Lesotho offers a cost-competitive, SACU-integrated base for Tier‑2/3 automotive components and selective SKD/light assembly serving South African OEM hubs and growing AfCFTA markets. In 2025, the United States imposed sectoral tariffs on automobiles and specified auto parts under Section 232 measures that apply to South Africa and, by extension, SACU suppliers integrated into South Africa’s value chains. These developments heighten the case for regional localisation and supply-chain risk management under SAAM/APDP frameworks.

Lesotho Policy Priorities – Cluster and Supplier Development Lesotho’s policy stance is to consolidate and deepen a Tier‑2/3 supplier cluster anchored around the regionally established Tier‑1 investors (e.g. Adient) to support South African OEM pipelines. Priorities include: (i) localisation alignment with SAAM/APDP – qualifying cross‑border suppliers into South African programmes (local content, traceability, compliance) consistent with SAAM pillars on localisation, technology and skills, and market development; (ii) SACU trade‑facilitation for JIT/JIS – streamlining cross‑border movements on the Maseru–Gauteng, Eastern Cape Kwazulu Natal corridors and utilising marine port gateways for export; (iii) investment facilitation and aftercare via LNDC (serviced factory shells, permits facilitation, coordinated aftercare); (iv) skills, standards and quality systems – aligning TVET/upskilling and plant‑readiness with SAAM’s technology and skills pillar and OEM quality regimes; and (v) risk management in light of U.S. Section 232 – monitoring tariff developments that affect South Africa‑linked value chains and prioritising market diversification/regionalisation to reduce exposure to single trade lanes.