Latest news with #Lesotho
Yahoo
a day ago
- Business
- Yahoo
'How will we survive?' Lesotho factory that made Trump golf shirts hit hard by US tariffs
A garment factory in Lesotho, which has produced Trump-branded golf shirts, may have to soon shut down following the massive import taxes, or tariffs, imposed by the US government earlier this year. The small, southern African kingdom was hit with "reciprocal" tariffs of 50% - a higher rate than any other country - when they were announced by US President Donald Trump in April. Although they have since been put on hold, Trump says they will be reimposed this Friday, 1 August, along with other countries around the world, unless a separate deal is reached. "We don't know how we survive this one. We are going to die," Aletta Seleso tells the BBC in a bleak voice standing outside Precious Garments, where the Trump golf shirts have been made. The mother of one young child has worked there for almost a decade, also supporting her extended family on her monthly salary of $160 (£120). Lesotho has become known as the "denim capital of Africa". The country's garment factories also produce jeans for iconic American brands such as Levi's and Wrangler. But the uncertainty over the future of the country's clothes industry is one reason why Lesotho declared a national "state of disaster" earlier this month in order to speed up job-creation. The BBC meets Ms Seleso during her lunch break just outside Precious Garments. She joins hundreds of workers streaming out of the factory with their lunch boxes in one hand and water bottles in the other as they try to find a spot in the weak sun of the southern hemisphere winter to enjoy their home-cooked meals. Most workers, with blankets wrapped around their bodies, huddle in groups with their backs to the sun as they try to soak up a bit of warmth. She has been working at the factory as an embroiderer for the past eight years and had little reason to worry about her job - until the US tariffs announcement in April. She says workers have been told that the firm "can close any time from now". "They say it's about a tariff," she says. In the meantime, Ms Seleso and her colleagues have been told to work for two weeks a month, meaning they get just half the pay. She says it is now "so hard" for her to support her child, mother and her late younger sister's two children, who are all under her care. The BBC has approached Precious Garments for comment. But Sam Mokhele, the secretary general of one the unions representing 150 workers at the firm, says the company had not "indicated any sign of shutting down" at the moment. "But what they said was [they may have to] shut down if things do not change," he says. Ms Seleso is appealing to the government to engage with the US and try to find a viable solution to the tariff question. Despite her desperate situation, she at least still has an income – but others are not so fortunate. On the other side of town, in Maseru's Thetsane industrial site, dozens of desperate job seekers gather outside another garment factory, CGM. The factory, one half of the CGM Presitex Jeans Manufacturer, has closed but there have been rumours it may soon reopen. The would-be workers stand in small groups, clutching water bottles, their only source of sustenance for the day, as they listen and hope they will be among the lucky few. Among this group, mostly women, is Puleng Selane, who has been job-hunting since March. Since 2018, the mother of three has worked as a security guard, along with a variety of other jobs. The young woman now relies on the sale of medical face masks to support her family - which even on a good day only brings in enough money to buy maize meal and paraffin. "Now life is so hard... we often eat once a day but sometimes go to bed without any food," she says. Although the 50% tariff has been paused, Lesotho's exports to the US are still subject to a 10% tax, like the rest of the world. Until this year, its exports had not been subject to any US tariffs under the African Growth and Opportunity Act (Agoa) - a law passed in Washington in 2000 to allow duty-free access to the US for goods from some countries in order to alleviate poverty and create jobs. This was part of the "trade not aid" philosophy. Trump's tariffs could be death knell for US-Africa trade pact How jeans and diamonds pushed Lesotho to the top of Trump's tariffs list The textile and garment industry is Lesotho's largest private sector employer providing, at its peak, around 50,000 jobs, out of a population of just over two million. The figure now hovers around 36,000 according to the government, with 12,000 jobs directly affected by the US tariffs. Precious Garments at one point hired 4,000 workers. But the Lesotho textiles boom boosted by Agoa meant that