Lesotho has declared a national state of disaster due to escalating youth unemployment and rising job losses, as the country grapples with the economic fallout from recent US tariff changes.
Deputy Prime Minister Nthomeng Majara announced that the state of disaster—enacted under the Disaster Management Act—will remain in effect until 30 June 2027. The move allows the government to take urgent action to mitigate the crisis.
Unemployment in the landlocked southern African nation stands at 30%, with youth unemployment nearing 50%, according to official statistics.
The crisis has been worsened by uncertainty surrounding US trade policy. In April, former US President Donald Trump imposed tariffs—initially as high as 50%—on imports from Lesotho, making the country the hardest hit among African nations. Although the 50% hike has since been paused, the damage is already being felt.
Lesotho had previously been one of the leading beneficiaries of the African Growth and Opportunity Act (AGOA), a US trade programme that allows eligible African countries duty-free access to American markets. Lesotho’s economy—heavily reliant on textile and apparel exports—generated a large portion of its income through this preferential agreement.
In 2024 alone, Lesotho exported goods worth $240 million to the United States, mainly textiles. However, US buyers have reportedly pulled back on orders due to uncertainty over AGOA’s renewal, which expires at the end of September 2025.
Lesotho’s Trade Minister Mokhethi Shelile told Moneyweb that the lack of clarity has disrupted trade relations: “US buyers are not placing orders because they don’t understand what is going to happen.”
Adding to the strain, the US Agency for International Development (USAID) has scaled back its global programmes, including the President’s Emergency Plan for AIDS Relief (PEPFAR), which previously supported health and development in Lesotho.
The government now fears that up to 40,000 jobs could be lost if AGOA is not renewed, worsening an already dire employment crisis and threatening social stability in one of Africa’s smallest and most vulnerable economies.
