A new report from Oxford Economics reveals that the second-hand clothing (SHC) sector is a powerful driver of economic growth and a vital contributor to green job creation across Europe and Africa. The report, titled “The Socio-Economic Impact of Second-Hand Clothes in Africa and the EU27+”, highlights the sector’s immense potential for a sustainable future.
In 2023, the SHC sector contributed an estimated €7 billion ( $7.6 billion ) to the GDP of the EU and UK (EU27+), with €3.0 billion ( $3.2 billion ) generated directly by the sector itself. Germany and the UK alone saw significant contributions of €670 million ( $720 million ) and €420 million ( $450 million ) respectively.
The sector also provided an estimated 150,000 jobs in the EU27+, with 110,000 being green jobs directly within the industry. Notably, these opportunities have been particularly beneficial for individuals with limited formal education. A significant majority (79%) of the workforce are women, and many jobs are created in lower-income countries like Bulgaria, Romania, and Poland.
This report is the first comprehensive analysis of the SHC sector’s value chain across two continents, offering valuable insights into its socio-economic impacts. It focuses specifically on the EU27+ and the African countries of Ghana, Kenya, and Mozambique.
The success of the SHC sector relies on a robust value chain connecting the Global North and the Global South. This chain generates economic value and green jobs at every stage, effectively channeling used clothing from the Global North to the Global South, where demand for affordable, high-quality garments is steadily increasing. By keeping clothes in circulation, the sector helps meet climate targets and protect the environment.
Beyond its economic contributions, the SHC sector also plays a critical role in poverty alleviation by creating employment and entrepreneurship opportunities for those who might otherwise be unemployed or underemployed. This empowers individuals to support their families.
In Ghana, second-hand clothing from the EU27+ contributed an estimated $76 million to the country’s GDP in 2023, of which $35 million was directly generated. The sector supported 65,000 formal and informal jobs in the country. Similar impacts were observed in Kenya and Mozambique, with contributions of $17 million and $10.7 million to their respective GDPs.
However, the report also highlights potential challenges. The fast fashion industry’s dominance, with giants like China producing vast quantities of cheaper, lower-quality garments, poses a threat to the SHC sector’s sustainability. The report calls for a strong regulatory framework to support the sector and ensure its competitive edge.
Discussions are scheduled to begin later this month at the EU level to finalize amendments to the Waste Framework Directive, which will impact the second-hand clothes trade. This report urges decision-makers to prioritize supporting textile reuse operators. With mandatory separate textile collection coming into force across the EU in January 2025, swift action is crucial to provide certainty and support for the sector.
Without decisive action to strengthen the EU’s SHC sector, its success in supporting European green policy goals, national climate targets in Africa, and the Sustainable Development Goals, particularly concerning poverty, women’s inclusion, and responsible consumption, could be jeopardized.
The report’s findings underscore the immense potential of the SHC sector to drive sustainable economic growth and create green jobs across continents. Policymakers must recognize the value of this industry and provide necessary support to unlock its full potential for a more resilient, circular economy that benefits both people and the planet.
