Secondhand Clothing and the Future of African Industrialisation: Revitalizing the Cotton, Textile, and Apparel (CTA) Value Chain Webinar

Policy brief Vol. 3 2025

Africa is at a crossroads where the impacts of global consumption intersect with its development trajectory. One of the most visible examples of this is the continent’s dependency on secondhand clothing (SHC) imports, which, although beneficial for affordability and informal sector employment, severely undermine Africa’s local cotton, textile, and apparel (CTA) value chains.

Critics argue SHC imports hinder domestic production, lead to industrial stagnation, and pose environmental and cultural threats. The deregulation of the 1980s and 1990s—via structural adjustment programmes—flooded African markets with cheap, often low-quality used garments. While this has short-term benefits for poor consumers, it has long-term negative impacts on local industrial development.

Historical Context of Africa’s CTA Industry

1. Post-Independence Industrial Growth

In the 1960s and 1970s, countries like Nigeria, Ghana, and Ethiopia developed thriving textile sectors as part of broader state-led industrial strategies. These industries:

• Created jobs and enhanced national pride.
• Supported local cotton production.
• Played a key role in value-added manufacturing.
•  Structural Adjustment and Liberalisation

In the 1980s–1990s, IMF and World Bank programmes led to:

• Liberalisation of imports (including SHC).
• Removal of subsidies for local producers.
• Deindustrialisation, factory closures, and unemployment.

Example: Nigeria’s textile workforce fell from 450,000 in the 1980s to negligible numbers by 2021 (UNIDO).

Implications of Secondhand Clothing in Africa

1.  Economic Impacts

• SHC supports informal employment (vendors, tailors, recyclers).
• However, it undercuts domestic clothing prices, deterring investment in local production.
• Leads to deindustrialisation and loss of export potential.
•  Social and Cultural Impacts

• SHC improves fashion access for the poor but fosters dependency on external supply chains.
• Undermines local identity and traditional dress cultures.
• Raises health concerns due to unsanitary imports.
•  Environmental Impacts

• A large portion of SHC imports is unusable, ending up in landfills.
• SHC imports contribute to pollution and greenhouse gas emissions.
• Lack of circular economy frameworks worsens the problem.
•  Policy and Trade Impacts

• Governments struggle to balance affordability with industry protection.
• SHC bans have triggered diplomatic tensions, e.g., U.S. threatened AGOA sanctions on EAC countries.
• SHC imports risk derailing AfCFTA goals for industrialisation and intra-African value chains.
•  Diplomatic and Trade Challenges

• Africa’s attempts to restrict SHC face pushback under global trade rules.
• Trade-offs between domestic industrial policy and foreign trade relations remain unresolved.

Factors That Impacted the African Clothing Industry

1. Income Decline: Reduced consumer purchasing power discouraged local clothing purchases.
2. Privatisation Failures: Rent-seeking behaviour and poor management led to factory collapses.
3. Asian Competition: Inexpensive Asian imports—backed by efficient production—undermined African manufacturers.
4. Energy Shortages: Inconsistent power supply raised production costs.
5. Policy Inconsistencies: Shifting regulations deterred long-term investment.
6. Lack of Finance and Infrastructure: MSMEs struggled without adequate support.

Sustainable Fashion and the Circular Economy

1. Indigenous Sustainability Practices

African textile traditions have long used natural and sustainable materials (e.g., bark cloth, Aso Oke, Shweshwe). Modern social enterprises are reviving these traditions through upcycling, recycling, and export.

• Key Sustainability Challenges

• High water and chemical use in cotton farming.
• Labour exploitation in informal sectors.
• Reliance on fossil fuels for logistics and production.
• Weak regulation and lack of eco-friendly technologies.

Reviving the Local Industry: Strategic Recommendations

To compete with SHC and revive the CTA value chain, Africa must undertake a combination of policy reform, investment mobilisation, and cultural reorientation.

1. Balanced Trade Policies

• Tariffs, quotas, and quality controls must balance affordability with protection.
• Phased import restrictions are more effective than abrupt bans.
• Public education campaigns should promote local fashion.
• Infrastructure Investment

• Expand industrial parks, logistics hubs, and energy access.
• Support digital tools for trade and manufacturing.
• Financial Access
• Targeted financing for MSMEs via:
  • Low-cost loans
  • Grants and credit guarantees
  • Equity investment for innovation
• Public-Private Partnerships
• Collaboration between governments, investors, and donors can:
  • Raise funds
  • Improve efficiency
  • Support trade logistics and infrastructure
• Regional Cooperation under AfCFTA

• Harmonise standards, regulations, and origin rules.
• Build regional supply chains (e.g., cotton from Mali processed in Ghana and sewn in Kenya).
• Use digital platforms to promote intra-African trade.
• Promoting Sustainable Manufacturing

• Invest in energy-efficient technologies.
• Introduce circular production models.
• Support R&D and eco-innovation.

Competing with Secondhand Imports: Case Studies and Data

Country Highlights

• Kenya: Gikomba Market generates large revenues and employment but saturates the market with SHC.
• Rwanda: Phased out SHC through the Made-in-Rwanda campaign, despite U.S. trade backlash.

Trade Data (2019–2023)

• Kenya imported over $195M in SHC by 2023.
• Uganda saw a 23% rise in SHC imports over five years.
• New clothing imports are rising across East and Southern Africa, e.g., Kenya, Angola, Tanzania.
• This reflects growing urbanisation, consumer demand, and limited local production capacity.

Call to Action

“Secondhand clothing is not our enemy. It is a mirror reflecting where our industries and policies fall short.”

Africa must move from passive consumption to active production by investing in factories, value chains, and circular systems. The Call to Action includes:

1. Consumer Awareness: Shift mindsets toward locally produced clothing and pride in African fashion.
2. Infrastructure Development: Prioritise logistics, energy, and industrial facilities.
3. Access to Finance: Provide tailored financial products to MSMEs.
4. Stakeholder Collaboration: Unite actors across the supply chain in co-creating solutions.

Policy Recommendations

1. Rebuild the CTA Value Chain

• Invest in all links: cotton farming → textile processing → apparel manufacturing → retail.
• Strengthen domestic capacity for design, branding, and exports.
• Strengthen Public–Private Partnerships (PPPs)

• Foster innovation and sustainability.
• Improve infrastructure and trade logistics.
• Expand Modern Manufacturing
• Attract FDI and local capital into technologically advanced, eco-friendly facilities.
• Promote Cross-Sector Collaboration

• Link agriculture, fashion, technology, and logistics.
• Enable cotton producers to connect directly with apparel designers.
• Support SMEs and Local Entrepreneurs

• Encourage incubation, technical assistance, and procurement linkages.
• Prioritise women- and youth-owned enterprises for inclusive growth.
• Develop Circular Textile Policies

• Incentivise recycling and upcycling.
• Adopt Extended Producer Responsibility (EPR) frameworks to manage textile waste.

Conclusion

Africa’s clothing future depends on strategic trade policies, regional cooperation, and sustainable development. SHC should not be banned outright but managed through:

• Phased import restrictions tied to industry development goals.
• Support for MSMEs and tailoring cooperatives.
• Quality and sustainability standards for all imports under AfCFTA.

The dual-track approach—strengthening local production while regulating imports—can build a resilient, competitive, and inclusive textile sector. This transformation will require a continental commitment involving governments, private sector actors, civil society, and consumers alike.

Download the full Policy Brief here