Lesotho has declared a national state of disaster, citing alarming youth unemployment rates and deepening economic woes triggered by uncertainty over United States trade tariffs. Deputy Prime Minister Nthomeng Majara announced that the state of disaster will remain in effect until June 30, 2027, under the Disaster Management Act, which enables the government to take urgent measures to mitigate the crisis.
Unemployment in the mountainous, landlocked nation currently stands at 30%, with youth unemployment nearing 50%, according to official statistics. The situation has been exacerbated by trade tensions with the United States, Lesotho’s key export partner under the African Growth and Opportunity Act (Agoa). The country heavily relies on textile exports to the US, which amounted to $240 million in trade in 2024.
The crisis escalated when President Donald Trump announced 50% tariffs on imports from Lesotho in April, making it the hardest-hit nation by the new policy. Though the tariffs have since been paused, a 10% tax remains in effect, further unsettling trade relations. Lesotho officials warn that if Agoa is not renewed beyond September 2025, up to 40,000 jobs could be lost devastating in a country of just over two million people.
In response, Lesotho’s government is implementing emergency measures, including waiving registration fees for small and medium-sized enterprises to stimulate job creation. The move aims to cushion the impact on thousands of families that rely on the garment sector and related industries.
Compounding the situation is the abrupt termination of support from USAID and Pepfar, critical US-funded health programs that have sustained Lesotho’s HIV/AIDS response and development initiatives.
This declaration follows a separate eight-month state of disaster due to extreme food insecurity, declared in March. At that time, Prime Minister Sam Matekane warned that 700,000 citizens were facing hunger due to a prolonged drought.
As international uncertainty looms, Lesotho is seeking to realign its economic strategy and rally domestic resilience. The government hopes that targeted interventions can curb unemployment and stabilize the country’s fragile economy during this challenging period.
