Lesotho: Strengthening Rural Resilience

The International Trade Centre (ITC) supports with adding value to the country’s wool and mohair industry, focusing on resilience strategies against future economic shocks.

Lesotho’s economy has long depended on wool and mohair, accounting for 60 per cent of agricultural exports and supporting more than 25 per cent of the rural population.

Since the 1800s, Lesotho’s sheep have produced high-quality wool, while its Angora goats have supplied mohair – a finer, lustrous fibre prized for its sheen. These animals are largely raised in small herds by rural small-scale farmers, whose traditional livestock practices continue to form a vital foundation of the national economy. For roughly 45,000 households across the country, these natural materials provide income, jobs and a sense of stability. 

In recent years, the sector has been facing mounting challenges: limited road access, which makes the transport of wool and mohair to markets onerous and unpredictable, as well as climate challenges such as droughts and land degradation have affected fibre quality and labour conditions. 

These challenges are further compounded by a lack of coordination, policy and planning, an absent certification system, limited capacity to address new market demands and insufficient access to finance for small-scale farmers.

National Reforms Challenge a Century-Old Trade Network

Lesotho’s livestock industry once relied on a well-established cross-border network linking local producers with South African brokers, who provided markets and essential support services. While beneficial, the arrangement prevented Lesotho's farmers from fully enjoying the benefits of their work. 

In 2018, the Government of Lesotho took steps to nationalise the sector to boost local employment, farmer incomes and tax revenues, by restricting industry licences to Lesotho citizens. 

However, the reforms caused disruptions which required the Government to amend the regulations in 2019. The sector continued to remain unstable, prompting the Government to seek support from the International Fund for Agricultural Development (IFAD).

ITC and IFAD Chart a New Path

IFAD has long been active in Lesotho to reduce rural poverty and strengthen livelihoods in an economy heavily reliant on agriculture and livestock. Among its various findings, their study concluded that there are many potential prospects for upgrading the in-country value addition “through forming links with the ethical fashion industry and accessing premium ‘green fibre’ markets.” 

This insight laid out the groundwork for collaboration with us at the International Trade Centre (ITC). Our expertise in sustainable design, production and international branding directly addresses the opportunity of connecting Lesotho’s traditional fibre producers with ethically driven markets worldwide. 

Our collaboration with IFAD builds on ongoing efforts that strengthen Lesotho’s textile and clothing sector through a long-term programme we are conducting in partnership with the ILFA and the Government of Lesotho. These efforts to boost trade competitiveness and value addition have set a valuable foundation for the Mohair Value Chain Competitiveness Project. The project’s overall goal is to increase the wool and mohair sub-sector’s climate resilience, strengthen capacity building and enhance market value addition, with a specific focus on small producers and value chain enterprises.   

Building Local Capacity for Lasting Resilience

Our approach focuses on practical, community-centered interventions: local team members are trained in fibre processing, quality control and design, ensuring that knowledge and skills remain within the communities. 

At the same time, design, production and business training programmes strengthen local capacity. This method does not only improve economic outcomes; it also reinforces resilience, giving communities the tools they need to adapt despite environmental and market challenges.

At the heart of this intervention is job creation and skills development. 

By establishing a Basotho-led social enterprise, the project will open new employment opportunities across the value chain – from design and production to marketing and international trade. Climate-smart practices and strong Environmental, Social and Governance standards will ensure that growth is both inclusive and environmentally responsible, while focusing on youth and women’s participation.

At the same time, ITC supports with connecting Lesotho’s fibres with international buyers by building compelling brand stories that highlight the quality, craftsmanship and cultural significance of the fibres. 

The project celebrates Basotho heritage: connecting storytelling and cultural identity with the fibres themselves means connecting international buyers to the products they purchase. 

This story was originally published by ITC. Please visit the UN team's website for more information about the UN's work in Lesotho.