This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 2/22/2017

Overview                                                                                                                                 

According to the Ministry of Labor Inspectorate and Better Work Lesotho, Lesotho’s manufacturing sector is free from child labor. Employers generally respect national and international basic worker rights.        

Lesotho has taken advantage of AGOA to become one of the largest exporters of garments to the United States from sub-Saharan Africa. Exports are estimated to have totaled $288.9 million in 2014, and the sector employs approximately 41,014 workers. Apparel exports to the South African market are growing as a result of Lesotho’s strategy to diversify the manufacturing sector. Of the 41 factories in the textile and garments sector, 20 are producing for the South African market. Textile exports into South Africa account for 30% of total apparel exports in volume terms. With one exception, the factories import all the raw materials they use to make garments, which means opportunities exist for other upstream industries. Beyond the U.S. market, Lesotho’s products enjoy duty free access to SACU and SADC countries, which have a total population of 277 million. U.S. companies can set up manufacturing operations in Lesotho to produce for these regional markets.
 
With the growth of the apparel industry, companies have begun manufacturing other labor-intensive products in Lesotho, such as car seat covers, clean cookstoves, and circuit breaker switches. There are also opportunities to manufacture electronics and automotive components.
 
The LNDC offers comprehensive incentives packages for manufacturing companies. For information on an incentives package for investors, go to: http://www.lndc.org.ls/incentives/default.php
 
Manufacturing Sub-Sector Best Prospects       
  • Electronics
  • Automotive components
  • Other labor intensive manufacturing 
Opportunities                                                                 
The LNDC is seeking investors for a knit fabric mill in Lesotho. There is a huge demand for knit fabrics in Lesotho and surrounding SADC member countries. In 2009, Southern Africa imported $170 million worth of knit fabrics from China; Lesotho imported $51 million in knit fabric. In the same period, 60% of Lesotho’s apparel exports were knit garments. In 2012, Lesotho imported approximately $102 million in knit fabric from China and 54 % of the AGOA apparel exports were knitted garments. There are also opportunities for other upstream manufacturing for the garments sector, such as zippers, buttons, thread, etc.
 
As Lesotho looks for ways to diversify its industry base outside textile manufacturing, U.S. manufacturers could find opportunities in the manufacturing of electronics, automotive components, cosmetics, plastics, food processing, and other labor intensive manufacturing. 

Web Resources                  

Lesotho National Development Corporation: http://www.lndc.org.ls

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