Mohloai Mpesi
THE government has intensified its call for the extension and modernization of the African Growth and Opportunity Act (AGOA), warning that thousands of jobs in the country’s textile sector depend on continued access to the United States market.
Speaking during celebrations marking the United States’ 250th Independence anniversary at the US Embassy in Maseru on Thursday evening, the Minister of Law and Justice, Richard Ramoeletsi, said Lesotho strongly supports the renewal of AGOA beyond its 2026 expiry date.
Mr Ramoeletsi, who represented the Minister of Foreign Affairs and International Relations Limpho Tau, said AGOA had played a critical role in creating employment opportunities and sustaining Lesotho’s manufacturing industry.
“We strongly advocate for the renewal and modernization of AGOA beyond 2026, to align with the African Continental Free Trade Area, as a catalyst for Africa’s industrialization and integration into global value chains,” Mr Ramoeletsi said.
He said the United States had remained one of Lesotho’s key development and trade partners since diplomatic relations were established in 1966, when Lesotho attained independence.
Lesotho’s textile sector has been heavily dependent on textile exports to the American market duty-free since 2000.
AGOA allows eligible sub-Saharan African countries duty-free access to the US market for more than 1800 products, plus over 5000 items covered under the Generalized System of Preferences.
The country’s textile sector currently employs over 12 000 workers. At its peak around 2009, it employed more than 40 000 workers, making it the largest employers after the government.
AGOA came under threat after the return of Donald Trump as United States president in 2024. The American president started imposing sweeping tariffs against America’s traditional trading partners in pursuance of his so called America First policy, threatening AGOA in the process. AGOA was nonetheless extended for one year and is now set to expire on 31 December 2026. The extension was signed into law in February 2026 and applies retrospectively from 30 September 2025, when the previous authorization had lapsed.
Mr Ramoeletsi said American support through programmes such as PEPFAR, the Millennium Challenge Account (MCA), the Peace Corps and AGOA had transformed lives in Lesotho through investments in health, water, sanitation, education and trade.
“The MCA has expanded access to clean water and improved sanitation, while AGOA has created thousands of jobs in Lesotho’s textile sector,” he said.
The minister further revealed that Lesotho was pursuing plans to become a net energy exporter within the Southern African Development Community (SADC), in partnership with American energy companies.
He said the government was committed to reducing barriers for American investors and increasing bilateral trade.
“While Lesotho fully supports the United States’ vision of ‘Trade over Aid’, we recognize that aid remains critical for small economies such as ours,” Mr Ramoeletsi added.
US Embassy Chargé d’Affaires, Thomas Hines, described the relationship between Lesotho and the United States as “fruitful and enduring”, saying the two countries had maintained uninterrupted ties for nearly six decades.
Mr Hines said the partnership was based on friendship, mutual respect and shared aspirations for prosperity, health and security.
He highlighted major American investments and assistance programmes in Lesotho, including more than US$1 billion invested through PEPFAR to combat HIV/AIDS.
According to Mr Hines, Lesotho had become a global success story in HIV prevention and treatment, having surpassed the 97-97-99 targets.
He also announced a new US$364 million (about M6 billion) health agreement aimed at strengthening Lesotho’s healthcare system.
Beyond health, Mr Hines said American companies had concluded commercial deals worth nearly M600 million in Lesotho this year.
“These are not loans but mutually beneficial agreements,” he said.
Among the developments highlighted was the launch of Starlink in Lesotho, which Mr Hines said would improve internet connectivity across the country.
He also said Lesotho’s climate and water resources were attracting interest from investors in data centres and digital infrastructure, positioning the country to benefit from the global artificial intelligence revolution.
Mr Hines said the US remained committed to empowering Basotho youth through exchange programmes, entrepreneurship initiatives, STEM education and the Young African Leaders Initiative (YALI).