it had a trade surplus with the US - exporting more than it imports from the country. And that was why Trump imposed such high tariffs on the country, which appear to have put an end to Agoa, threatening the future of the one bright spot in the country's economy. Despite the relative success of the clothes factories - until now - the country as a whole is still struggling to create enough jobs for its young population. Unemployment stands at 30% but for young people the rate is almost 50%, according to official figures. Youth activist Tšolo Thakeli tells the BBC that even without the latest threat to the textile sector, the situation is "tragic" as there are "literally no jobs in the country, especially for the youth". "We have graduates from every level... not having jobs. There's a serious state of hopelessness amongst the youth," he says. And while there are myriad reasons, Mr Thakeli blames the "nepotism [and] corruption" that many allege runs rampant in the country. The 31-year-old entrepreneur and qualified lawyer is a vocal critic of Lesotho's government and was arrested after he posted a video on social media questioning whether Prime Minister Sam Matekane's promise to create 70,000 jobs in two weeks was realistic. He tells the BBC the prime minister lacks a proper plan to tackle the crisis. "There's nothing tangible that the government has done or set to address the problem. [It's just] empty promises," he says. This is denied by Trade Minister Mokhethi Shelile, who insists that the government is working to try and resolve the issue. "We already had some solutions, even before the tariff was announced, because the US market was already beginning to be a difficult market for us," he tells the BBC. He says the country is "already shifting to production for South Africa" and that as things stand, only "20% of the garment industry supplies the US market". Mr Shelile is speaking to the BBC outside another factory hit hard by the uncertainty caused by the tariffs. TZICC, owned by a Taiwanese national, has been operational in Lesotho since 1999, producing sportswear for the likes of JC Penney, Walmart and Costco. At the height of operations, the firm produced 400,000 garments a month but when the BBC visits, hundreds of sewing machines lie gathering dust in one of the warehouses. A manager at the firm, Rahila Omar, says the company's 1,000 employees, mostly women, have been laid off for the next four months due to a halt in orders. "Because of the... pressure of the tariffs, our buyers wanted us to finish the order or the quantity as soon as we can. We were given a deadline of 30 June, but we finished before 30 June, and that's why we have a layoff," she says. Ms Omar says TZICC is waiting for an update on Agoa and whether the current tariff structure would be reviewed before deciding on the next step. Even if the current 10% tax remained, without Agoa, it would not be enough for the firm to reopen as there would be "some additional charges" to consider, she explains. And while the factory also supplies clothing to South African retailers, Ms Omar says the income generated from these pales in comparison to what the firm earns from the US market. Despite the government's assurance that it is working to resolve the issue - with the minister even promising a desperate passer-by who spotted him during our interview that "it's going to work [out] at the end of the day" - for Ms Seleso and Mr Thakeli, these are hollow words for the country's despondent and hopeless workforce. Find out more about Lesotho from the BBC: Nine things about Lesotho - the country 'nobody has ever heard of' Who benefits from Lesotho's 'white gold'? The small African country with the world's highest suicide rate Go to for more news from the African continent. Follow us on Twitter @BBCAfrica, on Facebook at BBC Africa or on Instagram at bbcafrica BBC Africa podcasts Focus on Africa This Is Africa
BBC News
a day ago
- Business
- BBC News
US tariffs: Lesotho factory that made Trump shirts hard hit by US tariffs
A garment factory in Lesotho, which has produced Trump-branded golf shirts, may have to soon shut down following the massive import taxes, or tariffs, imposed by the US government earlier this small, southern African kingdom was hit with "reciprocal" tariffs of 50% - a higher rate than any other country - when they were announced by US President Donald Trump in they have since been put on hold, Trump says they will be reimposed this Friday, 1 August, along with other countries around the world, unless a separate deal is reached."We don't know how we survive this one. We are going to die," Aletta Seleso tells the BBC in a bleak voice standing outside Precious Garments, where the Trump golf shirts have been mother of one young child has worked there for