Lesotho Grapples with Soaring Unemployment: State of Disaster Declared
The Kingdom of Lesotho has declared a national "state of disaster" in response to a crippling unemployment crisis, exacerbated by global trade dynamics and US policy shifts. The textile-dependent economy is struggling under the weight of mass job losses, particularly amongst its youth population.
Prime Minister Sam Matekane highlighted the severity of the situation, stating that changing global trade dynamics, US foreign aid cuts, and reciprocal tariffs have significantly worsened youth unemployment. The government aims to address this urgent need by allocating two percent of ministerial budgets to job creation initiatives.
The newly invoked law grants the government enhanced powers, allowing it to bypass standard procedures for the next two years in an effort to stimulate the economy and create employment opportunities. This drastic measure underscores the depth of the crisis facing the landlocked nation.
The Impact of US Trade Policies
Lesotho's economic woes have been compounded by US trade policies, including tariffs imposed under the Trump administration. The country, heavily reliant on textile exports to the United States under the African Growth and Opportunity Act (AGOA), was particularly hard-hit by a 50 percent tariff, before the order was paused. The government fears the potential loss of up to 40,000 jobs if AGOA is not renewed at the end of September.
Activism and Government Response
The unemployment crisis reached a boiling point recently with the arrest of an activist charged with sedition for criticizing the government's handling of the situation. This incident drew international attention and sparked outrage among human rights organizations, highlighting the growing frustration within Lesotho.
With a GDP of just over $2 billion, Lesotho faces an uphill battle in tackling its unemployment crisis. The declaration of a state of disaster represents a significant step, but the long-term success will depend on effective implementation of job creation strategies and a favorable global trade environment.