A study reveals that Mozambique’s second-hand clothing market provides over 200,000 jobs, supports a million individuals, and generates $35 million in annual taxes, making it crucial for the country’s economic landscape. It highlights the need for strategic collaboration to enhance the local textile industry while maintaining the benefits of the second-hand market.
The second-hand clothing industry in Mozambique serves as a critical support system, creating over 200,000 formal and informal jobs and aiding around one million individuals, according to a study by Consulting For Africa and Abalon Capital Limitada, commissioned by ADPP Mozambique. The findings emphasize that this sector is vital for the nation’s economy and daily living, acting as a catalyst for economic growth.
The research highlights that established sellers earn an average of $650 monthly, significantly surpassing the national minimum wage of $90. Moreover, this industry meets the basic clothing needs of approximately 80% of the population, generating $35 million annually in taxes from imports.
Second-hand clothing vendors, predominantly women and youth, are prevalent in urban markets, where their merchandise functions alongside food sales. The study estimates that Mozambique imports about 36,750 tonnes of second-hand clothing per year, with a demand growth rate of 3.5%. Notably, each tonne of imported clothing supports around 7.8 jobs, both directly and indirectly.
Given Mozambique’s rank of 183rd out of 191 in the United Nations Human Development Index and a 25% unemployment rate, the study underscores the significance of the second-hand clothing industry as a major provider of clothing, jobs, and tax revenue. A disruption in this market could severely impact those already grappling with high poverty levels, illustrating the complexity of revitalizing Africa’s textile industry.
The findings advocate for considerable investment to boost local garment production and competitiveness against leading countries like China and India. The report suggests that rather than opposing forces, the second-hand clothing market and local textile industries can coexist beneficially.
Forecasts indicate that the second-hand clothing market will remain the primary source of affordable apparel in Mozambique, especially given the projected stagnation in GDP growth over the next decade. The report calls upon African nations to seek collaborative strategies to enhance their competitive advantages rather than focusing solely on the constraints of second-hand importation.
The second-hand clothing industry is a vital component of Mozambique’s economy, generating significant employment opportunities and meeting the clothing needs of the majority of the population. It is essential for public finances and acts as a lifeline for many, especially as the country grapples with high unemployment and poverty levels. Collaboration between sectors may provide a pathway for sustainable development in Mozambique’s textile landscape.
Original Source: clubofmozambique.com
