high-fashion production, saying emerging local brands could target European markets if production capacity and market access were strengthened.
Meanwhile, Minister of Trade and Industry, Motlatsi Maqelepo, last week said Lesotho’s negotiations with the US were at an advanced stage, with the country exploring arrangements that would provide benefits to both sides.
He cited the possibility of importing American cotton, processing it into fabric in Lesotho and exporting finished products such as jeans back to the US.
“America produces cotton and we are in negotiations with it to see if we can import their cotton, have it processed in Lesotho to create fabric,” Mr Maqelepo said.
“There can be some jobs created along that line when we manufacture items such as jeans so that at the end of the day, the very products made from their cotton are exported back to the country.”
Independent Democratic Union of Lesotho General Secretary, May Rathakane, also welcomed the extension, saying workers were hopeful that orders and normal working hours would resume at textile factories.
“The extension has made us happy. I have received reports from employees stating that they are hopeful that the normal flow of orders will resume and that normal working hours will also resume,” he said.
He said workers who had been placed on short time because of declining orders were looking forward to returning to full shifts and salaries.
Mr Rathakane, however, urged the government to use the extension as an opportunity to explore other markets.
“Lesotho has about twelve market avenues to explore and we feel it was about time that we focus our energies on exploring all these other markets instead of waiting on just one,” he said.
He also called for a review of trade policies that he said restricted licence holders from trading in more than one market at a time.
Opposition parties have also expressed support for the extension, arguing that AGOA remains important to vulnerable communities dependent on the textile industry.
Speaking at a press conference yesterday, Basotho Action Party leader, Professor Nqosa Mahao, said despite political differences with the government, opposition parties recognised the consequences that the collapse of AGOA could have on workers and their families.
