The Kingdom of Lesotho has officially declared a state of national disaster in response to escalating unemployment rates that have reached alarming levels. The announcement was made by Deputy Prime Minister Nthomeng Majara, stating that the state of disaster will remain in effect until June 30, 2027, as the government implements urgent measures to mitigate the socio-economic fallout.
With a population of approximately 2.3 million, Lesotho is grappling with an official unemployment rate of 30%, while youth unemployment has soared to 50% as of 2025. This crisis has been compounded by external economic pressures, most notably the imposition of punitive U.S. tariffs.
In April, U.S. President Donald Trump included Lesotho in a controversial 50% customs tariff decision, despite the country being a recipient of $8 million in U.S. aid via USAID. Although the tariff was later suspended, the initial announcement triggered widespread job losses, dealing a severe blow to Lesotho’s fragile economy.
According to the Observatory of Economic Complexity (OEC), Lesotho’s exports to the United States totaled $228 million in 2023, predominantly driven by the textile sector, while imports from the U.S. remained below $8 million. The textile industry is a cornerstone of the national economy, employing nearly 40,000 workers. The sudden decline in U.S. market access led to factory closures and mass layoffs, significantly contributing to the declaration of a national disaster.
While more than 80% of Lesotho’s foreign trade is conducted with neighboring South Africa, the U.S. market accounts for over 10% of the country’s GDP, underscoring the strategic importance of its textile exports. The government is now prioritizing measures to revive the sector, attract new investments, and create employment opportunities to stabilize the economy.
Lesotho’s leadership has called on international partners and stakeholders to support the nation’s recovery efforts, particularly in revitalizing the textile and garment industries, which remain critical for economic survival and social stability.
