Lesotho Validates AfCFTA Strategy to Boost Trade and Economic Diversification

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 The Ministry of Trade, Industry, and Business Development, in partnership with the United Nations Development Programme (UNDP), hosted a validation workshop in Maseru to finalise Lesotho’s National African Continental Free Trade Area (AfCFTA) strategy.

AfCFTA, which was officially launched in January 2021, seeks to strengthen trade within Africa and create a unified market for goods and services among 54 countries on the continent. During the workshop, economist Mamello Nchake underscored the potential of AfCFTA to drive economic integration and diversification. She highlighted how the initiative could reduce Lesotho’s reliance on a narrow range of exports by fostering value addition and opening up new opportunities for Small, Medium, and Emerging Enterprises (SMEDs).

However, Nchake also pointed out several hurdles facing the country’s implementation of AfCFTA, such as a lack of export diversity, an overdependence on the textile and diamond sectors, bureaucratic customs procedures, long processing times, and a skills gap in the workforce.

She identified agriculture as a key sector with high potential, particularly in producing high-value crops like mushrooms, herbs, and spices, as well as livestock-based products such as industrial leather goods.

Nchake emphasized that while Lesotho continues to grapple with economic dependency, unemployment, and infrastructure deficits, AfCFTA offers a valuable path toward economic transformation and stronger regional ties. The national strategy and action plan aim to serve as a comprehensive framework to help the country capitalise on the agreement and boost its competitiveness.

She also stressed the value of evidence-based planning, derived from a broad spectrum of research and stakeholder feedback, and called for stronger collaboration between the government, private sector, and civil society. Key measures in the strategy include infrastructure development, customs reform, and workforce training to ensure Lesotho can successfully engage in the AfCFTA market.

On the financial front, Nchake noted that implementation would be supported through national budgeting aligned with outcomes, while also leveraging partnerships with development agencies and civil society to fund operational needs and support vulnerable groups.

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Echoing her views, the Ministry’s Principal Secretary, Palesa Matobako, highlighted the need to eliminate trade obstacles like non-tariff barriers, inadequate infrastructure, and restricted access to financing. She advocated for investment in entrepreneurial training and capacity building.

“To truly benefit from AfCFTA, Lesotho’s business community must be equipped with the skills and knowledge to navigate international markets. One must invest in resources, workshops, and training that empower its entrepreneurs to seize the trade opportunities ahead.