U.S. companies can seize this opportunity. As Lesotho looks for ways to diversify its industry base outside of textile manufacturing, U.S. manufacturers could find opportunities in the manufacturing of electronics, automotive components, cosmetics, plastics, food processing, and other labor-intensive manufacturing.
Should US companies invest in Lesotho?
Beyond the U.S. market, Lesotho¡¯s products enjoy duty free access to SACU and SADC countries, with a total population of 277 million. U.S. companies could capitalize on this opportunity by setting up manufacturing operations in Lesotho to produce for these regional markets.
Why is Lesotho a major exporter of textiles?
Lesotho has taken advantage of AGOA to become one of the largest exporters of garments to the United States from Sub-Saharan Africa. It is ranked number two in terms of value of goods exported under AGOA and number three in terms of volume of goods exported primarily in textiles. Exports reached $ 333.7 million in 2021.
What products are made in Lesotho?
With the growth of the apparel industry, companies have begun manufacturing other labor-intensive products in Lesotho, such as car seat covers, clean cookstoves, and circuit breaker switches. There are also opportunities to manufacture electronics and automotive components.