Lehlohonolo Motšoari
The interim Chief Executive Officer of the Lesotho National Development Corporation (LNDC), Advocate Molise Ramaili, has revealed that job losses due to the COVID-19 pandemic forced Lesotho’s textile industry to seek alternative markets to sustain employment for Basotho.
Traditionally, most of Lesotho’s textile factories rely on the Africa Growth and Opportunity Act (AGOA) to export products to the United States. However, the pandemic posed significant challenges as American buyers began sourcing from nearby countries to reduce shipping costs.
Speaking at the recent re-opening of the CGM factory in Thetsane Industrial Area, Ramaili explained the hurdles the industry faced, particularly the increase in cargo tariffs post-pandemic.
“Buyers opted to purchase from nearby countries due to high tariffs and the need for faster supply,” he said.
To address these challenges, the LNDC sought new market opportunities in neighboring South Africa, ensuring that textile manufacturers could still access a viable market.
“Together with CGM and Presetex management, we approached The Foschini Group (TFG) and committed to delivering on time, which is crucial for maintaining credibility with buyers,” Ramaili added.
He also commended the partnership with key stakeholders, such as the Revenue Services Lesotho (RSL), for supporting efforts to revive the textile industry.
“We are collaborating with RSL to tackle tax-related challenges and attract foreign direct investment, aiming to create enterprises that will generate jobs for Basotho.”
The Minister of Trade and Industry, Mokhethi Shelile, who also attended the event, highlighted the government’s commitment to creating jobs through the “#Re Bula Lifeme” campaign in collaboration with the LNDC.
“We hope that reopening these factories will reduce the mistreatment of Basotho workers in foreign factories, such as those in Newcastle, South Africa, by bringing these opportunities back home,” Shelile said.
He announced that CGM factory will initially employ 300 workers, with plans to increase that number to 1,000 over the next six months. “Our goal is to open more factories each month over the next three months,” he added.
Euginia Chang, CGM shareholder and director, emphasised the complexity of their production, which includes manufacturing heavy-duty jeans.
“We now have a production line making four different styles at once, which is a significant shift from how we operated before,” Chang said.
As CGM aims to establish itself as a fashion hub in Africa, this initiative marks a crucial step in mitigating Lesotho’s high unemployment rate and revitalising the country’s textile industry.
