Lesotho Textiles & Apparel Project: quick guide

What we do

The Lesotho Textiles and Apparel Project has a couple areas of intervention.  Initially when the project was started in 2004, there were two key areas, namely technical assistance to the Lesotho National Development Corporation (LNDC) and the establishment of a training fund to assist industrialists improve factory productivity and human resource management.  Now the technical assistance component to the LNDC has phased out and ComMark’s focus is capacity building within the Lesotho Textile Exporters Association (LTEA).

• The training fund assisted garment and textile manufacturers in Lesotho to get up to 50% co-financing for training undertaken to improve their productivity and efficiency; industrial relations; human resources; health and safety; and supervisory and management skills. This assists with manufacturers improving their competitiveness as well as improved compliance with buyers’ codes of conduct.
• The intervention with the LTEA looks at improved marketing of the industry and aims at the encouragement of continued sourcing from existing buyers as well as attracting new buyers.  It also assists manufacturers to diversify their market base as well as promoting regional integration.  Furthermore, the project assists the LTEA to lobby the Government of Lesotho and other key stakeholders more effectively and strengthen such critical relationships.

Why this intervention

Lesotho is one of the poorest countries in the world and is classified as a Least Developed Country. One of the country’s primary objectives therefore is to make job creation and poverty reduction priorities.

The textile and apparel industry is of critical importance to Lesotho and represents the only significant industrial manufacturing in the country. Furthermore, the industry is the largest formal employer in the country. A strong textile and garment industry will, via its employment creation and economic multiplier effects, impact on reducing poverty in Lesotho.

The original ComMark intervention – assistance to the LNDC and the training co-financing - was as a direct result from a DFID-commissioned study. ComMark was to take the lead in the implementation of the recommendations contained in this study by forming strategic partnerships with relevant stakeholders. Furthermore, one of the recommendations was the need to improve productivity and industrial relations which gave credence to the training intervention.

What we achieve

Today, Lesotho remains the largest exporter of apparel to the United States under the African Growth & Opportunities Act (AGOA). Competitiveness has significantly been enhanced through ComMark’s training co-financing scheme. Measureable results include improvements in productivity levels (some firms reporting as much as a 25% improvement); reduced labour disputes; decreased number of factory cases at the Government’s Directorate for Dispute Prevention and Resolution; and increased compliance with local labour laws, international standards and buyers’ codes of conduct.

ComMark has been providing technical assistance to all stakeholders involved in Lesotho’s industry since 2004 and as a result there have been successful facilitating and hosting of various buyer missions; increased investment in Lesotho (particularly from SA manufacturers); increased interest in regional integration; improved lobbying regarding various trade agreements, incentives etc; and an enhanced image and reputation of Lesotho as an ethical sourcing destination.

How is this sustainable

It is envisaged that through the capacity building of the LTEA, they will be able to take over some of the functions previously performed by ComMark, and develop the expertise to handle these activities through their own resources.

In terms of training, the World Bank has financed the establishment of two Skills Development Centres and it is envisaged that these Skills Centres will take over the training needs analyses, provide the necessary training – either themselves or through the procurement of services of external training providers, most of whom have worked consistently with the ComMark training scheme.

Who we work with

ComMark works with all stakeholders involved in the textile and apparel industry in Lesotho including the manufacturers themselves; employer associations; trade unions, relevant Government of Lesotho Ministries and agencies; utility companies; potential investors in Lesotho; and existing and potential buyers and retailers.

ComMark

ComMark aims to reduce poverty in the region by putting into practice the development approach known as ’making markets work for the poor’, or MMW4P, which has become increasingly prominent within the international development community. ComMark is active in commodity and service sectors that offer significant potential for pro-poor growth. ComMark aims to address the regulatory, policy, productivity, institutional and business service constraints in these sectors to make them work more inclusively and effectively for poor people - whether as workers, entrepreneurs or consumers.