Lesotho has declared a national state of disaster as the country reels from soaring youth unemployment and the fallout from suspended US trade tariffs, which have battered its key textile industry.
The announcement was made by Deputy Prime Minister Nthomeng Majara, who said the declaration would remain in effect until June 30, 2027. The move, under Lesotho’s Disaster Management Act, grants the government emergency powers to mitigate economic and social instability.
The textile-reliant kingdom was among the hardest hit when former US President Donald Trump announced new tariffs earlier this year, including a 10% levy and a proposed 50% hike on Lesotho’s exports — the steepest applied to any country. Though the higher tariff has been paused, the uncertainty has stalled US orders and deepened an already dire jobs crisis.
Youth unemployment in Lesotho hovers around 50%, while overall unemployment is near 30%, according to government data.
Lesotho had been a major beneficiary of the African Growth and Opportunity Act (Agoa), which gave it duty-free access to US markets. In 2024, trade between the two countries reached $240 million, primarily from Lesotho’s textile and apparel exports.
But with Agoa set to expire in September and no clarity from Washington, tens of thousands of jobs are on the line. “US buyers are not placing orders because they don’t understand what is going to happen,” Trade Minister Mokhethi Shelile warned.
The country has also been affected by the wind-down of US foreign aid programs, including USAID and the President’s Emergency Plan for AIDS Relief (PEPFAR), compounding the economic pain.
Officials say up to 40,000 jobs could be lost if the Agoa trade pact is not renewed.