Africa needs new trade plans

WASHINGTON’S new tariffs on nearly 70 countries, including about 20 in Africa, are set to take effect after US President Donald Trump signed an executive order last week.

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According to a White House release, the duties increase to 15% for countries such as Lesotho, Madagascar, and Nigeria, while Libya, South Africa and some others face a 30% tax..

African officials and experts have warned that the unpredictability of US trade policy fuels uncertainty for the continent’s development, while underscoring the need for a strategic and coordinated response across African countries. Last month, amid the harsh winter of the southern hemisphere, textile workers roamed an industrial zone of Maseru, the capital of Lesotho, to search for new jobs.

Landlocked in southern Africa, Lesotho is one of the world’s least developed nations, according to the UN, with nearly half of its population living below the poverty line and unemployment at around 25%.

The US tariff regime has dealt a heavy blow to the country’s textile industry, said Mokhethi Shelile, Lesotho’s minister of trade, industry, business development and tourism.

Textiles are a cornerstone of Lesotho’s economy as the country is one of Africa’s largest garment exporters to the US. But since the tariff was announced, many orders have been cancelled, potentially leaving around 13 000 workers jobless.

According to Teboho Kobeli, head of Afri-Expo, one of Lesotho’s largest textile companies, the sudden halt in orders has caused a major disruption, even if the US-bound exports account for just 10% of their total output. “We had to lay off nearly 500 workers to ease the financial pressure,” he said.