almost a decade, also supporting her extended family on her monthly salary of $160 (£120).Lesotho has become known as the "denim capital of Africa". The country's garment factories also produce jeans for iconic American brands such as Levi's and the uncertainty over the future of the country's clothes industry is one reason why Lesotho declared a national "state of disaster" earlier this month in order to speed up job-creation. The BBC meets Ms Seleso during her lunch break just outside Precious joins hundreds of workers streaming out of the factory with their lunch boxes in one hand and water bottles in the other as they try to find a spot in the weak sun of the southern hemisphere winter to enjoy their home-cooked workers, with blankets wrapped around their bodies, huddle in groups with their backs to the sun as they try to soak up a bit of has been working at the factory as an embroiderer for the past eight years and had little reason to worry about her job - until the US tariffs announcement in says workers have been told that the firm "can close any time from now"."They say it's about a tariff," she the meantime, Ms Seleso and her colleagues have been told to work for two weeks a month, meaning they get just half the says it is now "so hard" for her to support her child, mother and her late younger sister's two children, who are all under her BBC has approached Precious Garments for Sam Mokhele, the secretary general of one the unions representing 150 workers at the firm, says the company had not "indicated any sign of shutting down" at the moment."But what they said was [they may have to] shut down if things do not change," he Seleso is appealing to the government to engage with the US and try to find a viable solution to the tariff her desperate situation, she at least still has an income – but others are not so the other side of town, in Maseru's Thetsane industrial site, dozens of desperate job seekers gather outside another garment factory, factory, one half of the CGM Presitex Jeans Manufacturer, has closed but there have been rumours it may soon would-be workers stand in small groups, clutching water bottles, their only source of sustenance for the day, as they listen and hope they will be among the lucky few. Among this group, mostly women, is Puleng Selane, who has been job-hunting since March. Since 2018, the mother of three has worked as a security guard, along with a variety of other young woman now relies on the sale of medical face masks to support her family - which even on a good day only brings in enough money to buy maize meal and paraffin."Now life is so hard... we often eat once a day but sometimes go to bed without any food," she says. Although the 50% tariff has been paused, Lesotho's exports to the US are still subject to a 10% tax, like the rest of the this year, its exports had not been subject to any US tariffs under the African Growth and Opportunity Act (Agoa) - a law passed in Washington in 2000 to allow duty-free access to the US for goods from some countries in order to alleviate poverty and create jobs. This was part of the "trade not aid" tariffs could be death knell for US-Africa trade pactHow jeans and diamonds pushed Lesotho to the top of Trump's tariffs listThe textile and garment industry is Lesotho's largest private sector employer providing, at its peak, around 50,000 jobs, out of a population of just over two figure now hovers around 36,000 according to the government, with 12,000 jobs directly affected by the US Garments at one point hired 4,000 the Lesotho textiles boom boosted by Agoa meant that it had a trade surplus with the US - exporting more than it imports from the country. And that was why Trump imposed such high tariffs on the country, which appear to have put an end to Agoa, threatening the future of the one bright spot in the country's the relative success of the clothes factories - until now - the country as a whole is still struggling to create enough jobs for its young stands at 30% but for young people the rate is almost 50%, according to official activist Tšolo Thakeli tells the BBC that even without the latest threat to the textile sector, the situation is "tragic" as there are "literally no jobs in the country, especially for the youth"."We have graduates from every level... not having jobs. There's a serious state of hopelessness amongst the youth," he while there are myriad reasons, Mr Thakeli blames the "nepotism [and] corruption" that many allege runs rampant in the 31-year-old entrepreneur and qualified lawyer is a vocal critic of Lesotho's government and was arrested after he posted a video on social media questioning whether Prime Minister Sam Matekane's promise to create 70,000 jobs in two weeks was tells the BBC the prime minister lacks a proper plan to tackle