Matekane speaks on new partnership for US cotton to Lesotho

Lesotho is set to deepen its participation in the global textile value chain after American cotton farmers entered into a partnership with textile manufacturers in Lesotho, Kenya and Mauritius.

The development was announced by Prime Minister Samuel Ntsokoane Matekane during a media briefing at State House on 30 September 2026, following the official opening of the Trans-Atlantic Cotton Partnership.

Matekane said the partnership marks the beginning of structured cooperation between American cotton producers and textile and garment manufacturers in the three African countries.

“Under this partnership, American farmers will grow cotton and export it to these countries, where it will be spun and processed before being used by factories to manufacture garments that will then be exported to the American market,” Matekane said.

He said the arrangement would see garments manufactured in Lesotho using American-grown cotton and subsequently sold in the United States.

“This means that clothes will be manufactured in Lesotho using American cotton and sold in the United States,” he said.

Matekane described the partnership as an opportunity for the participating countries to leverage their existing industrial capabilities while strengthening trade links between Africa and the United States.

The Lesotho National Development Corporation (LNDC) also participated in the launch of the partnership in Manhattan, New York, reaffirming Lesotho’s interest in strategic trade and investment arrangements aimed at industrialisation, job creation and sustainable economic growth.

According to the LNDC, the partnership brings together American cotton producers and African manufacturers with the potential to expand textile value chains, attract investment and strengthen industrial capacity.

“For Lesotho, this presents an opportunity to build on our established export-oriented garment industry and move further up the value chain through investment in spinning, weaving, knitting, dyeing and fabric production,” LNDC said.

The corporation said the initiative is closely aligned with its recently launched Letsema Strategy, which seeks to mobilise stakeholders around investment and trade, attract private capital and develop resilient value chains in strategic sectors.

“From cotton production to manufacturing and global markets, partnerships such as these demonstrate what is possible when businesses, governments and development partners work together,” LNDC said.

The partnership follows negotiations that began in July 2026, when discussions between the LNDC and the US-Africa Trade Desk (USATD) explored a commercial arrangement under which American-grown cotton would be supplied to Lesotho’s textile manufacturers.

The proposed model envisaged American cotton being shipped to Lesotho, processed locally and ultimately transformed into denim garments destined for major US retailers.

For Lesotho, the significance of the arrangement lies in its potential to move the country’s textile industry beyond its longstanding Cut-Make-Trim (CMT) model.

Under the CMT system, factories, many of them foreign-owned, generally import fabrics, patterns and accessories before Basotho workers assemble garments for export, particularly to the US market.

While the model has supported thousands of jobs over the years, it has also limited the amount of value that remains within Lesotho, with much of the upstream textile production taking place outside the country.

The proposed cotton partnership could therefore create opportunities for Lesotho to develop additional stages of textile production, including spinning, weaving, knitting, dyeing and fabric manufacturing.

This would potentially increase domestic value addition while creating opportunities for new investment and industrial skills development.

The initiative also comes against the backdrop of Lesotho’s longstanding access to the US market under the African Growth and Opportunity Act (AGOA).

AGOA has provided preferential market access for eligible African exports to the United States and has played an important role in supporting Lesotho’s garment industry.

The emerging cotton arrangement, however, could add a commercial dimension to the relationship by linking American agricultural production directly with African manufacturing capacity and the US consumer market.

For Lesotho, the focus will now be on translating the partnership into concrete investment in local textile infrastructure and expanding the country’s role beyond garment assembly.

LNDC said the partnership demonstrates the potential of coordinated action between governments, businesses and development partners to build a more diversified industrial economy.

“Through Letsema, we are steadily building the foundations for a more competitive and diversified industrial economy,” the corporation said.

Seabata Mahao

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.