The global trade in second-hand clothing (SHC) is not just a trend, it’s a powerful engine of economic growth, particularly in Africa. A new report by Oxford Economics, commissioned by Humana People to People and Sympany+, reveals the substantial impact of this industry on the GDP and job market in Ghana, Kenya, and Mozambique.
The report, titled “The Socio-Economic Impact of Second-Hand Clothes in Africa and the EU27+,” sheds light on the sector’s vital role in a circular textile economy. In 2023 alone, SHC imports from the EU27+ contributed an estimated $76 million to Ghana’s GDP, supporting at least 65,000 formal and informal jobs. Kenya saw a $17 million contribution ($9.2 million directly) and Mozambique received $10.7 million ($2.7 million directly) from the SHC trade. These numbers highlight the sector’s crucial role in fostering economic development and job creation across these African nations.
The report underscores the diverse range of jobs supported by the SHC trade, from wholesale importing to transportation, retailing, and tailoring. These opportunities are particularly beneficial for women and youth, with 77% of interviewed informal retailers in Ghana, Kenya, and Mozambique being women and approximately 70% under 45 years old.
The affordability of second-hand clothing is a major factor in its success, providing millions of people in Africa with access to quality garments while freeing up their limited income for other essential needs such as food, healthcare, and education. This affordability factor plays a crucial role in improving living standards and contributing to poverty alleviation.
The report also acknowledges the challenges faced by the SHC sector, particularly high import tariffs on second-hand clothing, which can undermine competitiveness. These tariffs, instead of promoting local manufacturing, can lead to increased imports of cheaper, lower-quality fast fashion from China, resulting in significant environmental costs.
The report emphasizes the need for government support and policy interventions to strengthen the SHC sector and its potential for sustainable development. Recommendations include:
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Lowering import tariffs:
This would create a more competitive environment for SHC importers and traders.*
Investing in infrastructure and technology:
This would enhance waste management systems and improve sorting capabilities.*
Supporting the informal workforce:
Policy measures should be implemented to provide formal recognition and opportunities for those working in the informal sector.*
Partnerships with businesses:
Collaboration between government and businesses can foster innovation and sustainable practices within the SHC industry.By implementing these recommendations, governments can play a vital role in unleashing the potential of the second-hand clothing sector to create jobs, reduce poverty, and promote a more sustainable textile industry across Africa. The SHC sector presents a unique opportunity for economic growth, environmental protection, and social upliftment, making it a crucial component of Africa’s green economy and a powerful driver of sustainable development.
