Challenges and Decline: Lesotho's Textile Industry Faces Job Losses
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- Published: Thursday, 20 June 2024 17:08
The textile and apparel industry in Lesotho has been grappling with significant challenges in recent years, resulting in a stark decline in employment and economic impact. According to recent reports from the Lesotho National Development Corporation (LNDC), approximately 16,000 jobs were lost in this sector between March 2018 and March 2024, underscoring a period of sustained difficulty for the industry.
In the most recent year alone, from March 2023 to March 2024, the sector witnessed a staggering 12.79% decrease in employment, equating to the loss of 4,740 jobs. Puseletso Makhakhe, the LNDC’s corporate investment and trade promotion general manager, highlighted these alarming statistics during a workshop aimed at addressing the industry's challenges.
Makhakhe pointed out that the decline in employment reflects broader issues affecting the sector's ability to sustain growth and competitiveness. "Our employment trends show that in March 2018, we had 49,945 jobs [in the textile sector], but in March 2024, we were at 34,151," she stated, noting that despite being the second largest employer after the public sector, the industry has been on a downward trajectory.
Several factors have contributed to this decline. Increasing operational costs, disruptions in the supply chain, and a decline in export orders have severely impacted the industry's ability to maintain its foothold in the global market. Makhakhe also cited financial strain exacerbated by delayed value-added tax refunds as a significant hurdle faced by textile and clothing manufacturers in Lesotho.
The repercussions of these challenges extend beyond job losses, affecting Lesotho’s overall economic performance. The textile sector has historically been a cornerstone of the country's economy, contributing significantly to its gross domestic product (GDP). However, the recent downturn has underscored the urgent need for strategic interventions to revive the industry.
Efforts are underway to address these issues, with initiatives focused on promoting ethical practices and enhancing industry standards to regain international competitiveness. The LNDC workshop served as a platform to engage manufacturers and industry stakeholders in discussions aimed at revitalizing the sector.
"As we navigate these challenges, it is crucial for manufacturers to adhere to ethical practices and improve operational efficiencies to attract orders from abroad," Makhakhe emphasized, highlighting the workshop's goal to foster a sustainable path forward for Lesotho's textile and apparel industry.
Looking ahead, stakeholders are optimistic about the industry's potential for recovery, driven by concerted efforts to address structural challenges and create an enabling environment for growth. By leveraging strategic reforms and international partnerships, Lesotho aims to restore its position as a key player in the global textile market, ensuring sustainable employment and economic prosperity for its people.