MASERU – Trade and Industry Minister, Mokhethi Shelile, says the textile and apparel industry continues to face a global slowdown which began in 2023.
The situation has continued to worsen in 2025 due to inflation, geopolitical conditions, war in multiple regions, supply chain costs increase, over inventory and just recently the Trade War 2.0 from the US administration that has shaken the world’s supply chain with new tariffs, Shelile said.
The minister was speaking at a Worldwide Responsible Accredited Production (WRAP) technical workshop held in Maseru on Tuesday.
The workshop was organized by the Competitiveness and Financial Inclusion (CAFI) project.
Shelile said buyers are reducing supply orders from global suppliers to control inventories and improve cash flows, which has also affected some Lesotho factories.
As a response, the buyers are adopting a more diverse sourcing base in response to continuous supply chain disruptions.
Faced with this economic hardship, Shelile said the country needs to adapt and compete in order to survive these challenging market conditions.
He said the country needs to be aware that it is in the middle of fierce competition to retain and expand its buyers against countries like Kenya, Madagascar, Ethiopia, Mauritius and Tanzania.
“May the textile and garments sector experience elevation,” Shelile said.
He said the country should also compete with giant manufacturers in China, Vietnam, Bangladesh and Central America as they have robust factories with better technologies and skilled workers.
For this purpose, the Lesotho National Development Corporation (LNDC) has been interacting with the WRAP management team to explain the challenges the industry faces, as well as the firm’s commitment to backing Environmental, Social and Governance (ESG) and Gender Based Violence in Production (GBV) principles, and the need to enhance the industry with the support of the government of Lesotho.
“The government remains steadfast in its support for initiatives that promote industry standards and ethical practices,” Shelile said.
He said they recognise that the future of the country’s economy hinges on the ability to produce high-quality goods while maintaining a commitment to social and environmental responsibility.
As such, they will continue to invest in training programmes, support industries in achieving global certifications, and foster an environment where ethical business practices can thrive.
Shelile said they will have to build a shared road-map to improve the entire value chain manufacturing ecosystem to provide decent jobs for their people.
This, he said, would help to attract more investors to Lesotho and more orders in the international markets as these are the key factors to maintain and increase jobs in our country.
CAFI’s project manager, Chaba Mokuku, said Lesotho is vulnerable to climate-related shocks and disasters which impact negatively on the economy.
He said the country has to change the way it does business by engaging the private sector.
“We need to create employment in the private sector,” Mokuku said.
“There should be a strong collaboration between the government and the private sector,” he added.
Vinay Saxena, WRAP Head Operations and Training Manager, said all facilities have to comply with the legal requirements and standards of their industry under local and national laws of the jurisdictions in which the facilities are doing business along with any applicable international laws.
He said this will cover all labour and employment laws of those jurisdictions as well as laws governing the conduct of business in general, including rules and standards of ethics dealing with corruption and transparency.
“WRAP will not certify a facility that does not have a well-defined fee reimbursement plan,” Saxena said.
“A facility must conduct due diligence on the work status of migrant worker applicants, foreign or domestic, prior to hiring them,” he said.
Saxena said there are emerging business risks on legal penalties that can arise by failing to comply with the governmental and industry guidelines.
Majara Molupe
