Trade unions want the government to ban offshore e-commerce retailers, among them
Temu and Shein, which have gained a foothold in South Africa’s market.
The campaign is being spearheaded by the South African Clothing and Textile Workers Union (Sactwu), an affiliate of Cosatu. If the proposal is adopted, consumers would no longer be able to buy goods from online retail platforms such as Temu and Shein.
Membinkosi Vilina, Sactwu’s deputy general-secretary, said the government needed to intervene to protect the clothing and textile industries from total collapse.
“We are clear when we say that these offshore companies have done severe damage to the local industry,” Villina said. “Not only in the textile sector but in the other sectors as well — furniture, jewellery and other industries.
“We can’t sit back and accept the status quo. If there are no measures implemented, by 2030 we would have lost well over 30 000 jobs in the clothing, textile and footwear sectors.”
He said established retailers were also closing because they could not cope with competition from offshore platforms.
“We do not receive anything as a country from these offshore companies. They sell at ridiculous prices. The industry is facing pressure and many local retailers are closing shop. Thousands of workers will lose their jobs and we can’t afford that.
“Government must investigate the dumping done by these offshore e-commerce retailers. Sars [South African Revenue Service] must tighten its laws. But the first price is the total banning of these companies,” he said.
A recent report puts Shein and Temu’s combined sales at more than R7 billion in the 2024 financial year. In its high-growth scenario, the report by the Localisation Support Fund projects R6.2 billion in lost local manufacturing sales and up to 34 700 retail and manufacturing jobs displaced by 2030.
The 15th Cosatu national elective congress also resolved to support its affiliate’s campaign against offshore e-commerce retailers.
“Delegates endorsed the resolution to campaign for the banning of offshore online shopping giants Shein and Temu to facilitate support for the local market, in turn stimulate job creation,” the federation said.