A recent report spearheaded by Consulting For Africa (CFA) and Abalon Capital Limitada, under the commission of ADPP Mozambique, has brought to light the indispensable contributions of the second-hand clothing (SHC) industry within Mozambique’s socio-economic landscape.
The study underscores the SHC sector as a crucial pillar supporting the nation’s economy and societal well-being, providing much-needed employment and essential clothing to the populace.
The research findings are compelling, revealing that the SHC industry is a significant employer, generating over 200,000 formal and informal jobs that sustain more than a million livelihoods.
On average, established vendors within this sector earn around $650 monthly, a stark contrast to the national minimum wage of approximately $90 per month. Additionally, the industry caters to the basic clothing needs of at least 85% of Mozambique’s population and contributes about $35 million in taxes annually. These taxes are vital for funding essential social programs, including education and healthcare.
Mozambique ranks among the world’s poorest nations, positioned at 183 out of 191 countries on the United Nations Human Development Index. With an unemployment rate of about 25%, the SHC industry emerges as a lifeline, providing not only employment but also a significant source of affordable clothing and public revenue.
The report emphasizes that any disruption in this sector could have severe repercussions for a population already facing widespread poverty.
Entitled “Current Status of Mozambique’s Second-Hand Clothing Market: Opportunities and Challenges,” the report evaluates the global and local significance of the SHC industry. It highlights the necessity of considering the unique economic realities faced by nations in the Global South when discussing the SHC trade.
The findings also indicate that reviving Africa’s textile sector is a complex endeavor. It requires substantial investment to enhance local production capabilities and achieve a competitive edge against manufacturing giants like China, India, and Bangladesh.
Brian Mangwiro of Abalon Capital stresses the importance of recognizing the SHC sector’s role in sustaining livelihoods across Africa. He advocates for strategic solutions, such as cross-country collaborations, to strengthen competitive advantages rather than focusing solely on limiting SHC imports. This perspective points to the potential for both the SHC trade and local textile industries to coexist and flourish.
Madame Luisa Diogo, former Prime Minister of Mozambique and non-executive director of Absa Bank Group, lauded the report’s insights during its launch. She emphasized the sector’s role in providing dignity, opportunity, and substantial tax revenue for essential services.
Diogo articulated a vision for embracing the SHC trade as part of a broader green economy strategy, crucial for achieving Africa’s goals of poverty reduction, sustainable development, and inclusive growth.
The transformative impact of the SHC sector extends beyond economic benefits, particularly for marginalized groups such as women and youths. It offers employment opportunities, skills development, and livelihood support, consistent with findings from other major SHC markets like Ghana, Kenya, and Tanzania.
As discussions around SHC imports evolve, this report calls for informed policy dialogues addressing climate change, waste management, and environmental sustainability. Such discussions are vital to ensuring the long-term viability of the SHC sector and aligning global sustainability efforts with local economic realities, avoiding a zero-sum scenario.
