Smaller companies in South Africa and Lesotho are set to benefit from renewed trade and investment ties between the two countries, following high-level bilateral talks held in Pretoria this week.
The Department of Trade, Industry and Competition (DTIC) and Lesotho’s Ministry of Trade, Industry and Business Development have committed to working closely to align their economic strategies, prioritise value-added production and increase market access for local businesses.
This cooperation is rooted in a Memorandum of Understanding on economic cooperation signed earlier this year during a Bi-National Commission meeting.
The bilateral engagements formed part of a week-long study mission by Lesotho’s trade officials. It focused on strengthening regulatory frameworks for indigenous plants and exploring mechanisms to better utilise trade agreements such as the SADC-EU Economic Partnership Agreement.
The mission also focused on exchanging practical strategies for inclusive growth and development.
DITC trade deputy director-general Xolelwa Mlumbi-Peter said that regional solidarity was vital in the current global economic climate.
“The importance of sharing resilience-building strategies amidst the seismic shifts in global trade is timely and can also enhance the buoyancy of the region,” she said.
The partnership between the two countries provided a platform to diversify production and leverage trade agreements that the Southern African Customs Union was party to. This would provide a good platform to access global markets, said Mlumbi-Peter.
Lesotho’s Principal Secretary for the Ministry of Trade, Industry and Business Development, Palesa Matobako, emphasised the value of intergovernmental collaboration.
“This mission is not only about strengthening policy frameworks, it’s about learning from one another, building value chains that benefit our entrepreneurs and ensuring that our producers are globally competitive,” she said.
The two countries identified several sectors with high potential for cross-border value chains, including automotive manufacturing, clothing and textiles, cosmetics and essential oils, cannabis, fruits and vegetables and leather and meat products.
These sectors, which are often dominated by SMEs, hold great potential to stimulate job creation, especially in rural and peri-urban areas.
DTIC Africa bilateral trade director Calvin Phume said that creating enabling environments for SMEs would be a cornerstone of this partnership.
“We welcome the commitment between our two countries to work together to unlock opportunities for our local producers. These sectors are not only important for trade – they are lifelines for thousands of small businesses and families,” he said.
The talks also reinforced a joint commitment to fast-track the implementation of the African Continental Free Trade Area and finalise negotiations in key sectors such as clothing, textiles and the automotive sector.
These industries were noted for their potential to accelerate inclusive economic growth.
For entrepreneurs in both countries, this agreement is expected to reduce red tape, simplify export procedures and expand market access across borders and beyond Africa.
“We are not just strengthening ties between governments; we are opening doors for entrepreneurs, farmers and small manufacturers to become continental and global players,” said Mlumbi-Peter.
