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 The formal garment industry started in Lesotho in the early 1980s. This was primarily as a response by South African-based clothing companies to avoid the sanctions imposed on South African manufactured goods by the US and Europe. Also, the Lesotho National Development Corporation offered incentives to the South African industrialists who set up in Lesotho.
Most of these industrialists originally came from Taiwan in Southeast Asia. These entrepreneurs brought valuable capital, skills, and knowledge of the international textile market. Increasingly, South African companies are also investing in Lesotho, providing diversity of markets and products. In October 2001, the government, through its Ministry of Trade & Industry, Cooperatives and Marketing, commissioned a study of the apparel sector. This study, funded by the UK's Department for International Development, was workshopped with all stakeholders and incorporated as a working document of the Lesotho government. In 2003, the ministry approached the regional development agency ComMark Trust to help implement the recommendations of the study. As a result, ComMark assisted the industry with capacity building and technical assistance. Steps taken to enhance the long-term sustainability of the industry included: Increasing factory efficiencies through co-financing training. Raising the international profile of the industry by building its reputation as a responsible sourcing destination. Providing the government and industrialists with regular trade briefings to improve preferential market access through trade agreements such as AGOA and the Economic Partnership Agreement. Assisting the government to develop meaningful incentives while cutting bureaucratic red tape.
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