Lesotho: An Introduction
 

In May 2005, the MFA Forum identified Lesotho as one of the first of two priority countries that the MFA Forum would engage with based on the critical data that was collected ( see Mapping the End of the MFA in publications). At the time, the apparel industry in Lesotho was successful in attracting foreign direct investment and was the biggest exporter of garments and textile products under the African Growth and Opportunity Act (AGOA). But the industry was facing and continues to face increased competition from other global players and the expiration of the 3rd country fabric provision of the AGOA (due to expire September 2007, extended through 2012) poses yet another challenge. However, the industry shows strong commitment to improving labour standards and those efforts have created an opportunity for competitive advantage.

In 2005, the Lesotho Minister of Finance requested the World Bank, a member of the MFA Forum, to assist the government in identifying and working with stakeholders in the apparel industry to address key competitiveness issues in the country. Following discussions between the Government of Lesotho, the World Bank and the MFA Forum, it was agreed that the MFA Forum would visit Maseru, Lesotho in August 2005 and begin the collaborative process of identifying key issues and working with key stakeholders for sustaining the industry. A delegation of MFA Forum participants met individually with the Government, industry associations, trade unions and non-governmental organisations, all of whom shared their views on what Lesotho needed to do to sustain and grow its position as an important player in the global garments industry and how all stakeholders could contribute to solutions.

In order for Lesotho to seize the opportunity from the AGOA extension and the potential advantage of improved labour compliance, several key issues need to be addressed by a range of local and international stakeholders. These issues include: regional integration, market diversification, elevated product development, factory based productivity and skills development, and addressing the HIV/AIDS crisis. Other issues that need to be addressed include: better market access via preferential trade agreements (EU included); industrial incentives; and vertical integration of the industry.

In May 2006 the MFA Forum, with support from Com Mark and the World Bank, held an international conference in Maseru titled 'Destination Lesotho: On the Road to Responsible Competitiveness' that brought together stakeholders in the garment industry to discuss issues and strategies for the post-MFA era to improve the competitiveness of Lesotho's garment industry.

In addition, the conference brought Bono, the GAP Product Red team, and Edun to participate in the conference and bring attention to the country and its industry. Bono promoted the Lesotho apparel industry as well as a new initiative called the Apparel Lesotho Alliance to Fight AIDS (ALAFA), which is expected to enhance Lesotho's growing reputation as a socially responsible source of clothing for famous brands.

By the end of the conference, all stakeholders agreed a roadmap for Responsible Competitiveness, identifying key organisations and their roles and responsibilities. In addition, it was agreed that Lesotho would be part of the International Labour Organisation's Decent Work Programme.

The MFA Forum Lesotho Working Group continues to work with the country and its stakeholders to promote the industry and support the responsible competitiveness agenda.