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| Lesotho's formal garment industry started in the early 1980s. Initially investors, who were primarily South African, were attracted by the incentives offered by the Lesotho National Development Corporation. These initial investors were followed by other South African-based clothing companies who wished to avoid the sanctions imposed on South African manufactured goods by the US and Europe. In the early 1990s Lesotho saw significant investment from industrialists who originated in Taiwan in Southeast Asia. Over the past eight years the Lesotho apparel industry has moved from being a marginal contributor to the economy to become a well-regulated, globally-integrated industry assembling garments for some of the best-known brands in the world. Lesotho is the largest Sub Saharan exporter of apparel to the US. The growth of the industry has been built on the preferential trade opportunities created by the US African Growth & Opportunity Act (AGOA) – and the partnership between the government and the private sector including labour to take advantage of this global market. Proactive engagement by the Lesotho government including improving the business environment, enhancing investment incentives and an aggressive investment promotion campaign has seen the industry thrive. Recently, South African companies have started to invest heavily in Lesotho again, providing diversity of both markets and products. Facts and figures / products and capacity Lesotho is known as the “jeans capital of Africa”, producing 26 million pairs of denim jeans a year at eight factories as well and 6 000 tons of denim fabric at the Formosa Mill. The industry also turns out 70 million knitted garments, mainly cotton, a year at 25 factories. There are also a number of manufacturers of woven garments, including industrial workwear and chefs’ uniforms, chinos, constructed trousers and shirts. Lesotho has two embroidery firms doing contract work for other manufacturers, and one company providing screen printing services. Going up the value chain and finding a niche market The industry has accepted that it cannot compete with China when it comes to ‘cheap clothing’. Instead it is moving up the value chain, producing mainly for designer labels in the US and working finding a niche market as a responsiblel sourcing destination.
Most of the factory owners in Lesotho have signed codes of conduct which are policed by US retailers and clothing brands. Many of the US brands and retailers that source garments from Lesotho now regularly monitor factory conditions The women workers in the factories have benefited through provisions around maternity leave, health and safety, working hours and improved working conditions. The ALAFA programme is being rolled out specifically to address the HIV and AIDS pandemic in the textile and apparel industry. Over the past two years the Multi-Fibre Arrangement Forum, an international network of brands and retailers, NGOs, labour groupings, donors and multinational organisation such as the World Bank and International Labour Organisation has been working to mitigate the effects of the demise of quota on some countries, including Lesotho. The forum has played a vital role in bringing an international focus to the country.
Consumer campaigns in the US and UK against goods produced under sweatshop conditions have directly benefiting workers in Lesotho. Lesotho manufacturers have been involved in the production of clothing tied to socially conscious consumer campaigns. A range of t-shirts were produced for Gap for the (Product) Red campaign. Clothing range EDUN, owned by U2 frontman Bono and his wife, Ali Hewson, in a partnership with ONE: The Campaign to Make Poverty History made t-shirts in Lesotho using African cotton. Ten dollars from the sale of each shirt was donated to ALAFA. More than 60 000 shirts have been sold and Edun given ALAFA more than $600 000. Some of the major brands and retailers sourcing from Lesotho
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These entrepreneurs brought valuable capital, skills, and knowledge of the international textile market. At the same time their lack of familiarity with the culture and working conditions in Lesotho created problems, which have been addressed in recent years.
In the past there were problems with factory working conditions, however, today Lesotho is no longer considered a sweatshop economy and is gaining recognition as an ethical sourcing destination. 
