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Chapter 10: The manufacturing sector and its implications for international trade in Lesotho

  • Seipati Gertrude Chesetsi(author)
  • Lefa Augustinus Matsoal(author)
  • Nthabiseng Letlala(author)
  • Mofihli Ntsasa(author)
Chapter of: A compendium on international trade in Lesotho
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TitleChapter 10: The manufacturing sector and its implications for international trade in Lesotho
DOIhttps://doi.org/10.4102/aosis.2025.BK536.10
Landing pagehttps://books.aosis.co.za/index.php/ob/catalog/book/536
Licensehttps://creativecommons.org/licenses/by-nc-nd/4.0/
CopyrightDenis Nfor Yuni & Tsotang Tsietsi (eds.). Licensee: AOSIS (Pty) Ltd. The moral rights of the editors and authors have been asserted.
PublisherAOSIS
Long abstract

This chapter provides a comprehensive examination of the manufacturing sector in Lesotho and its implications for international trade. It offers a detailed historical overview, delineating the evolution of manufacturing in the country across key developmental phases while emphasising its pivotal role as a driver of economic growth, job creation and income improvement. The chapter scrutinises the contributions of organisations such as the Lesotho National Development Corporation and the Basotho Enterprise Development Corporation in fostering and supporting the manufacturing sector. Additionally, it delves into various subsectors within the manufacturing industry, including textiles and garments, leather and footwear, and food and beverages, highlighting the dominance of the textile and garment industry and its significant contributions to Lesotho’s gross domestic product and employment. Moreover, the chapter explores the role of trade agreements, such as the *African Growth and Opportunity Act *(AGOA) and Everything but Arms (EbA), in facilitating Lesotho’s manufacturing exports to the United States of America (USA) and the European Union (EU) markets. The chapter concludes by discussing the potential of emerging industries such as horticulture and agro-processing, cosmetics, automotive and electrical appliances, underscoring the paramount importance of the manufacturing sector in Lesotho’s economy and its pivotal role in international trade while offering recommendations for further growth and integration.

Print length17 pages
LanguageEnglish (Original)
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Funding
  • National University of Lesotho
Contributors

Seipati Gertrude Chesetsi

(author)
National University of Lesotho
https://orcid.org/0009-0008-9724-5720

Seipati Gertrude Chesetsi is a dedicated economist and crisis response and resilience quantitative research intern at the joint United Nations Development Programme and Istanbul International Center for Private Sector in Development (UNDP IICPSD). Chesetsi holds an MSc in Economics from NUL, in collaboration with the AERC, specialising in International Trade, Economics of Natural Resources, as well as Environmental Economics and Climate Change. Throughout her MSc programme, Chesetsi served as a postgraduate student assistant in the Department of Economics. Chesetsi has contributed to academic discourse as an author and presenter at both international and local conferences. She authored work for the International Conference on International Trade and Investment (ICITI2024) for the Doctoral and Young Scholars Colloquium, themed ‘Sustainable Trade: Non-Renewable Natural Resource Trade on Environmental Degradation and Environmental Sustainability in sub-Saharan Africa’. Chesetsi also authored work for the NULWTO Research Chairs’ Third Annual Conference, themed ‘Bridging borders: Information communication technology (ICT) and International tradeoutcomes in Lesotho’. Chesetsi has received several accolades, including the Econet Higherlife Foundation Scholarship (2016–2022). In 2023, Chesetsi was a junior research assistant and research grant recipient under the NUL WTOResearch Chair. In 2024, she contributed as a researcher and report author for the Market Research on Training Needs Assessment for International Trade Report. She also worked at the Revenue Services Lesotho in the Commissioner-General’s Office. Chesetsi was the Research Assistant for the Lesotho 2025 Voluntary National Review under the Ministry of Development and Planning with the United Nations. Chesetsi’s research interests lie at the intersection of international and environmental economics, focusing on sustainable trade and climate resilience. Chesetsi is committed to advancing policy-oriented research on trade, sustainability and economic resilience.

Lefa Augustinus Matsoal

(author)
National University of Lesotho
https://orcid.org/0009-0000-3207-8011

Lefa Augustinus Matsoai is a dedicated researcher and economist with a strong academic foundation and a passion for data-driven policy analysis. Matsoai holds an MSc in Economics from NUL, Lesotho, which he completed in collaboration with the AERC, as well as a Bachelor of Arts (BA) in Economics from the same institution. Matsoai has demonstrated exceptional research capabilities, earning the prestigious grant from the NUL WTO Research Chair for the 2023/24 academic year. His expertise spans international economics, financial economics and environmental economics, with a keen interest in exploring the intersection of trade, finance, and sustainability. Matsoai has contributed to the field through scholarly publications, including his co-authored paper, ‘The impact of export status on access to finance by firms in the Southern African Development Community’, published in the recognised academic journal International Journal of Recent Research in Commerce Economics and Management (IJRRCEM). With experience in economic research, data analysis and policy evaluation, Matsoai is committed to advancing knowledge and shaping informed financial decisions.

Nthabiseng Letlala

(author)
National University of Lesotho
https://orcid.org/0009-0000-7116-8634

Nthabiseng Letlala holds a BA and an MSc in Economics from NUL, Lesotho. Letlala’s research interests span development, international, and environmental economics, underscoring her commitment to addressing complex global challenges. To support this work, Letlala received the NUL WTO Research Chair grant for the 2023/24 fiscal year. Letlala has served as a lecturer assistant at her university and as a junior research assistant for the NUL WTO Research Chair. She is the author of the working paper ‘The potential effects of the African Continental Free Trade Area on Intra-African trade: A gravity model approach’. Additionally, Letlala is a former intern at both the World Bank Group (WBG) and the African Development Bank (AfDB) group. So far, Letlala has gained invaluable experience in global development and economic policy by contributing to high-impact projects and collaborating with a diverse team of experts.

Mofihli Ntsasa

(author)
National University of Lesotho
https://orcid.org/0009-0004-5276-5811

Mofihli Ntsasa holds an MSc in Economics from NUL, Lesotho, obtained in collaboration with the AERC, as well as a BA in Economics from the same institution. In 2023, Ntsasa was awarded a research grant from the NUL WTO Research Chair. His research focuses on the effects of currency depreciation on trade, particularly within the Southern African Customs Union (SACU) countries. Ntsasa has served as an adjudicator in debates organised by the NUL Student Association.

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