Implications on a Proposed Ban of Second-hand Clothes Imports in EAC

This report analyzes the implications of the proposed ban on second-hand clothes imports within the East African Community (EAC) by 2019. It begins with an introduction to the topic, outlining the global trade of second-hand clothing and its impact on developing nations, particularly in Sub-Saharan Africa. The report examines the rationale behind the study, its aims, and objectives, including understanding the concept of second-hand clothing in East Africa, identifying the impact of charity clothes on recipient countries, and analyzing the policies developed by the EAC. The literature review explores the history and customer base of the second-hand clothing market in East Africa, the impacts of charity clothes on recipient countries, and policies developed by the EAC. Data analysis and thematic analysis are used to examine the impact of the ban on local textile manufacturers, EAC governments, and the overall EAC vision. The discussion delves into the African Growth and Opportunity Act (AGOA), the global context of second-hand clothing, and the situation in the EAC region. The report also covers how other countries address issues related to second-hand clothes imports, with a specific case study of Rwanda. The conclusion and recommendations provide insights into improving the clothing industry in East Africa, considering the complex interplay of economic, social, and policy factors. The report includes references and an appendix for further context.

Implications on a proposed Ban
of Second-hand Clothes imports
in East African Community by
2019

TABLE OF CONTENT
CHAPTER 1....................................................................................................................................1
INTRODUCTION...........................................................................................................................1
1.1 Overview of topic.............................................................................................................1
1.2 Rational of study...............................................................................................................2
1.3 Research aims and objectives...........................................................................................2
CHAPTER 2....................................................................................................................................4
LITERATURE REVIEW................................................................................................................4
Concept of second hand clothing in East Africa....................................................................4
Impact of charity clothes on the recipient countries ..............................................................5
Policies developed by East African community for banning the import of second-hand clothes
................................................................................................................................................6
CHAPTER 4....................................................................................................................................8
DATA ANALYSIS..........................................................................................................................8
4.1 Introduction......................................................................................................................8
4.2 Thematic analysis.............................................................................................................8
DISCUSSION................................................................................................................................16
4.1 The African Growth and Opportunity Act (AGOA)......................................................16
4.2 Second hand clothing (SHC) in the world......................................................................16
4.3 Second Hand Clothing in the EAC Region....................................................................17
Impact of the Ban within the EAC.......................................................................................17
The local textile manufacturers............................................................................................18
The EAC Governments........................................................................................................19
4.3.1. What is EAC’s Vision?..............................................................................................20
4.3.2 There is no ban on new clothing?................................................................................20
4.3.3. Different power relations in SHC trade......................................................................21
4.3.4. African countries have consistently failed to boost industrial production.................21
How are Other Countries in the World Addressing Issues Relating to SHC Imports?........21
The path taken by Rwanda...................................................................................................22
CHAPTER 5..................................................................................................................................23

CONCLUSION & RECOMMENDATIONS................................................................................23
REFERENCES..............................................................................................................................25
APPENDIX....................................................................................................................................27

CHAPTER 1
INTRODUCTION
In the present world there are many people who might be unaware about the concept of
charity. Many individuals are not aware about the hidden concept of the donation. In the many
economies second hand clothes are become huge trade, but very few people known about the
impact of this trade on recipient countries (Simon, 2017). On the global trade second-hand
clothing has grown dramatically in the past few years .There are many countries which
conducted different types of charities program and sell their donated items in the developing
nations. The Sub-Saharan countries are dominated of second hand clothes market. At the time of
debt crisis in the year of 1980. African countries had faced many types of problems and after that
this crisis they are not able to completive again in the international textile industries. According
to reports, in which it is stated that majority of Sub-Saharan Africans are wearing cast-off
European and American clothing. This estimation shown that how the market of second hand
goods have changes dramatically.
The present study is based on analyse the implication on a proposed Ban of Second hand
Clothes imports in East Africa by 2019 (Katende-Magezi, 2017). Under this present research,
researcher make focus on the impact of charity cloths on the recipient countries and policies
developed by East African community for banning the import of second-hand clothing. The
chapter of the topic is provided basic overview of the topic along with aims and objectives.
Lastly, structure of all the chapters are discussed briefly in the research work.
1.1 Overview of topic
Second hand cloths industry have very small portion of the trading in global market. On
the initial level it was a non profit activities but later it becomes a huge trade activities. There are
many people who make annual donation of their own cloths. In many developing economy it is
become the largest trade and sources of income. It provides huge opportunities for earning
money. On the other hand it creates problems for the developing nations. (Behuria, 2017). For
many people second hand clothing market is usually extremely cost effective and ideologies of
sustainability. In the African Countries it helps to people for getting low cost products and fulfil
their desires. For the Sub-Saharan's countries, this trading activities helps to maintained their
domestic requirements.
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However, there are some consequences also there which may creates impact on growth
and development of the Sub-Saharan countries. Due to rapidly increasing in import of the
country, Africa has to face many problems to maintained their own industries. Second hand
cloth market have slowly destroyed the major industries of the countries. In order to overcome
with this problem, East African Communities make implication of banning the import of second-
hand clothes. Thus, the present study has described implications of banned second hand cloths
market and to make assess that different polices which are developed by the East African
countries.
1.2 Rational of study
The present research has been made with an attempting to highlighting the hidden
concept of the Charity and second hand clothing market. There are many types of benefits and
consequences of this concept. Second hand clothing, under this process trader collect cloths from
the donation and sell them in developing countries (Behuria, 2017). For some people it is the
best method for recycling of the second hand cloths and help to poor people for accomplish their
basic needs. On the other hand due to this process, many textiles company in the Sub-Saharan
countries had lost their existences. There are many developed countries which involved in this
such as USA, UK and Canada. To overcome with these problems EAC try to imposing tariff on
second hand cloths.
Thus, From the research, researcher try to gain understanding about the impact of
charity clothes on the recipient countries and different ways in which developing countries get
effect this.
1.3 Research aims and objectives
Aim- “Implications on a proposed Ban of Second hand Clothes imports in East Africa by 2019”
Objectives-
 To understand the concept of second hand clothing in East Africa.
 To identify impact of charity clothes on the recipient countries.
 To analyse the policies developed by East African community for banning the import of
second-hand clothes.
 To provide recommendation for improving clothing industry in East Africa.
2