the crisis."There's nothing tangible that the government has done or set to address the problem. [It's just] empty promises," he is denied by Trade Minister Mokhethi Shelile, who insists that the government is working to try and resolve the issue."We already had some solutions, even before the tariff was announced, because the US market was already beginning to be a difficult market for us," he tells the says the country is "already shifting to production for South Africa" and that as things stand, only "20% of the garment industry supplies the US market". Mr Shelile is speaking to the BBC outside another factory hit hard by the uncertainty caused by the tariffs. TZICC, owned by a Taiwanese national, has been operational in Lesotho since 1999, producing sportswear for the likes of JC Penney, Walmart and Costco. At the height of operations, the firm produced 400,000 garments a month but when the BBC visits, hundreds of sewing machines lie gathering dust in one of the warehouses.A manager at the firm, Rahila Omar, says the company's 1,000 employees, mostly women, have been laid off for the next four months due to a halt in orders."Because of the... pressure of the tariffs, our buyers wanted us to finish the order or the quantity as soon as we can. We were given a deadline of 30 June, but we finished before 30 June, and that's why we have a layoff," she Omar says TZICC is waiting for an update on Agoa and whether the current tariff structure would be reviewed before deciding on the next step. Even if the current 10% tax remained, without Agoa, it would not be enough for the firm to reopen as there would be "some additional charges" to consider, she while the factory also supplies clothing to South African retailers, Ms Omar says the income generated from these pales in comparison to what the firm earns from the US the government's assurance that it is working to resolve the issue - with the minister even promising a desperate passer-by who spotted him during our interview that "it's going to work [out] at the end of the day" - for Ms Seleso and Mr Thakeli, these are hollow words for the country's despondent and hopeless workforce. Go to for more news from the African us on Twitter @BBCAfrica, on Facebook at BBC Africa or on Instagram at bbcafrica
News24
2 days ago
- Politics
- News24
No evidence of Lesotho rebel army, says SAPS
SAPS says the country's intelligence structures have been investigating Lesotho's claims that there are illegal military camps on farms in South Africa. Lesotho Commissioner of Police Borotho Matsoso had said the country was working closely with South African officials to investigate the camps. SAPS said National Commissioner General Fannie Masemola had met with all nine provincial commissioners and Matsoso's claims were high on the agenda. The South African Police Service (SAPS) says the country's intelligence structures have been investigating Lesotho's claims that there are illegal military camps on farms in South Africa training a rebel army. But the Hawks have yet to find any evidence of this, GroundUp reports. This follows an extraordinary press briefing on 18 July by Lesotho's top security chiefs, who claimed that a rebel group known as Malata Naha is recruiting Basotho youth and providing military training in South Africa. On Saturday, SAPS issued a statement after GroundUp reported that the South African authorities were mum on the allegations. Previously, Lesotho Commissioner of Police Borotho Matsoso had said the country was working closely with South African officials to investigate the camps. The Directorate for Priority Crime Investigation (DPCI), also known as the Hawks, through its Crimes Against the State (CATS) unit, has been roped in to investigate. Various searches have been undertaken by CATS at identified farms, and no such evidence has been found to date. SAPS said National Commissioner General Fannie Masemola had met with all nine provincial commissioners and Matsoso's claims were high on the agenda. SAPS noted that a preliminary report from its Crime Intelligence Division was reviewed. Intelligence structures have heightened operations to verify the allegations. In a further development, SAPS confirmed that Masemola has directly engaged with Matsoso. 'Both commissioners agreed that law enforcement intelligence structures from both countries are on the ground investigating the existence of such camps,' the statement read. Masemola said: 'The safety and security of all people living in South Africa is of paramount importance, and anyone found committing illegal acts will face the full might of the law.' The SAPS statement said South Africans are urged not to panic or worry as police from both countries remain on high alert and are working jointly to establish the facts on the ground.
