John AdoyiThe government of Lesotho has declared a two-year national state of disaster as sweeping United States tariffs and aid cuts under President Donald Trump begin to take a heavy toll on the country’s fragile economy.
The declaration, made in line with the country’s Disaster Management Act, empowers the government to take all necessary measures to minimise the effects of disasters, including redirecting funds to support key recovery programmes.
Join our WhatsApp ChannelOfficials in Maseru, the country’s capital say the move will allow the state to channel emergency resources into initiatives focused on tackling rampant youth unemployment and reviving the economy.
Lesotho, a landlocked kingdom entirely surrounded by South Africa, was hit with a 50 per cent tariff by the United States in April. Although the tariff was later reduced to 10 per cent, the impact on the country’s export-driven industries has already been profound. The textile sector, which depends heavily on exports to the US, is the backbone of Lesotho’s manufacturing economy and is already struggling to cope.
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The future of the African Growth and Opportunity Act, AGOA, which gave Lesotho’s textile exports preferential access to US markets, now hangs in the balance. If AGOA is not renewed by September, more than 40,000 jobs in the sector could be lost overnight, according to government officials.
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The country’s unemployment rate currently stands at 30 percent, while youth unemployment is estimated at 48.8 percent. The government has warned of potential unrest if the situation does not improve soon.
Prime Minister Sam Matekane has called for a national shift in focus towards labour-intensive sectors and innovation, in a bid to create more jobs, particularly for young people and women.
“We are not only investing in traditional sectors but also embracing innovation and creativity. We aim to empower mostly women and young Basotho with meaningful jobs and entrepreneurial opportunities,” Matekane said in June.
Deputy Prime Minister Nthomeng Majara announced that the state of disaster will remain in force until 30 June 2027. This follows a separate state of disaster declared last year due to widespread food insecurity.
With growing uncertainty over global trade and domestic economic pressures mounting, Lesotho faces a critical period as it works to protect its economy and support its most vulnerable citizens.
