Lesotho Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in lesotho, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Manufacturing
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The manufacturing sector is considered one of the best prospects in the industry sector for Lesotho. The major industries in the manufacturing sector include textiles, clothing, footwear, food, and beverages. The sector, however, is dominated by the textiles and apparel industries. According to the Ministry of Labor Inspectorate and Better Work Lesotho, Lesotho’s formal manufacturing sector is free from child labor. Some employers violate national and international basic worker rights, and mainly the right for workers to join unions. There are also reports of gender-based violence (GBV) and other types of abuse and harassment in many textile factories throughout the country. The labor unions, brands, human rights organizations, and factory owners have signed the “Lesotho Agreement” as a commitment to combat GBV and other forms of harassment and discrimination from textile factories. The GOKL has provided training and investigated cases of GBV in the sector. Human rights organizations have provided toll free lines for textile workers to report cases of GBV.  Solidarity Center in collaboration with Workers Watch have also provided trainings, which have resulted in dismissals and disciplinary hearings and ultimately a reduction in GBV incidents.  

Lesotho has taken advantage of AGOA to become one of the largest garments exporters to the United States from Sub-Saharan Africa. It is ranked number two in terms of value of goods exported under AGOA and number three in terms of volume of goods exported primarily in textiles; exports reached $237.3 million in 2024. The manufacturing sector is Lesotho’s second largest employer after the government. Employment fluctuated from 43,542 in February 2020 to 30,741 in April 2020 due to COVID-19, briefly rebounding to 45,261 in March 2021 before declining to 30,991 by December 2024. As U.S. market demand fell—forcing factory closures and downsizing—Lesotho has increasingly diversified into the South African market, which now accounts for 30 percent of apparel export volume. Most factories import raw materials, creating upstream opportunities for suppliers. Lesotho’s duty-free access to SACU, SADC (totaling 277 million consumers), and AGOA, alongside Africa’s $7 billion textile import market, offers U.S. investors strong prospects to establish manufacturing operations targeting both U.S. and 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 incentive packages for manufacturing companies. 
For more information on an incentive package for investors go to: https://www.lndc.org.ls/ 

Manufacturing Sub-Sector Best Prospects       

  • Textile and apparel
  • Electronics
  • Automotive components
  • Other labor-intensive manufacturing 

Opportunities           

The LNDC is seeking investors for a knit fabric mill in Lesotho, given the high demand for knit fabrics both domestically and in surrounding SADC countries. In 2019, Southern Africa imported $1.5 million in knit fabrics, while Lesotho alone imported $96 million. Additional upstream manufacturing opportunities exist in garment sector inputs such as zippers, buttons, and thread. The 2021 Lesotho AGOA Utilization Strategy identified manufacturing as a sector where Lesotho holds comparative advantage. U.S. companies can capitalize on these opportunities. Lesotho is currently in dire need of a washing facility, forcing local factories to rely on South African facilities, driving up costs and causing delivery delays. U.S. investors could establish washing facilities locally to address this gap. As Lesotho seeks to diversify beyond textiles, U.S. manufacturers may also find opportunities in electronics, automotive components, cosmetics, plastics, food processing, and other labor-intensive industries. 

Resources      

Lesotho National Development Corporation: https://www.lndc.org.ls/ 
Contacts
Lesotho National Development Corporations
P/Bag A96 
(266) 22322012

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