Best Prospect Industries – Manufacturing

Lesotho has taken advantage of AGOA to become one of the largest exporters of garments to the U.S. from sub-Saharan Africa. Exports are estimated to have totaled $374 million in 2008, down from $443 million in 2007 and a peak of $456 million in 2004. Although the sector is currently going through a rough patch due to the slowdown in demand from the U.S. and changes in the SACU Duty Credit Scheme, it is still the leading sector in the country in exports. The sector was expected to contract by 10% in production at the end of 2009. Approximately three quarters of factories are owned by Taiwanese investors, with Hong Kong, Singapore, and South African investors representing the remainder.

Best Prospects/Services

Products and services with immediate need or potential in Lesotho include:

Fabric, canning, bottling, packaging, manufacturing equipment, consumer electronics, leather goods, toys, plastics, and sporting goods.

Opportunities

Opportunities still exist to diversify the manufacturing sector. Currently, the focus has been mainly in the manufacturing of garments and textiles. Duty-free access to the U.S. market under the combined AGOA / GSP program now stands at approximately 7,000 product tariff lines. Some of these products – such as television parts – can be produced in Lesotho, especially because there is a television assembly plant already in the country.