Maseru: A garment factory in Lesotho, known for producing Trump-branded golf shirts, faces potential closure due to substantial import tariffs imposed by the US government earlier this year. The factory's future hangs in the balance as these tariffs, initially announced in April, are expected to be reinstated this Friday, 1 August, unless a separate deal is reached.
According to BBC, Lesotho was subjected to "reciprocal" tariffs of 50%, the highest rate applied to any country. Although these tariffs have been temporarily paused, US President Donald Trump plans to reimpose them along with tariffs on other nations worldwide. The looming uncertainty surrounding the country's clothing industry has prompted Lesotho to declare a national "state of disaster" to expedite job creation.
Ms. Seleso, an embroiderer at Precious Garments for the past eight years, expresses concern over her job security due to the tariff situation. Workers have been informed that the factory could close at any moment, and currently, they are working only two weeks a month, earning half their usual pay. Supporting her family, including her child, mother, and two nieces, has become increasingly challenging for Ms. Seleso.
The BBC reached out to Precious Garments for comment, but Sam Mokhele, the secretary general of one of the unions representing workers at the firm, indicated that while the company has not shown signs of shutting down, it may need to if conditions do not improve.
Meanwhile, at Maseru's Thetsane industrial site, job seekers gather outside the closed CGM factory, hoping for employment opportunities. Among them is Puleng Selane, who has been searching for work since March. To support her family, she sells medical face masks, but the income barely covers basic necessities.
Although the 50% tariff has been paused, Lesotho's exports to the US still face a 10% tax, impacting the nation's economic landscape. The African Growth and Opportunity Act (Agoa), which previously allowed duty-free access to the US market, had been pivotal for Lesotho's textile industry, providing thousands of jobs. However, the tariffs have jeopardized this economic pillar.
With unemployment rates soaring, particularly among the youth, the situation is dire. Youth activist Tšolo Thakeli highlights the lack of job opportunities and criticizes the government's approach to tackling the crisis. Despite government assurances of addressing the issue, skepticism remains prevalent among the workforce.
Lesotho's Trade Minister, Mokhethi Shelile, insists the government is working to resolve the problem, emphasizing a shift towards production for the South African market. However, the uncertainty surrounding the Agoa agreement and tariff structures continues to cast doubt on the future of the garment industry.
For factories like TZICC, owned by a Taiwanese national, the halt in orders has resulted in layoffs, affecting over a thousand employees. The firm's manager, Rahila Omar, notes the challenges posed by the tariffs and the need for a resolution on Agoa to determine the next steps.
Despite the government's promises, the uncertainty continues to loom over workers like Ms. Seleso and Mr. Thakeli, leaving them apprehensive about the future of Lesotho's garment industry and its workforce.