African Union Member States have been challenged to ban the importation of second-hand clothes to promote textile and apparel industry in the continent.
To transform the productive capacities of the textile and apparel industry in Africa, the member states have also been asked to develop innovation centres in the five (5) African regions to promote African fashion based on the common cultural identity.
The 14th African Union High Level Private Sector Forum held in Nairobi said, the ban on the importation of second-hand clothes should be on account of their harmful impact on the garments and apparels home industry and their health-related negative effects on people.
The forum called for investment of substantial budgetary resources in the garment and apparels sector while emulating the best practices of countries that have taken this path such as those in East Asia and other parts of the world.
The Africa Union Commission was called upon to promote the consumption of local African textiles through the integration of African fashion shows into major African events.
African designers were also asked to be consistent in their products to effectively compete on the international market and to promote offshoring of African Brands elsewhere on the continent.
The call to ban second-hand clothes poses a threat to large exporters such as China, the US, Europe and Canada who have benefitted at the expense of local manufacturers and businesses.
Over time, Kenya, along with Uganda, Tanzania, Rwanda and Burundi, had tried to phase out used clothing to boost local manufacturing. But the countries faced the threat of being removed from the Africa Growth and Opportunity Act (AGOA), which promotes trade by providing reduced or duty-free access to the American market.
Kenya, East Africa’s largest economy witnessed a heated debate over the ban of second-hand clothes (mitumba) in the run-up to 2022 general elections. Raila Odinga, a contender in the election proposed in his manifesto phasing out of mitumba imports to promote local textile industry.
His rival, William Ruto, who ended up winning the elections opposed the proporsal with leaders in his camp terming it a move that would render many traders in the business jobless.
A report by the Kenya National Bureau of Statistics shows that the sector employs approximately two million people, against a total labour extended force of 20.6 million, playing a crucial role in providing income for millions in Kenya.
Employees in the sector spread across its various levels of the value chain, from port to consumer. This chain covers handlers individuals involved in handling alterations, refinement and distribution of used clothes and footwear. It also trickles down to services like security and linkages like finance, insurance, transport, and research, among others.
Non-Tariff Barriers
At the forum, Members States were also called upon to adopt pro intra-African trade policies in food production by among other things removing Non-tariff Barriers (NTBs) that currently make imports from outside the continent costly compared to locally produced food.
On energy, the forum urged members to invest in essential energy infrastructure at the same time remove barriers to private investors with interest in this sector.
The forum urged the African Union Commission (AUC) to develop guidelines to accelerate mobilization of additional resources to accompany private sector actors to participate in IPPs within the energy sector in Africa.
Private Sector Actors were advised to develop a community of best practice sharing and networking amongst IPP enterprises in Africa.
Speaking at the forum, Albert M. Muchanga, the AU Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, called for increased investment in productivity if the African continent was to realise the full potential of its huge population and vast natural resources.
Muchanga observed that despite Africa having an almost equivalent population to China, Africa’s share of the global GDP was just 3 per cent compared to 18 per cent for China.
“Africa’s share of global trade is just 2.7 per cent as opposed to 20 per cent for China. The difference lies in productivity, productivity and more productivity,” said Amb. Muchanga.
In his remarks, EAC Secretary General Peter Mathuki urged African countries to promote local content within their economies to boost intra-African trade and the continent’s share of global trade, adding that there was a lot of potential for growth.
He urged African countries to establish their own annual economic forum where they could set the economic agenda for the continent, noting that whatever is developing the rest of the world comes from Africa even as the continent remains poor.