BEREA 20 ____ The Ministry of Trade, Industry and Business Development has welcomed China’s decision to extend zero-tariff treatment to all African countries, saying the initiative presents a significant opportunity for Lesotho to strengthen economic growth, expand trade and deepen bilateral relations with China.

In a press statement issued on Tuesday, the ministry said the development could create new export opportunities for Lesotho, particularly if the country improves its productive capacity and competitiveness.

The ministry, however, noted that Lesotho continues to experience a growing trade deficit with China as exports to the Asian country remain limited. 

It indicated that the removal of tariffs alone would not automatically result in economic gains unless the country enhances local production and increases value addition in key sectors.

It further pointed out that products such as wool and mohair are still largely exported in raw form, limiting the country’s ability to maximise benefits from international trade.

According to the ministry, priority areas for cooperation with China include technical support for exporters, investment in agro-processing and manufacturing, improved logistics as well as skills development.

The ministry also reaffirmed Lesotho’s commitment to supporting private sector growth and creating an enabling environment for trade and investment.