Garment industry in Lesotho (pop: 2.3 million) hanging by a thread due to 50% Trump tariff
Textile manufacturing is one of Lesotho's key industries, providing around 12 000 jobs.
Archive image: Garment workers. Wikimedia Commons/Ben Edwards/USAID
Africa business specialist Rutendo Hwindingwi joins Stephen Grootes for the Africa Business Focus on The Money Show.
The formula the US administration used to determine the latest tariffs Donald Trump inflicted on countries around the world, is the subject of much speculation and even derision.
Some southern African countries have been hard-hit - South Africa's been slapped with 30%, and tiny Lesotho (population: 2.3 million) with 50%.
Lesotho's garment industry, which exports around 75% of its products to the US, ironically produces the “Trump Golf” branded shirt used by the US President at many of his courses.
The Africanews network reports that the industry provides around 12 000 jobs in Lesotho and it now hangs by a thread.
Stephen Grootes talks to Africa business specialist Rutendo Hwindingwi, founding director of Tribe Africa Advisory.
Looking at the continent as a whole, Africa's trade with the US collectively for all 54 countries is around $72 billion, Hwindingwi says, while China's is at $$500 billion.
"Lesotho probably exports around $237 million to the US but in return they only import from the US about $2.8 million, so you can see the surplus to Lesotho."
Rutendo Hwindingwi, Founding Director - Tribe Africa Advisory
"The suspicion is that probably America wants to leverage this for the diamonds and the other mineral endowments Lesotho has. It boils down to a huge impact on Lesotho and virtually no impact on the US."
Rutendo Hwindingwi, Founding Director - Tribe Africa Advisory
Scroll up to the audio player to listen to Africa Business Focus