A study commissioned by ADPP Mozambique reveals that the second-hand clothing industry provides over 200,000 jobs and crucial support to one million people in Mozambique. The sector generates higher earnings than the minimum wage and contributes significantly to public finances. It emphasizes the need for local production investment while advocating for collaboration between second-hand and local textile industries to ensure sustainability and economic growth.
A recent study conducted by Consulting For Africa and Abalon Capital, commissioned by ADPP Mozambique, reveals the significant impact of the second-hand clothing industry in Mozambique. This sector provides more than 200,000 jobs, directly or indirectly supporting roughly one million individuals. As a critical aspect of the nation’s economy, second-hand clothing serves as a lifeline for many, particularly women and youth, amid prevalent poverty.
The report notes that established sellers in the second-hand clothing market earn an average of $650 (€598) per month, significantly higher than the national minimum wage of $90 (€83). With at least 80% of the population relying on this industry for basic clothing needs, the sector contributes approximately $35 million (€32.2 million) in yearly taxes from imported garments.
In urban markets across Mozambique, second-hand clothing sales are a staple, often alongside food sales. The demand for second-hand clothing has increased, with estimates indicating an importation of around 36,750 tonnes annually. The study suggests that each tonne of second-hand clothing generates about 7.8 jobs, highlighting its role in alleviating poverty.
The findings underscore the critical nature of this industry in a country where approximately 25% of the population remains unemployed, ranking 183rd out of 191 on the United Nations Human Development Index. Disruptions to the second-hand clothing market could severely impact a vulnerable population, illustrating the necessity for a comprehensive understanding of the local textile sector.
The report conveys that revitalizing Africa’s textile market requires a multifaceted approach. It emphasizes the need for substantial investment in local production to compete against major garment manufacturing nations such as China, India, and Bangladesh. Furthermore, it advocates for collaboration between the second-hand clothing trade and local textile industries, suggesting they can coexist beneficially.
Brian Mangwiro from Abalon Capital posits that without notable economic growth, the second-hand clothing sector will remain the predominant source of affordable apparel for Mozambicans over the next decade. Rather than restricting the import of second-hand clothing, African countries should pursue strategic partnerships to enhance their competitive strengths. ADPP Mozambique, the commissioning organization, has been actively supporting various humanitarian efforts in the country since 1982, impacting roughly 8.2 million individuals annually.
The study highlights the importance of the second-hand clothing industry in Mozambique as a vital source of employment and affordable clothing for the population. It stresses the need for investments in local manufacturing to enhance competition in the textile market while suggesting that the second-hand trade and local industries can benefit from collaborative efforts. This approach could help address the significant economic challenges facing Mozambique.
Original Source: clubofmozambique.com