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 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
AGOA boosts Kenya's textile exports to US, sector sees 7.2% growth
The African Growth and Opportunity Act (AGOA) has benefitted Kenya’s textile and apparel sector, leading to monthly exports to the tune of Sh4.5 billion, or Sh150 million per day, last year, according to a study by London-based Institute of Economic Affairs (IEA). The programme has had a positive impact on the country’s export-processing zones (EPZs), especially in the textile and garment sector. Kenya is the second-largest exporter of...
08 August 2023
Kenya's president meets US delegates on trade and investments
Kenyan President William Ruto has today held talks with US Trade Representative, Ambassador Katherine Tai. The discussions were based on US trade policy. Ruto said that the country is ready to strengthen the already existing relations between the two nations. "We will stretch our ties beyond the African Growth and Opportunity Act (AGOA) in the wake of advanced technology and climate change, for the full exploitation of our trade potential,"...
19 July 2023
US trade rep in Nairobi as Kenya's solo deals worry the EAC block [incl. Readouts]
The US trade representative is in Nairobi to co-lead a meeting that seeks Kenya's partnership in a fresh trade deal. The Trade and Investment Framework Agreement (TIFA Council) is pursuing various agreements even as regional peers express concern over Kenya's solo approach. Yesterday, Trade Representative, Katherine Tai met patron circle members of the American Chamber of Commerce-Kenya (AmCham Kenya) ahead of today's...
17 July 2023
US President Biden calls for repeal of Uganda’s anti-gay law, threatens sanctions
President Biden called for the immediate repeal of Uganda’s new Anti-Homosexuality Act [ download statement alongside] and warned of possible sanctions in a statement Monday, as his administration evaluates “the implications of this law on all aspects of U.S. engagement with Uganda.” “This shameful Act is the latest development in an alarming trend of human rights abuses and corruption in Uganda. The dangers...
30 May 2023
US boosts Kenya apparel industry with $55m in new trade deals
The US is giving Kenya $55 million for expansion of export processing zones in a move that will boost Nairobi’s apparel exports. US initiative Prosper Africa and the US Embassy announced the funding at the launch of the US-Kenya Business Roadshow held on April 25 in New York. The announcement was part of the commitments made by President Joe Biden at the US-Africa Leaders’ Summit last year. The funds will be channelled under USAid and...
29 April 2023
Why Africa, why Kenya? Remarks by US Ambassador to Kenya
Thank you, Scott, for the kind introduction. It is a pleasure to partner with the Prosper Africa initiative to drive investment in Kenya and countries across the African continent. I am happy to kick off our U.S.-Kenya Business Roadshow with all of you today, and to announce that we will be partnering with Prosper Africa throughout the year to engage businesses and investors in cities across the United States. Our next stops include San...
26 April 2023
Kenya-USA: Joint Statement on the third US-Kenya bilateral strategic dialogue [incl. VIDEO]
The text of the following statement was released by the Governments of the United States of America and the Kenya on the occasion of U.S.-Kenya Bilateral Strategic Dialogue in Washington, D.C. on April 24, 2023. Begin Text: The Governments of the United States of America and the Republic of Kenya held the third iteration of the U.S.-Kenya Bilateral Strategic Dialogue in Washington, D.C. on April 24, 2023. The U.S.-Kenya Strategic...
24 April 2023
Kenya: Manufacturers push for 15-year AGOA extension
Kenyan manufacturers have asked the Trade ministry to request Washington to extend the existing duty- and quota-free access to the expansive US market window for another 15 years as the two countries prepare for talks over a long-term bilateral trade deal. The Kenya Association of Manufacturers, the sector lobby, argues that uncertainty over the more than two decades-Growth and Opportunity Act (AGOA) deal, which expires in two years, is...
02 March 2023
Kenya and US complete first round of trade talks
Kenya and the United States have concluded the first round of Strategic Trade and Investment Partnership (STIP) that will form a basis for future bilateral engagements. The Kenyan delegation, led by Trade Principal Secretary Alfred K’Ombudo, hope that the five-day talks on the free trade agreement will bear fruits. The government has been scouting for areas of collaboration that will increase foreign direct investment, promote sustainable...
13 February 2023
Transparent, participatory process needed for US-Kenya Strategic Trade and Investment Partnership
U.S. and Kenyan officials are meeting this week in Washington for the first negotiating round of the U.S.-Kenya Strategic Trade and Investment Partnership (STIP). Public Citizen submitted recommendations for the U.S.-Kenya negotiations to USTR as part of its public comment process last year. Melinda St. Louis, Global Trade Watch director at Public Citizen, issued the following statement: “The U.S. and Kenyan governments...
08 February 2023
