An estimated one-third of Lesotho's textile and clothing production will be decimated if the African Growth and Opportunity Act (AGOA) is not renewed in September. Lesotho is a small landlocked country entirely surrounded by South Africa. It is the largest sub-Saharan African garment exporter to the US, accounting for 30 percent by value and 28 per cent by volume of exports from the region to America. About 80 per cent of the country’s textile and garment exports are US-bound.

Before AGOA, the Lesotho textile and clothing industry employed around 20,000 people, with South Africa and Europe being the principal export markets. In the years following the establishment of AGOA in 2000, the focus shifted to US and employment in the sector rose to 55,000. This has fallen back to 44,000 since the abolition of the World Trade Organization’s multi fiber arrangement (MFA), which sparked more intense competition from Asia.

Lesotho is the jeans capital of Africa, producing 26 million pairs of denim jeans annually. It also makes 70 million knitted garments a year.

Currently around 75 per cent of the industry’s investment is from China, Taiwan and Southeast Asia. While the early days of AGOA saw the development of poor quality temporary businesses, MFA abolition saw many of those players eliminated.