Imports of secondhand clothes and shoes into the East African Community will be phased out over the next three years in new measures adopted by political leaders to promote local industries and encourage trade among the six member states.

EAC heads of state endorsed a ban on the importation of used clothing and footware during the Summit held in Arusha Tanzania on March 2. They also made the importation of motor vehicles more stringent in a bid to promote local manufacturing and assembling, which is showing good promise especially in Uganda.

READ: EAC heads of state to ban used clothes and shoes imports

Partner states were also asked to consider banning export of raw hides and skins outside the EAC.

The EAC took the cue of banning used wears from Ghana, Egypt, Ethiopia, India and Vietnam where the move spawned vibrant local industries, which has saved foreign exchange from reduced imports.  

Livelihoods

According to Scolastica Odhiambo, an economics lecturer at Maseno University in Kenya, a phase out period of three years is very short as the ban is likely to affect people’s livelihood especially those informally employed as traders in the mitumba business. Also, it will not be enough time to allow the textile industries to transition adequately enough to absorb the demand for new clothes.

“The reason why people buy secondhand clothes in the region is because they are less expensive, good quality and offer variety,” said Dr Odhiambo.

“Regional textile industries do not have the capacity to meet current demand for clothing and their quality is assumed to be of a low standard. The industries need time to transition and meet this demand,” she added.

In Kenya, for example, only Bata Shoe Company manufactures shoes locally but they are mainly for school children and the middle class. The company also relies on imports to service the upper echelons of the market.

Dr Odhiambo said the EAC should give a five-year phase-out period and it should be done through quotas. The member states should also look into the issue off quality of clothes and shoes manufactured by our local industries and find a way to improve it before enacting the ban. 

“There is a need to conduct a study to establish who are the main beneficiaries of the secondhand clothes and shoes then the governments can put in place other measures like import substitutions that were there in the 1980s onwards,” she said adding that the governments should sensitise the public on why secondhand goods are not good for the economy.  

Betty Maina, Kenya’s Principal Secretary in the Ministry of EAC said the ban is meant to transition the region into an industrial bloc through a higher level of production quality and manufacturing practices. 

“It will benefit industries and increase access to locally manufactured products in the region while at the same time creating more employment opportunities,” said Ms Maina.

The EAC industrialisation policy approved by the EAC Summit provides a regional framework aimed at growing and expanding the manufacturing and small and medium enterprise (SME) business to create employment and income.

The policy proposes the establishment of regional industries to drive growth. It also emphasises strong linkages between industries and key sectors of the economy such as agriculture, infrastructure and energy.

The EAC is a net importer of manufactured products, thus there are opportunities for growth in the industrial sector.  

To help manufacturers develop their capacity, EAC governments have provided a number of policy incentives that include tax and Customs exemption, price control, preferential procurement and import classification.