Telegraph
2 days ago
- Health
- Telegraph
Lesotho mothers fear passing HIV to their babies as US aid cuts halt testing
When the young mother-to-be arrived for the test to tell if she was HIV positive and therefore might infect her unborn child, she found the door to the clinic testing room locked. The tests had been halted Mareabetsoe Monyamane, 26, was told, and the counsellors who had once given peace of mind to expectant mothers had been laid off. 'My heart sank,' she told the Telegraph. 'I felt helpless. I sat there thinking about my baby – what if I had contracted HIV since the last test?' For nearly two decades in Lesotho, making sure that women do not pass on HIV to their children has been a cornerstone of the tiny Southern African kingdom's campaign against Aids. If women do test positive, the unborn child can still be protected by prescribing antiretroviral drugs, or anti-HIV protective medicine called pre-exposure prophylaxis, or PrEP. But the programme had been paid for with American aid, which until recently underwrote nearly every level of Lesotho's HIV response. The Prevention of Mother-to-Child Transmission (PMTCT) programme has now become a casualty of Donald Trump's decision to sharply cut back the US President's Emergency Fund for Aids Relief (Pepfar). In a country that has the world's second-highest HIV prevalence, according to the World Health Organization's August 2023 Disease Outlook report, this is devastating for pregnant women like Ms Monyamane. Over 800 of the 1,500 HIV counsellors and nurses who once guided women through testing and helped them protect themselves and their babies have been dismissed as casualties of the aid freeze. The moment she was told she would not be tested 'hit me like cold water,' Ms Monyamane recalled. 'I wanted to cry. Some of us even thought of buying self-test kits, but I am one of those who could not afford it. 'I worry even more – not just about the money to buy the test, but what the results might be and what that would mean for my unborn child. I fear for my baby's life.' Mamello Nchela, aged only 18, says she is terrified of not taking an HIV test. She said: 'The fear of not knowing leaves me with so many what ifs? I keep asking myself: 'What if I'm too late? What if I can't protect my baby?'' Some 19 per cent of people in Lesotho have HIV and their plight led Prince Harry, the Duke of Sussex, to found his charity Sentebale, to help. Unfortunately, Harry and other founders of the charity stepped down earlier this year following a clash with the charity's chief executive. At £54m ($72m) per year, Pepfar accounted for 67 percent of the £78m ($106m) HIV budget for 2024/25, according to Lesotho's ministry of health. The US has now agreed to continue only 28 percent of the Pepfar funding, which will be narrowly focused mainly around medicine distribution. The PMTCT programme has not been spared. In a health centre built with American money but now without American support, eight pregnant women, aged between 17 and 33, sit inside a yellow-walled room where the cold winter air battles the warmth of a small black-and-red paraffin heater. They have come for their monthly check-up and health talk with midwife Mphonyane Thetso, who helplessly watches as drama unfolds before her. 'We have records showing that some women delivered their babies in April and May 2025 with invalid (inconclusive) HIV status because they were not retested after we lost our HIV counsellor,' Ms Thetso said. She explained: 'Sometimes a pregnant woman tests HIV-negative at her first visit. Then, when she comes back at 36 weeks for a re-test, she tests HIV-positive. A woman can give birth HIV-positive without knowing it, if she wasn't retested. 'If she tests positive, we can still prevent mother-to-child transmission with antiretroviral therapy and PrEP 'But you can't give PrEP to someone if you don't know their HIV status.' The concern is shared at the highest levels of Lesotho's health system. The ministry of health's HIV/Aids manager, Dr Tapiwa Tarumbiswa, told parliament in May that 'HIV-unsuppressed mothers are more likely to infect their children during pregnancy, birth, and breastfeeding'. There is little hope in Lesotho that the American aid will be switched back on. Dr Tlohang Letsie, a senior lecturer at the National University of Lesotho said the country lacked minerals that the US can benefit directly from. He said: 'Another factor is that Lesotho seems to be hopeless in engaging the US. The country is simply not doing enough. It appears we are waiting for the divine intervention to blow some spirit of philanthropy into the Americans.' Maitumeleng Tsiame, aged 17, spent £1.70 ($2.30) on a ticket from Metolong, Thaba-Bosiu to Nazareth Health Centre to take her HIV test. When she arrived there, she was told instead to