The Cosatu federation of trade unions insists on a complete ban on the Chinese online retail platforms Shein and Temu, warning that cheap clothing imports threaten thousands of jobs in South Africa's manufacturing and retail sectors.
This decision was made by the federation of trade unions at its XV National Congress after the Southern African Clothing and Textile Workers’ Union (SACTWU) raised concerns about the impact of low-cost imports on local businesses.
SACTWU warned that the flood of ultra-cheap goods undermines the position of South African manufacturers and retailers, many of whom are already struggling to maintain operations.
According to a report by the Localisation Support Fund, in 2024, Shein and Temu collectively generated R7.3 billion in sales in South Africa. This amount accounted for 3.6% of the country's apparel, textile, and footwear market, as well as 37% of all online sales.
The report also found that the rapid growth of these platforms has cost the local economy over 8,000 potential jobs between 2020 and 2024. This included a loss of R960 million in local factory sales, which contributed to the disappearance of more than 2,800 jobs in manufacturing and 5,200 positions in retail.
The unions argue that the platforms benefit from loopholes in tax legislation, cheap overseas labor, and low transport costs, giving them an unfair advantage over local companies that cannot compete with their minimal prices.