According to a report by Lesotho’s local media “The Post” on October 6, the economic recession caused by the new crown epidemic has led to large-scale layoffs in Lesotho’s textile factories, and a large number of textile workers have fallen into trouble. Chakalane, a worker who was laid off by the Nianxing Textile Factory last year, said that the salary at the textile factory is 2,400 maloti per month, which can meet daily expenses. But now, she has lost her stable income, and as house rent and food prices rise, her life becomes increasingly difficult. Another worker, Mareitumetse, described the experience as “drowning in immense pain”. Layoffs have caused family income to plummet, and the tight living conditions have affected the physical and mental health of family members, indirectly making it more difficult to find a job. These experiences illustrate the far-reaching consequences of business shutdowns caused by the pandemic.
Nianxing Group, the largest textile factory in Lesotho, is the hope of many Basotho people. It is understood that the company’s textile factories will conduct unpaid layoffs for three months from October 2022 to January 2023. Group manager Ricky Chang said that the economic recession caused by the epidemic has led to a sharp drop in buyer orders, and the textile industry has also been affected by supply chain disruptions. The Russia-Ukraine conflict has further worsened the situation. The United States is the main market for Lesotho’s textile industry, and its domestic food prices soared during the war, which also dealt a blow to Lesotho’s textile industry. It is expected that in December, Nianxing Group will have no production orders at all, so it will have to lay off employees. Since operating in Lesotho in 1990, Nianxing Group has created more than 10,000 jobs for Basotho people. Affected by the epidemic, Nianxing Group has closed most of its textile factories. The company will lay off about 7,000 workers in 2020 and 2021.
As the impact of the epidemic gradually emerges, Lesotho’s export of 90% of its textile products to the United States under the African Growth and Opportunity Act (AGOA) has slowed down. AGOA is a bill by the United States that provides duty-free export treatment to qualified African countries. Lesotho has always been its biggest beneficiary, with about 40,000 jobs directly created.
Makakole, head of the National Clothing, Textile and Allied Industries Union (NACTWU), said the situation in the textile industry is deteriorating and only the government can save Basotho people from this crisis Come to the rescue. Ramaili, chief executive of the Lesotho National Development Corporation (LNDC), noted at an investment forum in May that “this is a crisis that requires cooperation.” Stakeholders such as governments, workers, investors and society lack a sense of collaboration, and they lack in-depth understanding and understanding of the textile sector. Nonetheless, Lesotho still has an opportunity to reshape its position as a sourcing location and leader in Africa’s apparel and textile industry. Measures such as facilitating trade by simplifying infrastructure, promoting vertical streamlining and diversification of supply chains, extending standard audits to local manufacturers, and seeking orders from common stakeholders can all help achieve this goal.
It is understood that the textile industry is the second largest source of employment in Lesotho after the government, with approximately 40,000 workers.
