Smaller enterprises have largely been unable to access the real benefits from the African Growth and Opportunity Act (AGOA), which offers Sub-Saharan African countries duty-free access to the US market for clothing and textile products. BEDCO, therefore, commissioned Mthente to explore the possibility of developing supply chain linkages between SMME’s and larger manufacturers - both Multinational Corporations and South African based manufacturers -- in Lesotho’s clothing and textile sector.

Research shows that SMME linkages with large manufacturers can be one of the fastest and most effective ways of upgrading domestic enterprises, facilitating transfer of technology, knowledge and skills, improving business and management practices, and facilitating access to markets and finance. Additionally, strong linkages can assist in promoting production efficiency, productivity growth and market diversification in local firms.  Linkages of this nature assist in ‘localising’ the industry.

Our work involved desk-top benchmark research, focus group workshops with SMMEs , and a training needs analysis amongst small garment producers on BEDCO Estates in Maseru, Mafeteng and Leribe. We also held stakeholder interviews with large manufacturers, including those producing for leading brands, such as GAP Inc, Walmart, and Old Navy. 

On BEDCO’s acceptance of the research recommendations, Mthente assisted with the development of pilot linkage programmes between ten garment firms and two large multi-national manufacturers.  

Website: www.bedco.org.ls