Lesotho Declares National Disaster Over Youth Unemployment Crisis

 

Lesotho has declared a national state of disaster due to its growing youth unemployment crisis, which has been significantly worsened by uncertainty surrounding US-imposed tariffs. The Deputy Prime Minister, Nthomeng Majara, announced that the state of disaster will remain in effect until June 30, 2027. According to official statistics, overall unemployment in the country stands at 30%, but among the youth, it has surged to nearly 50%. This new declaration aligns with Lesotho’s Disaster Management Act, enabling the government to take swift action to minimise the effects of the economic downturn.

One of the key contributors to this crisis is the suspension of Lesotho’s preferential trade status under the African Growth and Opportunity Act (Agoa), a US initiative that allows select African countries duty-free access to American markets. Lesotho had previously been one of the programme’s major beneficiaries, particularly in textiles and apparel. However, the imposition of a 10% tariff by former US President Donald Trump earlier this year, followed by a proposed but paused 50% tariff, has disrupted trade flows and caused buyers to cancel or delay orders due to uncertainty.

Lesotho, a small landlocked country with a population of just over two million, exported $240 million worth of goods to the US in 2024 mostly textiles. With Agoa's future uncertain, the government fears the loss of up to 40,000 jobs. In response, they are rolling out immediate economic measures, including waiving fees for registering small and medium-sized businesses to stimulate entrepreneurship.

The current economic emergency follows another national crisis earlier in the year, when Lesotho was under a separate state of disaster due to severe food insecurity affecting about 700,000 citizens. This was triggered by persistent drought and worsened by declining international support. The country had also been a recipient of significant US foreign assistance under programmes like the President's Emergency Plan for AIDS Relief (Pepfar) and the US Agency for International Development (USAID), which have also seen reductions or terminations.

Trade Minister Mokhethi Shelile recently warned that the uncertainty over trade relations with the US is already having a chilling effect on the economy. Speaking to Moneyweb, he noted that many US buyers are no longer placing orders due to confusion about future tariffs. This is particularly damaging for Lesotho’s textile industry, which has long depended on the American market for survival.

The government’s latest declaration allows for a fast-tracked national response that includes redirecting financial resources to job creation, business development, and economic recovery. Officials say these steps are essential to prevent further deterioration and to cushion the country from the potential fallout if Agoa is not renewed when it expires in September.

Critics, however, argue that the crisis has been visible for over a year, and more proactive planning might have reduced the economic shock. Still, many are hopeful that the government’s emergency measures can help stimulate local enterprise and reduce reliance on uncertain external markets.

As Lesotho confronts both economic and humanitarian challenges, the state of disaster is a formal recognition of the deepening crisis. It signals a call for urgent domestic reform and perhaps renewed dialogue with international partners to avert long-term instability.

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