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Uncertainty over AGOA puts African apparel exports at risk

Lesotho’s economy is heavily reliant on its textile (& apparel) industry, which was largely built through AGOA incentives. The sector is the nation’s largest private employer, providing around **,*** jobs—most held by women—and accounts for approximately ** per cent of its manufacturing exports, according to Oxford Economics. Garments produced in Lesotho, including those for brands like Levi’s and Wrangler, represent a significant portion of exports to the US and contribute nearly ** per cent to the country’s GDP of just $* billion.

Last Thursday (July **), Lesotho declared a national state of disaster following a sharp rise in youth unemployment and factory layoffs directly linked to the new tariffs. Factory owners such as Kobeli, which has already let go of *** workers producing for the US market, warn of even more severe impacts if the trade restrictions continue.