Cosatu backs call to ban Shein and Temu over local jobs

The Congress of South African Trade Unions (Cosatu) has backed a call for the government to ban international online shopping platforms Shein and Temu, amid concerns that their growing presence could put thousands of local jobs at risk.

The proposal was put forward by the Southern African Clothing and Textile Workers’ Union (Sactwu) during Cosatu’s 15th National Congress at Emperor’s Palace in Johannesburg on Wednesday, 15 October, according to Daily Maverick.

The union cited a 2025 study estimating that as many as 34 000 jobs in South Africa’s clothing, textile, footwear, leather and related industries could be threatened by 2030.

In a show of support for the proposal, Cosatu also urged its members to delete their Shein and Temu apps and commit to buying from local retailers.

During its presentation, Sactwu displayed placards illustrating products such as handbags and carpets, with figures indicating the potential number of jobs at risk in different industries.

Sactwu president Susan Khumalo told delegates that the platforms’ low prices and rapid growth were placing pressure on local manufacturers, retailers and workers.

‘If nothing is done, comrades, to change this, our city and our families will lose 34 000 jobs by 2030 as clothing and textile [industries], including the retailers,’ she said.

Khumalo argued that the platforms had gained a significant share of the South African market in a relatively short period, with their pricing putting pressure on wages, employee benefits and working conditions.

MyBroadband also reported on Cosatu’s support for the proposed ban, highlighting the union’s concerns about the effect of international e-commerce platforms on domestic employment and the local retail sector.

Shein, founded in China and headquartered in Singapore, entered the South African market in 2020, while Chinese-owned Temu launched locally in 2024.

Their online business models, which do not rely on traditional networks of physical stores, have helped them compete on price and reach consumers through aggressive marketing and high shipment volumes.

By the end of 2024, the two platforms had generated an estimated R7.3 billion in sales, accounting for 37.1% of South Africa’s online retail market for clothing, textiles, footwear and leather goods, as reported by Daily Maverick.

The growth has raised concerns among local retailers. In the second quarter of 2024, the Bureau for Economic Research recorded a decline in confidence among retailers of semi-durable goods, including clothing, footwear and textiles, from 68% in the first quarter to 38% in the second.

The bureau also warned that platforms such as Shein could place further pressure on domestic clothing retailers.

Tax changes have slowed growth

However, the platforms’ recent performance suggests their expansion may be slowing.

The South African Revenue Service (SARS) removed the previous tax exemptions on imported goods valued below R500 in 2025, changing the conditions under which low-value online purchases entered the country.

Shein’s annual growth slowed from between 30% and 50% to 11% in 2025, while Temu recorded average monthly declines of 42% over the same period.

Independent economic strategist and board adviser Refilwe Moloto questioned whether the projected 34 000 job losses remained accurate, given that the estimate was calculated before the tax changes took effect.

She also cautioned that banning the platforms outright could create unintended consequences, including encouraging unregulated trading and making it harder for authorities to collect taxes.

‘Protectionist measures of that nature are likely to encourage, below the table, irregular and non-regulated trading,’ Moloto stated.

She added that South Africa’s local clothing and textile sector faced broader structural challenges, including high energy costs, the decline of rail transport and administrative expenses.

These factors, she argued, affect local businesses’ operating costs and ability to compete with international sellers.

‘It is not Shein’s fault that they operate in a country that makes their inputs cheaper, and that’s something that the government may need to address,’ she said.

Sactwu maintains that the rapid growth of international shopping platforms threatens jobs and working conditions across several industries.

Moloto, however, argues that an outright ban could have economic and regulatory consequences, while broader domestic challenges also need to be addressed.

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Source: Daily Maverick and MyBroadband