The trade union federation COSATU insists on a complete ban on the Chinese online retail platforms Shein and Temu, warning that cheap imported clothing threatens thousands of jobs in South African manufacturing and retail.
This decision was made by the trade union federation 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 cautioned that the flooding of ultra-cheap goods undermines the positions of South African producers and sellers, 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 established that the rapid growth of these platforms has cost the local economy over 8,000 potential jobs between 2020 and 2024. These losses included R960 million in lost local factory sales, contributing to the loss of more than 2,800 manufacturing jobs and 5,200 retail positions.
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.