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Lesotho has declared a national state of disaster in response to soaring youth unemployment and job losses, as mounting uncertainty over US trade tariffs deepens the crisis in the textile-reliant nation.
The move comes after Lesotho was hit with a 50% tariff—higher than any other country—when former US President Donald Trump reintroduced trade barriers in April. Although the tariffs have since been paused, their impact continues to ripple through Lesotho’s fragile economy.
Deputy Prime Minister Nthomeng Majara said the state of disaster will remain in effect until 30 June 2027, giving authorities the legal framework to mobilize emergency resources under the Disaster Management Act.
Youth unemployment now stands at nearly 50%, while the overall jobless rate hovers around 30%. With more than two million citizens, Lesotho faces a stark economic future unless urgent interventions succeed.
In response, the government is rolling out measures aimed at economic recovery and youth empowerment, including scrapping business registration fees for small and medium-sized enterprises. Several departments have already begun reallocating resources toward job creation programmes.
For years, Lesotho was a major beneficiary of the US African Growth and Opportunity Act (Agoa), exporting nearly $240 million in textiles and garments to the US in 2024 alone. However, the Trump administration’s trade policies, including a 10% tariff and the threat of an additional 50%, have sent shockwaves through the sector.
Trade Minister Mokhethi Shelile recently told Moneyweb that US buyers are holding back orders due to uncertainty over Agoa’s renewal, which expires at the end of September. Up to 40,000 jobs could be lost if the agreement lapses.
The country has also been affected by the withdrawal of US development support, including key health initiatives under USAID and the President’s Emergency Plan for Aids Relief (Pepfar).
This is the second state of disaster declared in just over a year. Until March, Lesotho was under an eight-month emergency due to severe food insecurity, with some 700,000 Basotho facing extreme hunger amid prolonged drought.
As economic pressures mount and global uncertainty grows, officials warn that Lesotho is now in a race against time to prevent further social and economic collapse.
