Following the recent 50 percent tariff increase imposed by the United States on Lesotho’s exports, the African Development Bank (AfDB) has expressed its willingness to support the country should it present mitigation plans to address the impact of the new trade policy.
The AfDB Secretary General, Mr. Vincent Nmehielle, made this revelation during a webinar while responding to a question from the Lesotho News Agency regarding the bank’s efforts to help member states diversify their export markets and reduce dependency on single trade partners.
In his response, Mr. Nmehielle acknowledged that Lesotho’s textile industry has been heavily reliant on the U.S. market, a factor that makes the tariff hike particularly challenging for the country’s economy. He emphasized that this situation should serve as a wake-up call for African nations to strengthen regional cooperation and develop sustainable trade strategies that benefit the continent as a whole.
Mr. Nmehielle further stated that the AfDB is prepared to engage with Lesotho in exploring alternative markets and implementing economic measures that can cushion the country from the adverse effects of the tariff increase. He encouraged African nations to prioritize intra-African trade and leverage platforms such as the African Continental Free Trade Area (AfCFTA) to create resilient economies.
As Lesotho assesses its next steps, the government is expected to work closely with development partners and industry stakeholders to formulate strategies that will ensure long-term trade stability and economic diversification. The AfDB’s commitment to supporting mitigation efforts signals a crucial opportunity for the country to re-evaluate its trade policies and enhance its global competitiveness.
