Trade, Industry and Small Business Development Minister Mokhethi Shelile is optimistic over the possibility for the United States (U.S.) to renew the expiring African Growth and Opportunity Act (AGOA).
His confidence stems from a recent lobbying mission to Washington, D.C., where he led a Lesotho delegation from September 15 to 19 to press for the extension of AGOA, which is slated to expire on September 30, 2025.
During the mission, Shelile and Minister of Labour and Employment Tšeliso Mokhosi held high-level discussions with members of both the U.S. Congress and key private sector groups.
They met ten congressional representatives across the Republican and Democratic parties, and engaged with organisations including the American Apparel and Footwear Association (AAFA), the U.S. Chamber of Commerce, and the American Fashion Industry Association.
Their efforts focused especially on the House Ways and Means Committee and the Senate Finance Committee, critical bodies in any trade legislation.
Shelile acknowledged that the odds for renewal were slim, but he believes the shared interest on both sides enhances chances for success.
“The Americans seemed to have as much interest in the renewal of AGOA as us, so I am hopeful that they are going to do everything in their power to pass this,” Shelile said following his U.S. trip.
“They assured us that they will give us the feedback once it is done by October or November by Congress. This is because usually, AGOA is passed together with the budget but the Trump Administration has decided that the USA budget pass alone then the rest will pass accordingly,” he added.
He further highlighted the importance of the agreement for Lesotho’s export sector.
“Due to the fact that we are under AGOA, if it is renewed we will trade with USA under the 15 percent tariffs which our local investors in the textile industries have accepted and this is shown by their expansion call of their employees who were laid-off.”
“This adjustment has already led to many factories recalling workers who were previously sent home, which is a sign that confidence is returning.”
Shelile warned that if renewal does not happen by November, the U.S. could impose more punitive measures.
“If AGOA is not renewed by November, the Americans might decide to lift the 15 percent import tariffs ‘reciprocal tariffs’ and impose the most Favoured Nations’ Rates which are 16 percent because we export materials made from cotton which we do not buy from the USA,” he cautioned.
Shelile indicated his delegation is pushing for at least a year’s extension, leveraging intense lobbying and highlighting the mutual benefits of the arrangement.
“We also reminded them that AGOA trade is the one of the few remaining links between Lesotho and the USA so it will be of great beneficial to both of the countries to reconsider. In as much as it benefits Basotho through employment and job creation it also benefits the USA with the direct and indirect jobs,” he clarified.
AGOA has been a cornerstone of Lesotho’s economic strategy for two decades, enabling duty-free access for more than 1,800 products from qualifying sub-Saharan countries to the U.S. market. Since its inception in 2000, the agreement has contributed significantly to export growth and employment. In 2015, Congress extended AGOA for another decade (to September 2025), and the current push seeks to secure further continuity.
Shelile welcomed the likely one-year extension but warned that renewal will come with stricter conditions.
“One of the conditions is that our factories must give priority to American orders. This is understandable, but it also means we must work harder to diversify our markets,” he noted.
He stressed that Lesotho cannot afford to depend solely on the U.S market.
“We must not put all our eggs in one basket. I encourage our entrepreneurs to explore opportunities in Europe, Asia, and within Africa itself. This is the only way to secure long term stability.”
In fact, he pointed out, the recent tariff reduction from 50 percent to 15 percent has renewed some optimism in the local industry.
Despite that reduction, though, the textile sector faces ongoing challenges. Lesotho’s textile industry remains under severe pressure despite a reduction in U.S. tariffs from a threatened 50 percent to 15 percent.”
The textile sector is Lesotho’s largest private employer, and accounts for majority of the country’s manufacturing exports. Many factories scaled back operations or laid off workers when the higher tariffs were threatened.
For Lesotho, the stakes could not be higher. The textile industry directly supports tens of thousands of jobs, many of them held by women, and indirectly underpins sectors ranging from transport to housing. The threat of tariff escalation, factory shutdowns, and lost orders has already forced producers to cut shifts and rotate schedules. Some industry voices warn that unless tariffs drop further, to around 10 percent, factories may shut down altogether, unable to compete with rivals in countries like Kenya, where import duties remain lower.
Summary
- “The Americans seemed to have as much interest in the renewal of AGOA as us, so I am hopeful that they are going to do everything in their power to pass this,” Shelile said following his U.
- “Due to the fact that we are under AGOA, if it is renewed we will trade with USA under the 15 percent tariffs which our local investors in the textile industries have accepted and this is shown by their expansion call of their employees who were laid-off.
- “We also reminded them that AGOA trade is the one of the few remaining links between Lesotho and the USA so it will be of great beneficial to both of the countries to reconsider.
Seabata Mahao is a general news reporter with special focus on Business and Sports. Started working at Newsday in 2021. Working in a team with a shared goal is what I enjoy most and that gives me the motivation to work under any environment leading to growth.
