Lesotho has declared a two-year state of disaster in response to the significant economic downturn caused by the fallout from US tariff changes. This unprecedented move aims to mitigate the adverse effects on the country’s economy and provide a framework for emergency response and recovery measures.
The decision comes after a series of tariffs imposed by the United States severely impacted Lesotho’s export-driven sectors, especially the textile and manufacturing industries, which are pivotal to the nation’s economy. The government has expressed concerns over rising unemployment rates and decreasing foreign exchange earnings.
Key Measures Announced
- Emergency funding to support affected industries and workers.
- Enhanced social welfare programs to assist vulnerable populations.
- Implementation of policies to diversify the economy and reduce reliance on exports affected by US tariffs.
- Establishment of a task force to monitor the situation and coordinate disaster response efforts.
Impact on Lesotho’s Economy
The state of disaster declaration acknowledges the severity of the economic challenges faced by Lesotho. Trade disruptions have led to:
- A sharp decline in export volumes.
- Increased production costs due to supply chain interruptions.
- Heightened economic uncertainty affecting investment and growth.
The government urges international partners and financial institutions to collaborate in providing support during this critical period.
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