Government’s efforts to bring Lesotho’s ailing clothing and textile industry back on its feet and save jobs suffered a major knock this week after Ace Apparel factory closed shop in Maputsoe in the Leribe district
Not for the first time, but the second time. The same factory left 1000 workers stranded when its owners pulled a fast one on them by disappearing over the weekend without paying them their salaries for December and other benefits.
Like we previously mentioned, this does not augur well for the country whose unemployment rate was estimated at 23.74 percent in 2023. This means unemployed people in Lesotho are estimated at 430 000 in 2023. On the other hand, the employment rate in Lesotho was at the beginning of 2023 forecasted to sit at 57.14 percent.
Lesotho’s unemployment, poverty and income inequality and other social ills remain pervasive in the face of non-inclusive growth.
This raises questions about the minister of finance’s honesty when she told parliament last week that “the textile and apparel sector is a cornerstone of Lesotho’s economy, accounting for one-third of GDP and 43 percent exports in 2021, and employing over 40,000 work force. Plans to further bolster employment include the creation of 8,000 to 10,000 new jobs by 2024-2025, facilitated by the completion of 16 factory shells in Ha Belo and enhancements to laundry facilities.
“Additionally, the sector’s growth initiatives, such as supporting Free on Board (FOB) operations, are expected to generate an additional 5,000 jobs through the establishment of two new factories in 2024.”
We are also tempted to dismiss as playing to the gallery, the trade minister’s open promises last year when he told all and sundry that ‘the prime minister has found new investors and the textile industry will see several factories opening soon…”
