Opinion: Banning second-hand imports doesn't solve East Africa's clothes problem
Banning the import of second-hand clothes is not the answer to reviving East Africa's textile industry. But the deal to phase out the imports also hands another political score to the US, writes DW's Isaac Mugabi.
The move to not ban the sale of second-hand clothing was a relief to petty traders. In 2015, Kenya, Rwanda, Uganda, and Tanzania agreed on a three-year plan to gradually phase out the importation of second-hand clothes and apparel from the United States in particular.
Taxes were increased exponentially on second-hand clothes to deter more imports and a complete ban was to take effect in 2019. But the ban would have come at a heavy price.
Sensing the danger, the Trump administration acted fast and issued an ultimatum for 23 February 2018, for these leaders to rescind their plan or face the consequences.
The US did this to protect its second-hand export sector. And on that date before the ultimatum expired, leaders from the East Africa region, with the exception of Rwanda's Paul Kagame, met in Kampala to discuss the repercussions. In the end they caved in to US demands.
However, the trade deficit for many African countries is instantly recognizable. Imports from Rwanda, Tanzania, and Uganda to the US totaled $43 million (€34 million) in 2016, while US exports to the same countries amounted to $281 million, according to figures from the office of the United States Trade Representative (USTR).
This is not fair trade as preached by the Americans and Europeans, and this is why proponents of this ban argue that these countries have not benefitted much from the African Growth and Opportunity Act (AGOA), a brainchild of former US President George W. Bush, that was meant to enable countries in sub Saharan Africa to export textiles to the United States. AGOA ironically ended up benefitting the United States.
A ban on second-hand clothes is premised on the fact that promoting East Africa's textile industries will provide thousands of jobs. And with this idea at the back of their minds, the leaders wanted to bring an end to the protectionist policy being pushed by the Trump administration. Now that they have swallowed the bitter pill, it's a partial victory for the Trump administration and business will continue as usual.
To understand the effect of such a ban if it was to be imposed one has to be conversant with the economic situation and social dynamics of ordinary people in the three countries. Firstly, downtown markets that serve as the main hubs of second-hand clothes and shoes employ thousands and are a source of much-needed revenue for local governments. Millions in taxes are collected on a daily basis which in return finance projects and other infrastructure that the people also need.
And besides that, both the poor and the rich buy from these markets, with the latter preferring to use middlemen who do the shopping for them. The common denominator is the quest for quality brands from well-known designers like Yves Saint Laurent, Gucci, and Dolce & Gabbana etc.
Many consumers in Africa shun new products from China and other countries because of their perceived poor quality. Secondly, as much as the struggle for self-dependence and living a dignified life is understandably the way to go – countries in East Africa don't have enough factories that that can satisfy the demand for stylish clothes.
Africa's celebrated designers also have challenges catering to all styles and wishes. It will take some time before Africans start appreciating the work of their own fashion designers.
In addition to that, many Africans live in abject poverty, and in rural areas, people live off their small plots of land. How can they afford new garments if survival is another daily struggle?
At a recent leadership retreat in Rwanda President Paul Kagame, who never minces his words, put his city mayors to task to explain why there were malnourished children who were not attending school in some areas.
In Rwanda, the government projected that a ban on second-hand clothes would create at least 25,000 jobs. But this figure could be much lower than the number of people who actually feed their families by selling second-hand clothes. In the near future if Kagame was to impose the ban on second-hand clothes perhaps Rwandans would comply because they are known to obey directives from their leaders. But in neighboring Uganda, if the country's president Yoweri Museveni was to impose such a ban the story would be different.
For many consumers, affordability is what matters most and this is not the time for their governments to start thinking otherwise. In a continent where many people still live on under one dollar day, a second-hand clothes ban creats more problems than solutions.
Read related news articles
Kenya: 4th AmCham business summit to advocate for enhanced partnership and investment In US-East Africa trade
The fourth edition of the regional American Chamber of Commerce Kenya (AmCham) Business Summit, the premier platform for strengthening bilateral trade and investment between the United States, Kenya, and East Africa is set to be held on April 24–25, 2024, in Nairobi, Kenya. Kenya’s President William Ruto is confirmed as Chief Guest, leading a government delegation to the summit that aims to expand commercial opportunities and markets....
