Business Reporter THE African Continental Free Trade Area (AfCFTA) — a continent-wide trade pact designed to create a market of more than 1,3 billion people — has adopted a protocol banning trade in second-hand clothes in Africa as part of efforts to boost the textile industry. The protocol was adopted during the Second Ministerial Retreat […]
Business Reporter
THE African Continental Free Trade Area (AfCFTA) — a continent-wide trade pact designed to create a market of more than 1,3 billion people — has adopted a protocol banning trade in second-hand clothes in Africa as part of efforts to boost the textile industry.
The protocol was adopted during the Second Ministerial Retreat of the Council of Ministers on the AfCFTA held in Nairobi, Kenya, recently to assess progress in the implementation of the pact.
Trade in second-hand clothes is a big business in Zimbabwe, particularly in the informal sector.
Zimbabwe banned the importation of second-hand clothes in 2015 to protect the local textile industry and encourage value addition. Restrictions were, however, eased following an outcry from vendors’ associations, whose members survive on the business.
Imports are now controlled.
Traders ordinarily source bales of second-hand clothes from Tanzania, Mozambique, South Africa and Zambia for as little as US$150, while profits can be as much as US$500.
Due to import controls, the bales are often smuggled into the country using undesignated entry points.
Held under the theme “The Role of the Private Sector in the Implementation of the AfCFTA: Own and Drive AfCFTA”, the Council of Ministers’ meeting also discussed the outstanding rules of origin on textiles and clothing, estimated tariff revenue losses and the adjustment facility allocations, as well as proposals on front-loading liberalisation of trade in basic agricultural products.
AfCFTA secretary-general Mr Wamkele Mene said the decision to forbid trade in second-hand clothes was an important step to encourage value-addition and industrialisation in Africa.
“The decision of the Council of Ministers is a strong message that our single market will not be used as a dumping ground for used clothes coming from outside Africa,” he said.
The move, he added, would significantly protect the African textile industry and promote investment.
Zimbabwe Textile Manufacturers’ Association chairperson Mr Admire Masenda said the protocol would revive the textile industry across the continent.
“The second-hand clothes have killed the textile industry; they are hurting us,” he said.
“If we are to be consistent with that aspiration, then second-hand clothes should not have a place in this country.
“Reviving the textile industry means
we are creating better jobs for the citizens, who should, in turn, be able to buy new clothes.”
Mr Masenda, who is also a director at the Association of Cotton Value Adders, said a study had shown that the United Kingdom alone dumps about 14 million tonnes of clothes in Africa per year, while about 200 000 jobs have been lost across the continent.
However, while the move has been cheered by industry, some informal vendors argue the ban would likely adversely affect their livelihoods.
Since 2016, the East African Community has pushed member states to buy clothes and shoes made in the region to boost industries.
Kenya, Uganda, Tanzania, Rwanda and Burundi were to phase out the second-hand clothes trade by 2019.
However, only Rwanda has implemented the plan, introducing high taxes on imports to deter trade.
Zimbabwe, as a cotton producer, used to have a thriving textile industry. Currently, the industry is facing challenges such as competition from imports and a lack of investments.
It is estimated that around 95 percent of textiles in Zimbabwe are imported. Zimbabwe exports about 85 percent of cotton lint since the local industry cannot absorb local output.
