New Lesotho wool rule puts strain on trade relations

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Relations between Lesotho, South Africa and continental trade have come under the spotlight as Agri-SA throws its weight behind Lesotho wool and mohair farmers.

Lesotho recently introduced new regulations that require wool brokers in the country to be licensed in Lesotho and buy from there. However, South African brokers say the country has not met international certification processes for them to buy there.

Author of ‘Africa Is Open For Business’ Victor Kgomoeswana says the two countries should find a solution that will benefit farmers in both countries.

Kgomoeswana said, “The logical question to ask if I am President Cyril Ramaphosa is Ntate Tom why would you treat a South African company this way. He shouldn’t allow it to happen that the farmers are suddenly being forced to take out of the equation a South African player. If the producers are getting a higher price from the Chinese they wouldn’t have to be forced to do it because they will be selling to the guy who is offering the best price.”