19 March 2024
US President Biden to welcome Kenyan President Ruto to the White House in May
President Joe Biden plans to welcome Kenyan President William Ruto to the White House in May, hosting a state visit after reneging on his promise to visit Africa last year. White House press secretary Karine Jean-Pierre said Friday that the visit set for May 23 will mark the 60th anniversary of U.S.-Kenya diplomatic relations and "celebrate a partnership that is delivering for the people" of both countries while affirming "our strategic...
18 February 2024
'Nigeria missing as Kenya, Ghana tap AGOA opportunities to boost foreign exchange earnings'
Africa’s biggest economy is still failing to tap the opportunities that the African Growth and Opportunity Act (AGOA) present to boost its foreign exchange, amid acute dollar shortages. The AGOA has been on for over twenty-three years as it was enacted in 2020. In 2015, the program was modernised and extended to 2025, implying that there are only about 15 months before the window closes. Some countries have taken advantage of the AGOA more...
05 February 2024
Uganda's AGOA suspension
Uganda's recent suspension from the preferential trade arrangement known as the African Growth Opportunity Act (AGOA) by the United States has undoubtedly posed a challenge, potentially rendering the the East African country's products less competitive in the U.S market. However, amid this storm, the resilience and quality of Ugandan products could serve as a sturdy anchor, allowing the East African nation to weather the adverse effects of...
13 January 2024
CTI and CCA coming together to develop a US-Tanzania trade and investment strategy
The Confederation of Tanzania Industries (CTI) has partnered with the Corporate Council on Africa (CCA) to develop a strategic approach to increase US-Tanzania trade and investments. The call was made by Ambassador Elsie Kanza, the Tanzanian Ambassador to the US. Among many other things, Ambassador Kanza tasked CTI to bring more visibility and awareness to the opportunities to expand Trade and investment between Tanzania and the USA under the...
13 November 2023
'Can Uganda wiggle out of AGOA puzzle?'
Uganda faces the possibility of being removed from the African Growth and Opportunity Act (AGOA) beneficiary states thanks in no small part to what the United States calls human rights violations. This comes hot on the heels of the recent enactment of anti- homosexuality legislation in Uganda. The programme offers duty-free access to the world’s largest economy for Sub-Saharan African countries that meet democratic criteria, which is...
12 November 2023
Kenya-US to deepen ICT, apparel and agriculture trade
Kenya and United States are in talks to identify areas of interest in information communication technology (ICT) sector that can interest US firms. A meeting between The US Ambassador to Kenya, Megan Whitman, and the Cabinet Secretary for Investments, Trade, and Industry Rebecca Miano, the states sought cooperation in six key areas. The meeting laid the groundwork for an enhanced collaboration between Kenya and the United States in...
09 November 2023
Uganda criticises US plan to exclude it from duty-free trade programme
Uganda on Wednesday criticised a US move to eject it and other African countries from accessing a tariff-free trade programme, saying the action was to punish African countries that are resisting the imposition of the West's cultural values. US President Joe Biden said on Monday that he intended to end the participation of Uganda, Gabon, Niger and the Central African Republic in the African Growth and Opportunity Act (AGOA) trade...
05 November 2023
New deal for African, US companies to partner under AfCFTA
African and US companies will soon enjoy a partnership of trading and investment building on provisions provided under the African Continental Free Trade Agreement (AfCFTA). This is according to a new Memorandum of Understanding signed between the AfCFTA Secretariat and Corporate Council on Africa – an American organisation devoted to fostering US-Africa business relations – with an aim to increase private sector support and involvement...
04 November 2023
Notice of intention to terminate AGOA preferences for Uganda, Gabon, Niger and the Central African Republic, reinstate Mauritania
Dear Mr. Speaker: (Dear Madam President:) In accordance with section 506A(a)(3)(B) of the Trade Act of 1974, as amended (19 U.S.C. 2466a(a)(3)(B)), I am providing advance notification of my intent to terminate the designation of the Central African Republic, the Gabonese Republic (Gabon), Niger, and the Republic of Uganda (Uganda) as beneficiary sub-Saharan African countries under the African Growth and Opportunity Act (AGOA). I...
31 October 2023
Kenya President Ruto joins US-Kenya business roadshow in San Francisco
Kenya's President William Ruto will address leading US technology companies and investors on Friday at the US-Kenya Business Roadshow in San Francisco organised by the American government’s Prosper Africa initiative. The roadshow - also co-organised by the US Embassy in Nairobi - highlights the business and investment potential in Kenya’s booming tech sector, a statement from the US Embassy in Kenya said. The event is part of a...
15 September 2023