81304845-Expert Pool for the Support of Capacity Development in selected value chains to seize opportunities from EPA

The EU-SADC EPA was signed in 2016 to cover trade in goods between 27 EU member states and six SADC countries. The agreement provides SADC member states with 100% duty-free and quota-free market access into Europe for all originating products, while South Africa has 98.7% market access.

Since the signing of EU-SADC EAP, Lesotho developed a National EPA Implementation Plan (NEIP) to support value chain development, using international standards, strong marketing strategies and trade promotion. The NEIP identifies the need to support training of the relevant stakeholders in the sectors covered under the agreement. However, the country has not taken full advantage of the opportunities offered by the EPAs, and its trade with other SADC member states is very limited. For instance, most of Lesotho"s exports are textile and apparel products, with a large share of them destined for the USA under the African Growth and Opportunity Act (AGOA). Another considerable share of textiles and apparel are exported to South Africa under the SACU. Lesotho"s exports to the EU are almost exclusively dominated by diamonds (DG TRADE).

It is against this background that the EU and the BMZ are supporting a Joint Action; Lesotho Economic Growth, Job Creation and EPA Implementation Support Programme, which is part of the project on Cooperation for Enhancement of SADC Regional Economic Integration (CESARE III). The aim of the Action is two-fold; to support the implementation of SADC EPA in Lesotho and to support regional and international trade through the development of regional value chains in agro-processing and light industry. The duration of the Action is until September 2026,

The overall objective of the project is to foster Lesotho"s inclusive economic development and sustainable regional and international trade. The envisaged outcome is improved access to identified regional value chains, with a focus on two selected value chains in agro-processing (e.g. herbs, spices for medicinal purposes and cosmetics) and light industry (duck and goose feathers for duvets, pillows etc.). The project aims to achieve three outputs namely, 1) Increased capacity of the public and private sector to benefit from the EPA and seize trading opportunities; 2) Stakeholders in Lesotho and other selected SADC countries are capacitated to create an enabling environment for private sector development in selected regional value chains, and 3) Improved capacities of MSMEs to manage selected value chains within the framework of the EPA.