travel to St Joseph Hospital in Roma, requiring another £2.95 ($4) for transport. She said: 'I didn't go to Roma – not because I didn't care – but because I simply couldn't afford it. Deep inside, I am tormented by fear. I keep imagining my child being born with HIV because I couldn't get tested. It hurts. I cry in silence.' Nineteen-year-old Itumeleng Thamae was also turned away from the health centre, saying it was one of the scariest days of her life. She said: 'I felt like my baby's life was at risk, and I couldn't do anything about it. I was overwhelmed by fear – every day I worry if I am unknowingly putting my child in danger.' Matebello Khoahli's children are proof that Lesotho's PMTCT programme used to be effective. The 40-year-old tested HIV-positive in 2009, but two of her three children, aged 12 and five, have been medically declared HIV-negative. But she is now worried about her 23-month-old baby, who missed her final HIV test aged 18 months, in April. She said: 'I was told the office was closed because Trump cut foreign aid to Lesotho, and the people who worked there are no longer around. 'My mind was troubled when I was told my daughter couldn't be tested. Even today, I am still troubled, wondering where I can go for help so my daughter can get her last HIV test,' she said, adding: 'when I asked at the Nazareth Health Centre, they told me to go to St Joseph's Hospital in Roma.' But Khoahli never made the trip. She did not have the £1.90 ($2.60) needed for transport. 'We are in darkness,' she said.
Mail & Guardian
2 days ago
- Business
- Mail & Guardian
Lesotho at risk of economic collapse after aid cuts and Trump's tariffs
The famous Basotho hat building along Kingsway Road in central Maseru. Photo: Sechaba Mokhethi Lesotho is facing economic and public health crises triggered by cuts in foreign aid and harsh US trade tariffs. The small, landlocked kingdom is struggling with high unemployment and fresh job losses. According to an African Development Bank (AfDB) Country Focus The report says the slowdown is driven by declining Southern African Customs Union revenues, a decrease in foreign aid, and rising trade-related risks (notably the new, prohibitively high US trade tariffs), and the cancellation of the $300-million Millennium Challenge Corporation second five-year compact. Aid cuts have hit Lesotho's health sector hard. The sudden termination of US aid programs has resulted in the loss of about 1,500 healthcare jobs, according to the report, and has severely undermined efforts in prevention, treatment, and outreach for HIV. Lesotho has one of the highest HIV prevalence rates globally, with over 20% of the adult population living with the virus. What makes these cuts even more damaging is Lesotho's already underfunded health system. The report says Lesotho now has only 21 health workers per 10,000 people, far below the World Health Organisation's recommended minimum of 44. At the same time, Lesotho's key export sector — textiles and apparel — is under threat. The US has imposed a 50% tariff on Lesotho, temporarily reduced to 10% until 1 August. While this reduction offers some relief, AfDB warns that the long-term consequences could be severe. Lesotho's textile industry has long depended on duty-free access to US markets, which make up 47% of its shipments, valued at over $200-million annually, and account for nearly 13% of GDP. The AfDB warns that the tariffs could lead to a 20 to 30% decline in orders, a loss of over R1-billion in exports. 'This could push GDP growth below 1%, especially if factory closures or layoffs increase,' the report says. 'Lesotho may face further declines in investment, factory relocations, and job losses in its already fragile manufacturing sector, which could reduce tax revenue.' The AfDB warns of increased rates of poverty, which, together with inequality, are major issues in Lesotho. Action needed The report warns that without quick and coordinated policy actions, Lesotho could face a surge in social unrest and poverty. The AfDB urges Lesotho to act swiftly. Economic diversification, investing in skills and infrastructure, and expanding regional trade, especially through the African Continental Free Trade Area (AfCFTA), are essential. Tax reform and debt management programmes, supported by AfDB, are already underway. But more action is urgently needed. To keep the textile sector viable, the report recommends improving quality standards, logistics, and worker skills to meet changing global market demands. It also calls for accelerating regional trade efforts under AfCFTA and encouraging entrepreneurship in non-textile industries. 'Lesotho could reorient its production towards regional markets and gradually reduce its exposure to US policy shocks,' the report suggests. This article was first published on
