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Uncertainty over AGOA puts African apparel exports at risk

13 Jul '25

3 min read

Uncertainty over AGOA puts African apparel exports at risk

Insights

Rising uncertainty and new Trump-era tariffs are destabilising fragile African textile industries.
Lesotho has already declared a national state of disaster.
With AGOA expiring soon, fears are growing across sub-Saharan Africa.
The rollback or expiry of AGOA could stall two decades of economic progress.
As the US shrinks aid, countries including China and India are working to establish closer ties.

Lesotho’s economy is heavily reliant on its textile (& apparel) industry, which was largely built through AGOA incentives. The sector is the nation’s largest private employer, providing around **,*** jobs—most held by women—and accounts for approximately ** per cent of its manufacturing exports, according to Oxford Economics. Garments produced in Lesotho, including those for brands like Levi’s and Wrangler, represent a significant portion of exports to the US and contribute nearly ** per cent to the country’s GDP of just $* billion.

Last Thursday (July **), Lesotho declared a national state of disaster following a sharp rise in youth unemployment and factory layoffs directly linked to the new tariffs. Factory owners such as Kobeli, which has already let go of *** workers producing for the US market, warn of even more severe impacts if the trade restrictions continue.