Lesotho turns to SMEs to unlock AfCFTA trade opportunities

Lesotho is prioritizing small businesses as it aims to capitalize on opportunities presented by regional trade agreements and the African Continental Free Trade Area (AfCFTA). To facilitate this, the Lesotho Trade and Industry Ministry is hosting a three-day workshop designed to assist SMEs in competing on a global scale and tapping into Africa's burgeoning market of over 1.3 billion people and a staggering $3.4 trillion GDP.

Lesotho's Principal Secretary for Trade, Palesa Matobako, stresses the importance of diversifying export markets, integrating into value chains, and upskilling operations to leverage these opportunities. The workshop aims to equip businesses with the practical knowledge and skills necessary to benefit from the AfCFTA agreement, which goes beyond mere sales and seeks to foster growth, investment, skill development, and sustainable job creation for Basotho.

Dr. Jacqueline Olweya, United Nations representative in Lesotho, emphasizes the importance of translating workshop learnings into actual market readiness and partnerships. Motheba Malibeng, a Programme Officer for Regional Trade at the SADC Secretariat, underscores the need for businesses to recognize their competitive advantages and focus on products where the continent holds a distinct edge, such as Mohair and local flora.

Terence Mabaso, a policy researcher at the Southern African Customs Union, advises targeting products with a continental comparative advantage, such as Mohair and unique tree species, to maximize the potential of the AfCFTA. Lesotho's approach to the AfCFTA is not about abandoning traditional export markets but expanding the market base and enhancing the competitiveness of Basotho businesses.