Lesotho: A Country that the U.S. Has Certainly Heard of–and Economically Swayed
In an address to the United States Congress in early March, President Donald Trump took aim at the Southern African nation of Lesotho. Criticizing certain foreign aid contracts in the country as needless expenses, he notably stated, “Eight million dollars to promote LGBTQI+ in the African nation of Lesotho, which nobody has ever heard of [...]” as he struggled to pronounce the country’s name. Despite belittling the nation’s very existence, decades of bilateral relations between the U.S. and Lesotho, as well as shared participation in several international organizations, would signify otherwise. With a population of only 2.3 million and a per capita GDP of $1,106.5, Lesotho holds an important role in international affairs that has, at times, involved direct engagement with the U.S. Trump’s dismissal of the country as an insignificant nation contrasts sharply with the reality of its expanding geographical and economic significance.
Lesotho’s Foreign Minister, Lejone Mpojoane, swiftly condemned Trump’s comments. She expressed not only disappointment to be referenced in such a manner by another head of state, but a general sense of shock surrounding the President’s disregard – especially granted that the U.S. maintains an embassy located in Maseru, the country’s capital. The bilateral relationship began in 1966, following Lesotho’s independence from the United Kingdom. Since then, the countries have enjoyed stable diplomatic relations, with U.S. foreign policy priorities focused on achieving the development of a stable, prosperous, and healthy country. Officials and citizens accordingly conveyed a sense of shock at Trump’s ignorance, suggesting that his divisive opinion is not that of the majority. Mpojoane also exposed Trump’s discrimination against Lesotho’s economic position, warning: “One day America will need Lesotho’s support.”
Ironically, the U.S. government has used Lesotho as a launching pad for its economic ambitions. Elon Musk, head of the new Department of Government Efficiency, is currently seeking to expand his business ventures into the country. On January 24, 2025, Musk, who hails from neighboring South Africa, submitted his bid for a ten-year license to provide network services in the country through Starlink, a subsidiary of his American aerospace company, SpaceX. As of February, the Lesotho Communications Agency issued a public notice confirming receipt of Starlink’s application for a Network Services License. The application currently faces opposition from local rights group Section 2, which argues that the license involves “a total absence of local ownership.” While they recognize the possible benefits of expanded internet access, the group has swiftly opposed issuing Starlink a license to operate in the country. Their argument stems from the long-standing practice that assures citizen participation in key sectors, including Lesotho’s telecommunications realm. Section 2 has also drawn on the example of two other international telecom companies, Vodacom Lesotho and Econet Telecom, both of which have operated successfully in Lesotho by uplifting local stakeholders. The fully foreign-owned structure of Starlink, Section 2 adds, risks sidelining Lesotho’s citizens from the economic benefits of a telecom operation, including profit-sharing, job creation, and influence over service priorities tailored to local needs.
The U.S. has also invested in Lesotho’s health infrastructure. A primary objective has been to reverse the country’s HIV/AIDS epidemic. Since 2006, the U.S. government, through the President’s Emergency Plan for AIDS Relief (PEPFAR), has committed more than $959 million to bilateral response in Lesotho, which has been rather successful. Under PEPFAR, Lesotho has nearly achieved the UNAID’s 95-95-95 goals: 95 percent of people living with HIV are tested and know their status, 95 percent of those diagnosed with HIV are on antiretroviral treatment (ARVs), and 95 percent of those on ARVs are virally suppressed. Nevertheless, with the Trump Administration’s recent dismantling of the U.S. Agency for International Development (USAID), there has been a decrease in funding to on-the-ground initiatives. A number of USAID implementing partners received termination notices, and slightly over 50 percent of health resources sponsored throughP PEPFAR funding, both of which have disrupted services. Overall, approximately 28 percent of PEPFAR support has resumed, while 32 percent remains on pause, and another 40 percent terminated. As outcomes remain unclear, the country faces the possibility of an exhausted supply of HIV treatment in the coming months, leading to an increased number of cases and HIV-related deaths.
Beyond financial assistance, the U.S. and Lesotho have maintained a robust relationship through the African Growth and Opportunity Act (AGOA), a U.S. trade law enacted in 2000 that allows eligible African countries duty-free access to the U.S. market for thousands of products. Lesotho has thrived under AGOA, taking full advantage of the opportunity to become one of the largest sub-Saharan garment exporters to the U.S. Under AGOA, Lesotho is ranked number two in terms of value of goods exported under AGOA and number three in terms of volume of goods exported, primarily in textiles. Consequently, Lesotho’s textile and manufacturing industry has boomed, and is currently the second largest employer in the country. With over 35,000 workers, the industry has delivered garments to major U.S. brands and nurtured local income growth, yet now faces threats of job insecurity among Trump’s unfolding trade war. While AGOA is up for review in September, it is uncertain if the current administration will follow through with its renewal. Should AGOA disintegrate, Lesotho risks the collective economic shockwaves of unstable wages, unemployment, and diminished output.
As the U.S. and Lesotho’s bilateral ties fray, the two countries can maintain a commitment to several key international organizations in which they collectively participate, including the United Nations, International Monetary Fund, World Bank, and the World Trade Organization. Moreover, Lesotho can continue to nurture its commitment to regional development and trade. Lesotho is one of five members of the Southern African Customs Union (SACU), which facilitates duty-free trade between members while extending a common external tariff against international imports, promoting trade and economic prosperity across the Southern African region. Similarly, Lesotho participates in the Southern African Development Community (SADC) alongside eleven additional states committed to regional integration, sustainable development, and poverty alleviation. Most notably, the Lesotho Highlands Water Project, a deal signed between Lesotho and South Africa in 1986, is one of the most important local development projects to date. The core purpose is to improve the livelihoods of people in Lesotho and South Africa through the transfer of water to South Africa, and generation of hydropower in Lesotho. The project has asserted Lesotho’s role as a regional economic player, and materialized the immense benefits of regional collaboration through local–rather than foreign–participation.
Despite its size, Lesotho is far from insignificant. By continuing to invest in regional leadership and voicing its voice on the world stage, Lesotho can successfully navigate shifting U.S. foreign policy – and in doing so, reject any narrative that seeks to belittle its significance. From vital healthy interventions under PEPFAR and trade expansion through AGOA and emerging tech investments like Starlink, the bilateral relationship has shaped critical outcomes for both countries. As Lesotho continues to assert its regional and international relevance, it deserves respect and support from all countries, especially bilateral partners.