Lesotho hardest hit as new US tariffs rattle Africa

By AFP
April 3, 2025


Lesotho's clothing industry is the largest employer in the tiny kingdom which fears the impact of new sweeping US tariffs - Copyright AFP Daniel ROLAND

Julie BOURDIN

The small African kingdom of Lesotho feared the worst for its textile industry Thursday after US President Donald Trump imposed 50-percent tariffs on its imports, the highest for a single nation.

Other African countries hit with Trump’s “reciprocal tariffs” above the new baseline rate of 10 percent include Madagascar (47 percent), Mauritius (40 percent), Botswana (37 percent), Equatorial Guinea (30 percent) and South Africa (30 percent).

But the mountain kingdom, which the US administration says is among “the worst offenders” with high tariffs on US imports, will be particularly hard hit as it is reliant on exports of mostly textiles, including jeans.

While its government did not immediately react to the new tariffs, Lesotho Private Sector Foundation CEO Thabo Qhesi told AFP Thursday they meant that “the textile and apparel industry is going to die.”

The clothing industry is the largest employer in the tiny kingdom of around 2.3 million people, providing more than 35,000 workers, according to official data.

“Before the introduction of the reciprocal tariffs, investors enjoyed exporting goods to the US market duty-free,” Qhesi said.

“With the introduction of the 50-percent tariffs, Lesotho is no longer going to be lucrative for investors,” he said, adding the transport, retail and residential property sectors would also suffer.

At 47 percent, the tariffs are also high for Madagascar, which said Thursday it had approached the US embassy to “seek clarification and explore possibilities for adjusting these new tariff barriers”.

The government will “mobilise all diplomatic and commercial levers to obtain a review of these measures”, it said.

South African President Cyril Ramaphosa said Thursday the tariffs were “a barrier to trade and shared prosperity”.

They underscore the urgent need for “a new bilateral and mutually beneficial trade agreement”, he said. The United States is South Africa’s second-largest trading partner.

The country’s automotive sector will be among the hardest hit, with separate tariffs of 25 percent on foreign-made cars going into effect shortly after Trump’s late Wednesday proclamation.

Motor vehicles account for 22 percent of South Africa’s exports to the United States, worth $1.88 billion, according to government statistics.



– Diversifying trade –



South African Minister of Trade Parks Tau said the new global trade war would affect poorer countries most and “literally devastate” Lesotho.

“We now have to look amongst ourselves and say, within the customs union in Southern Africa, within the Southern African Development Community, and within the region of Africa, how we’re going to respond to these issues,” he told journalists.

“Diversifying our trade is going to be important… enhancing our work on the African continent and collaborating,” he said.

The new US tariffs will be “disruptive of global value chains, invite retaliation, ignite inflation, dampen world economic growth and prompt repricing of risks in financial markets”, said South Africa-based economics professor Raymond Parsons.

South Africa “must see what trade adjustments might be made to win concessions to ameliorate the situation”, Parsons said, adding Pretoria should “prudently seize the moment” to find alternative trading partners.

However, “everybody is going to look for new trading partners,” said South African economist Dawie Roodt. “Of course, we must try. But it’s going to be tough.”


Lesotho, Africa’s ‘kingdom in the sky’ jolted by Trump


By AFP
April 3, 2025


An aereal view of Lesotho's capital Maseru - Copyright AFP Jade GAO

US President Donald Trump in March ridiculed Lesotho as a place “nobody has ever heard of” and then this week hit the tiny African kingdom with the highest of his reciprocal trade tariffs for any single nation.

Here are some things to know about the country sometimes called the Switzerland of Africa because of its mountainous landscape.



– ‘Kingdom in the sky’ –



Completely surrounded by South Africa, Lesotho is the largest of only three enclaved states in the world, far bigger than San Marino and the Vatican City, both of which are within Italy.

At 30,355 square kilometres (11,720 square miles), it is about the same size as Belgium.

Its population is roughly 2.3 million, compared to Belgium’s nearly 12 million.

Lesotho is known for the beauty of its mountainous terrain and styles itself the “Kingdom in the Sky”.

More than 80 percent of the country sits 1,800 metres (5,900 feet) above sea level and it is home to southern Africa’s only ski resort.

The highest peak is Mount Thabana Ntlenyana, with an altitude of at 3,482 metres.

A constitutional monarchy, it is ruled by 61-year-old King Letsie III, who has no formal power. The government is led by a prime minister.

– Textile economy –



With a annual gross domestic product of just over $2 billion, Lesotho is largely dependent on South Africa — it biggest trading partner — from which it imports most of its food, selling water in return.

The economy is heavily reliant on textile exports bound for the United States through the African Growth and Opportunity Act (AGOA) trade deal which provides duty-free access to the US market for some African products.

Its traditional Basotho blankets are a national symbol and renowned for their vibrant patterns and woollen warmth. They are often loaded with meaning, from celebrating life and nationality, to fertility and royalty, peace, love and courage.

Lesotho ranks among the world’s poorest countries despite huge mineral reserves.

British mine company Gem Diamonds said in 2018 it had discovered a 910-carat stone in one of its several Lesotho diamond mines.

The country also pioneered the growing of cannabis for medical use in Africa.

Unemployment has remained stubbornly high, hitting nearly 25 percent in 2023, according to the World Bank.



– Royal row –



A charity co-founded by Prince Harry in Lesotho to help people living with HIV ran into turbulence this month after a bitter boardroom row led King Charles III’s younger son to step down as patron.

Its Zimbabwe-born chairperson, Sophie Chandauka, publicly accused the prince of “bullying” and being involved in a “cover up”, accusations the former royal has dismissed as lies.

Harry founded the charity in 2006 with Prince Seeiso of Lesotho, before it expanded to Botswana.

The name, Sentebale, is a tribute to his mother, Princess Diana, who died in a Paris car crash in 1997 when he was just 12.



– HIV pandemic –



At least one in four adults in Lesotho is infected with HIV, in one of the highest rates in the world.

More than 230,000 people were receiving anti-retroviral treatment in 2021, according to the World Health Organization.

In 2020, the country achieved the UN’s “90-90-90” goal of 90 percent of people with the virus being diagnosed, on treatment and achieving viral suppression.

The country also has the second-highest incidence of TB in the world, estimated at 724 cases per 100,000 people.