CHAPTER 2
LITERATURE REVIEW
Concept of second hand clothing in East Africa
The global trade of the second hand clothing has long history. Second hand clothing was
an important way of acquiring clothing. The customer base of second-hand clothing market is
usually extremely cost effective and promoted the ideologies of sustainability and
environmentalism. According to Katende-Magezi (2017) it is one of the best method for
recycling of used cloths. For many industries it is become the largest trade and way of earning
money. It also helps to other people who can not afford expensive cloths. There are many charity
organization which are conduct charities and encourages people for donate their old material.
Organization donate their material to poor counties where people can not buy fabric.
In the East Africa there are number of people who receive fabric from the west countries.
Most of the people are unaware about the actual concept of the second hand clothing in East
Africa. There is huge trade activities are involved.. According to the Behuria, (2017), market
share of the second hand clothing is rapidly increasing in the East Africa. There are numerous
shops are available for local people who buying low cost products at high quality.. Many
countries in Africa were in the grip of economic slowdown so market of the second hand
clothing is rapidly increased. Major players of the second hand clothing are African countries are
Canada, Europe and UK. In these countries there are number of people who make donation of
their cloths so they can help to other people. According to the research of AFRICA (2016), major
donation came from the those people who are frequently changing their styles so this the reason
they donate their material to other people.
All the types of charity which are collected by the developed countries and donated into
developing countries. Under this trade activities all the donated material are sold in the African
state. In those countries there is very low tariff are charged on the imported cloths, so it
becomes a business activity for the other developed nations. According to Holt and Littlewood
(2017) after 1980 financial recession the market of the second hand clothing rapidly increased in
the East Africa and it becomes a source of income for developed countries who suffered the most
from the recessions. In the developing nations such as Africa where poverty is wide-speared,
this concept is become very popular. They were getting low cost cloths as compare to their own
3

manufactured cloths. Most of the people are unaware about this concept and it brings many
types of consequence for the devolving nations. In the East Africa people are becoming habitual
about the western cloths and like to prefer to only that. It slowly demolishes their own textiles
industry. Although, the percentage of this business it very low but it may create huge impact on
the developing nations. In African regions there are limited number of shops who can produce
the high level of capacity of garments. Lack of capacity boost the market of second hand cloths.
Now this country is looking forward and try to improve the conditions of the clothing sector in
the countries.
Impact of charity clothes on the recipient countries
The major impact of the these type of cloths is that, it available at very low prices so it is
easily availed for the African countries. Most of the people who lived in African belongs to low
income so they can purchase such charity cloths. It creates impact on the culture of that natios.
People like to wear western cloths, because their own traditional cloths are not affordable for
them. According to Rivoli (2014), due to imported cloths, domestic firms are not able to
producing more fabric as demand of their product is not very high. It is observed that in many
sub-Saharan countries have slow growth rate in the textile industries because of the charity
cloths. People can not afford their own manufactured cloths so they moved to purchase western
cloths. It demolishes the country's economy. According to the Wu, Wall and Pearce (2014) the
market of second hand cloth very low but it creates huge impact on employment as well. If
people are not interested on the buying or not encouraging their own manufacturing units then it
leads to downfall in employment rate. Organization are not able to offers more jobs so ultimately
it creates negative impact on economy Citizen are able to get employment and they can't make
generate income. So it leads to downfall in the income and people are not modify their living
standard. According to Brooks (2013) Second hand clothing market is also created impact on
government's revenue. All the charity cloths are imported from the western countries and after
selling products all money are taken by the western structure so it creates problems in the
balance of payment which directly impact in the government's revenue. Along with this low tax
rate in also charged by the African government on the second hand cloths. Due to lack of the
proper government revenue, infrastructure and other essential facilities are not provided
developed by people. According to Oluwusi (2016) SHC is also made impact on the agricultural
market of the East African countries. Due to import of the cheap second hand cloths, cotton
4

