Lesotho eyes stronger productive capacity under China zero-tariff policy

MASERU, May 19 (Xinhua) -- Lesotho must translate trade preferences under China's zero-tariff policy for African countries with diplomatic ties into productive capacity, a senior official said Monday.

Speaking at a briefing hosted by the Chinese Embassy in Maseru, Malineo Seboholi, trade director at Lesotho's Ministry of Trade, Industry and Business Development, said the country needed to improve its productive capacity to make better use of the trade preferences, adding that tariff elimination alone could not deliver economic transformation.

Seboholi called for technical support to help exporters meet Chinese market standards, investment in agro-processing and manufacturing, particularly in wool and mohair, logistics and trade facilitation to ease the constraints of Lesotho's landlocked geography, and skills development and technology transfer.

Wool and mohair, which dominate Lesotho's exports to China, were cited as an important area for value addition. Currently shipped largely in raw form, the commodities could create jobs and retain value through domestic processing, Seboholi said.

Yang Xiaokun, Chinese ambassador to Lesotho, offered a broader view of the policy's significance, saying that the policy would give African products a competitive edge and encourage Chinese and other investment in local processing.