Credited from: AFRICANEWS
Lesotho has declared a national state of disaster for two years to combat soaring unemployment exacerbated by US-imposed tariffs. The tariffs, reinstated by former President Donald Trump at a rate of 50% in April, have particularly affected the textile industry, a significant employer in the country. Deputy Prime Minister Nthomeng Majara announced that the state of disaster would remain valid until June 30, 2027, to allow for urgent measures to be taken against the economic downturn, according to BBC, AA, and Africa News.
The unemployment rate in Lesotho has escalated to 30%, with youth unemployment nearly hitting 50%, prompting critical governmental intervention. The textile sector, which generates a substantial portion of the country’s GDP, has seen massive job losses that threaten livelihoods. Majara noted that the state of disaster allows the government to mobilize resources effectively to mitigate this employment crisis and seek new avenues for investment, according to BBC and Africa News.
Previously, Lesotho benefited from favorable trade agreements like the African Growth and Opportunity Act (AGOA), which facilitated duty-free access to the US market for its textiles. However, following the increase in tariffs, exports dramatically dropped, impacting the economy severely. Current statistics indicate that Lesotho exported approximately $228 million worth of goods to the US in 2023, which comprises more than 10% of its GDP, according to AA and Africa News.