The Congress of South African Trade Unions (COSATU) has resolved to campaign for a ban on international retail platforms Shein and Temu in South Africa, following concerns over their impact on local jobs and industries. The decision was officially adopted at COSATU’s 15th National Congress after the Southern African Clothing and Textile Workers’ Union (SACTWU) raised alarms about the threat posed by cheap imported clothing to local manufacturers and retailers.
A 2024 study by the Localisation Support Fund found that Shein and Temu accounted for approximately R7.3 billion in South African sales last year. This equates to 3.6% of the country’s clothing, textile and footwear market and makes up an estimated 37% of online retail clothing sales.
According to reports referencing the same study, the growth of these platforms has led to significant job displacement. Estimates suggest that over 8,000 potential jobs were lost between 2020 and 2024 due to lost sales to Shein and Temu. BusinessTech detailed the impact further, citing R960 million in lost manufacturing sales and displacement of 2,818 manufacturing jobs alongside 5,282 retail jobs within that period.
Mthobisi Nozulela of Daily Voice quoted the union saying, “COSATU has resolved to campaign for a ban on Shein and Temu.” The move frames the campaign as a necessary measure to protect local manufacturing and retail employment.
The rise of these Chinese-based e-commerce platforms has disrupted South Africa’s traditional clothing and textile sectors, intensifying ongoing debates about the balance between consumer choice, market competition, and the protection of local jobs. COSATU’s campaign reflects broader concerns within organised labour about the sustainability of South African manufacturing in the face of growing cross-border online retail.
Currently, no government ban on Shein or Temu has been implemented. COSATU’s resolution marks the beginning of a formal push to influence policy aimed at limiting these platforms’ operations in South Africa.
The Cape Flats News will follow developments closely and update readers as COSATU advances its campaign and government responses emerge.