AGOA extension a game-changer for textile industry

Lesotho’s textile industry is breathing a sigh of relief after the United States House of Representatives approved a three-year extension of a trade programme that allows many sub-Saharan African countries like Lesotho duty-free access to American markets.

The House of Representatives voted in favour of the African Growth and Opportunity Act (AGOA) renewal this week, with 340 lawmakers supporting the bill and 54 opposing it. AGOA had expired in September 2025.

This majority decision is now awaiting a nod from the US Senate and endorsement by President Donald Trump.

The Lesotho government and textile unions had been lobbying for the extension, warning that failure to renew AGOA would devastate the country’s economy and lead to widespread job losses.

This breakthrough comes months after a high-level delegation led by Minister of Trade and Industry, Mokhethi Shelile and Labour and Employment, Tšeliso Mokhosi in September last year lobbied the United States lawmakers.

The bill known as the AGOA Extension Act, focuses on the extension of certain trade benefits and customs user fees related to imports from specific African countries.

It aims to accomplish, among others, extension of duty-free treatment for imports from specified countries in Africa under AGOA.

The bill also proposes to change the expiration date for these benefits from September 30, 2025 to December 31, 2028 which means that countries eligible under AGOA will continue to receive preferential treatment when exporting to the United States for an additional three years. It further amends provisions concerning regional apparel article programmes, increasing certain limits.

Similar adjustments are made to other sections related to third-country fabric programs, ensuring that more types of fabrics may be used in producing apparel that can be exported duty-free.

In addition, the bill includes a provision for retroactive application of the duty-free treatment. Any covered articles that entered the U.S. after September 30, 2025, and before the enactment of this Act can be treated as if they entered on the date of enactment. This means that importers may request to have their duties recalculated based on the new law.

It adds that importers must submit their requests within 180 days after the enactment of the Act while amounts owed by the U.S. for these re-duties will be paid without interest within 90 days of the liquidation or reliquidation process.

Local organisation, the United Textile Employees (UNITE) has welcomed the development, saying it brings hope to the already struggling industry.

Uncertainty has been the main challenge dogging Lesotho’s clothing and textile sector, leading to reduced working hours and wages in the past years.

In an interview with theReporter on Wednesday, UNITE general secretary Senohe Solong noted that the extension would be a game-changer for the sector in bringing in more orders and sustaining jobs.

Solong said the decision by the United States House of Representatives will give Lesotho a clearer picture of the future, allowing factories to plan and invest in their operations.

“In addition, we expect that textile workers will finally receive their full salaries, and that there will be no more layoffs and reduced working hours,” he noted, recounting that this had had far-reaching consequences for the affected employees.

“The effects don’t just end there but also affect the economic stability of the workers’ families as they are not able to pay school fees and other needs.”

The industry challenges had also affected other businesses and the country’s economy at large.

Meanwhile, the Ministry of Trade and Industry issued a statement on Wednesday welcoming the extension.

“The government of Lesotho warmly welcomes and strongly commends the decisive bipartisan move towards the passage of the African Growth and Opportunity Act (AGOA) Extension Act. H.R 6500. As Basotho, we look forward with hope to a sustainable decision from the administration of the United States of America,” it said.

The ministry also announced that Shelile is currently in the USA to continue engagements with key stakeholders, including members of the Senate, buyers and other relevant stakeholders regarding the renewal of AGOA.