Tiny landlocked Lesotho forecasts rapid expansion of its manufacturing sector thanks to a US trade deal that gives preferential treatment to exports from eligible sub-Saharan African countries.

Trade and Industry Minister Mpho Malie told Reuters in an interview yesterday the US African Growth and Opportunity Act (AGOA) had brought vibrancy to the economy of the kingdom long dependent on neighbouring South Africa. Under a new duty-free quota for least developed countries, the impoverished country of two million had also started exporting textiles to Canada, Malie said. Jobs in Lesotho?s manufacturing sector have jumped to 54,000 from 17,000 since textiles production targeting the US market began in earnest in late 2000, said Malie who is also minister responsible for cooperatives and marketing.

The mountainous kingdom surrounded completely by South Africa is often cited as one of AGOA?s success stories, selling trendy clothes to US stores like Gap, Kmart and

JC Penney. In 2002 it exported $318 million in clothes and textiles to the United States under AGOA, out of the $803.3 million earned from such exports by AGOA-eligible states. During that year, east African powerhouse Kenya earned only $129.2 million from textiles and apparel exports to America.

Other AGOA successes range from Mauritius to Ghana. ?We?ve made a lot of gains under AGOA. We expect to make further, faster progress still,? Malie added. Malie said Taiwan firm Nien Shein was investing $135 million in a new denim and fabric mill, which would further expand growth in the sector and deliver more jobs ? key to social and political stability in the kingdom.

Manufacturing has become the leading employer in Lesotho, replacing the government. It is a boon for the kingdom where drought has forced donor agencies to provide food handouts to thousands of people over the past two years.