Investment opportunities in knitted fabric mill

Lesotho’s garment sector produces approximately 90 knitted garments annually. It is estimated that Lesotho consumes between 22,000 and 26,000 metric tons of knitted fabric per year. Garments from knitted fabric are produced by 33 factories which collectively employ about 22,000 workers. An opportunity exists to establish knit mills to support the local garment industry in order to satisfy international market access conditions which demand a vertically integrated garment industry for continued access into these markets.

Accessories and packaging material

Approximately 90 million knitted garments and 26 million pairs of jeans are produced by Lesotho’s garment industry per year. It is estimated that 220 metric tons of knitted trims and accessories such as collars, ribbed cuffs, and hems are used by the garment industry per annum. In addition, over 20 million pieces of packaging materials are consumed by the industry each year.

Knitwear and jeans manufacturing companies in Lesotho produce large volumes of garments mainly for the US market. These garments require a lot of finishing accessories which are currently imported into Lesotho. While some cartons required for packing are manufactured in Lesotho, most of the packaging materials are imports.

Opportunities exist to manufacture finishing accessories including zips and buttons designed to different customer specifications as well as packaging materials which will provide a complete range of packaging products for the local and export markets.