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Uganda implored to assess impact of proposed ban on second-hand clothes

Uganda has been urged to adopt a phased approach toward transitioning away from second-hand clothes before implementing an outright ban.

The request was raised during a policy dialogue, organized by the EPRC at Serena Hotel in November. It brought together participants from policy spheres, trade, clothes manufacturing, and the media. Ms. Aida Natabbi, a research analyst at EPRC, presented study findings on the status of the second-hand clothes subsector, noting that Uganda’s textile sub-sector is dominated by imports from China, Canada, US, and the UAE.

She noted that Uganda’s imports of worn clothing have been growing for the past years and surpassed importation of new clothes in 2010. In 2023, Uganda imported worn clothing worth USD 95.9 million, compared to USD 79.1 million worth of new clothes.

Overall, Uganda’s imports of second-hand clothes grew by 43 percent, from USD 61 million to USD 106 million between 2013 to 2022, a clear indication that demand for the same is still expanding. Not all the materials imported is used locally. Uganda re-exports used clothes in the region to DRC, Kenya, South Sudan, Rwanda among other countries.

However, it is the impact such a ban would have on the jobs and livelihoods that raised eyebrows. The EPRC analysis showed that employment in the sale of SHC grew, from 388,022 to 698,781 people between 2011 and 2021. Women and youth dominate the trade.

Issa Sekito, the Kampala traders’ association publicist, took note of the “the massive unemployment that will be created by the ban of second-hand clothes. While I support every government effort, I want the govt to ask clothes manufacturers to be honest tell govt what they can achieve.”

Second-hand apparel has for long been a controversial issue that any hint at banning them attracts fury from source countries and keen eye of the international press. Domestically, it attracts opposition from traders, consumers, and those employed in the same. President Yoweri Museveni has argued that a ban would revive the ailing textile industry in the country.

Traders selling second-hand clothes on Kampala streets. Photo/Courtesy

EAC MOVE

The move to ban second-hand clothes was adopted at the 17th Ordinary Summit of East African Community (EAC) Heads of State, in 2016 to develop local textile and leather industries. Only Rwanda has followed through to implement the ban. This year, President Museveni reaffirmed his commitment to the ban, claiming that second-hand clothes “are for dead people”.

“While the proposed ban is expected to strengthen the regional textile sector, it may cause short-term job losses, reduced import tax revenue, and increased imports of cheaper new clothes from low-cost producers in Asia,” the EPRC policy note says. “Uganda has delayed the ban due to local trader opposition and US diplomatic pressure.”

Policy Note: Phasing out second-hand clothes. opportunities and challenges for Uganda’s textile industry

EPRC Executive Director Dr Sarah Ssewanyana said a regulatory impact assessment for the sub-sector was needed to understand the wider impact of the proposed ban. She said it may cause short-term job losses, reduce import tax revenue, and increase imports of cheaper new clothes from China.

“Based on the facts, we know that the sector within the region is employing about 4.9 million persons, in the East African region. And this employment could be directly or indirectly [affected].”

Uganda’s attempts to revive the textile subsector has been a long battle, often dominating President Museveni’s speeches. Taxes incentives and money have been dished out to individuals and firms, but the results have been mostly a disappointment.

Denis Ainebyona, the commissioner for industry and technology, at Ministry of Trade, said the country must take a step and start producing the things we import.

“Can we build capacity to be where Turkey is, where Malysia is? I think it is possible to make steps. Somethings have changed. As a country, now we can make bedsheets, some of the trouser materials. If you go to Kapeeka, the story is changing. Why? Because the president has said let’s do it by ourselves.”

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