Lesotho declares two-year national state of disaster amid deepening economic crisis

The announcement was made by Deputy Prime Minister Nthomeng Majara, who revealed that the national unemployment rate has surged to 30%, with thousands more job losses expected in the coming months.

Majara stated that the state of disaster will remain in effect until June 30, 2027, as the government explores alternative strategies to stabilize the struggling economy.

The unemployment crisis is particularly severe among young people, with estimates indicating that approximately 44% of individuals aged 20 to 35 are currently jobless.

The situation was further strained after Trump imposed a 50% tariff on goods from the landlocked nation, significantly impacting its export revenues. Although the tariff has since been reduced to a 10% levy as part of a broader trade measure affecting several countries, its economic toll remains substantial.

Image: lena.gov.ls

The economy of the Southern African country is also threatened by the uncertainty around the renewal of the African Growth and Opportunity Act (AGOA) in September. The government has warned that over 40,000 people risk losing their jobs if AGOA is not renewed.

AGOA gives preferential access to certain goods from African countries to the U.S. market.

Advocacy groups have criticized the government for invoking the 1997 Disaster Management Act, which is reserved for responses to natural calamities. The act allows the government to bypass parliament and directly address the prevailing disaster by allocating resources without prior approval.

According to the government, the state of disaster declaration is intended to unlock emergency funding to address the growing unemployment crisis. Cuts from USAID have also severely impacted the country's health sector, which relies heavily on foreign assistance—especially for critical HIV/AIDS programs.