industries of the countries are started demolished. There are number of cotton industries which
involved in cotton, if the industries are not able to make products so the agricultural activities are
not giving fruitful results. According to the Diamond (2016) there are some benefits are also
there. People which lived in African countries are belongs to the low income groups. So for them
it helps to full fill their basic needs. Along with this SHC also available at the cheap rate which
helps to people for getting affordable cloths. The market of the second hand clothing is also
support the number of people who are associated with this trade activities. It helps to African
people for generating income. For the short term these activities helps to people for generating
more financial gain but on the long term protective it creates problem for the countries and their
people. So it is important to make certain polices and producers. So East African countries can
make balance in their economy.
Policies developed by East African community for banning the import of second-hand clothes
There are many reasons found for banning the import of second hand cloths in the
countries. According to the Bond (2014) in the year 1980s, when the debt crisis hit local
economies, manufacture units are not able to compete with other nations. Now the present they
are forced to closed. Now there are only few factories are remained who have produce cloths.
Due to this crisis, second hand cloths market in the country become popular. However, for the
short term it helped to East Africa for overcome shortage of cotton but for the long term purpose
it brings many types of problems. For the lower income group it is helps to them for fulling
their desires and maintain their living of standard. On the other hand due to this trading people of
Sub-Saharan have to lost their own clothing industries because they are not able to buy home
production cloths. According to Zivanai (2016) the major problems for the East Africa is that
second hand cloths market can not be banned. Many orthodox economists disagree with banning
imports because it goes against the principles of free trade. In order to overcome with this
problems East Africa has plans to take back its textile industry by increasing import tariff on
garments from the West. This tactic helps to local people for established their own
manufacturing units. On the other hand it is observed this polices is also raised many difficulties
for the countries.
By imposing tariff on this they can make limit the purchasing power of the consumer in
their countries. On the other hand it gives some time for their own manufacturing units for
improving their present conditions. The second-half strategy is to make development of the small
5

units into big manufacture companies. For this, EAC is trying to develop technologies and
required higher capital. It is considered the first step towards industrialisation. It helps to East
Africa for boosting their own industries and giving long term benefits for to economy. Along
with this it also helps to maintained their cultural. Under this section East African governments
focus on reducing manufacturing costs. It provides better way for their development strategics.
According to Behuria (2017) for making such type of polices, there are some many types of
problems are also there. In order to making successful implication of this process African
government need to required higher amount of investment and along with this they have to
maintained free trade polices as well. It also raise difficulties for the middle income group as
they are not able to buy imported second hand cloths. Apart From this, Banning imports of used
clothes means that the population has to choose between buying new imported goods, or buying
national produced goods. African government also make sure that products which are offers by
local manufacturing companies need to kept up the level quality in their product. Along with this
they also have to make sure that units costs which are them have to cost effective.
According to Katende-Magezi (2017) for improving conditions of the textiles industries
EAC is also Encouraging investors to build auto mobile assembling plants. The East African
countries are making focuses on developing diversified income source so they can make their
economy stable.
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CHAPTER 4
DATA ANALYSIS
4.1 Introduction
In this particular chapter, data analysis is considered as the crucial task that helps in
analysing the results of the study. Here, questions are being formed on the basis of objectives and
thus develop appropriate responses so that success could be attained. Present study is based upon
Implications on a proposed Ban of Second hand Clothes imports in East Africa by 2019 in order
to obtain responses so that desired results could be attained. Here, thematic analysis is being
carried out that helps in preparing appropriate themes so that valid conclusions could be drawn.
However, preparing appropriate themes results in explaining the information collected from both
primary and secondary sources.
4.2 Thematic analysis
Theme 1: Import of used clothes and shoes should ban in East African nation?
Strongly disagree
Disagree
Neutral
Agree
Strongly disagree
0
5
10
15
20
25
30
35
40
Column B
Illustration 1: Theme 1
It can be assessed from the diagram that there are 37 respondents out of 100 who strongly
disagree to the fact that import of used clothes and shoes should ban in East African nation.
However, they are not in the favour of banning import of second hand clothes while it is directly
impacting upon the textile industry of the nation. While, there are 2 respondents who are at
7

neutral position which means that they are neither agree nor disagree to the statement. On the
other hand, majority of the respondent i.e. 61 out of 100 assess that they strongly agree to the
fact that import of used clothes and shoes should be banned in East African nation because it is
impacting upon the textile industry in the form that production of such firms are decreasing as
people are buying second hand clothes at low prices. Thus, majority of the respondents are in the
favour and thus it helps in banning the use of second hand clothes and shoes from East African
nation.
Theme 2: Increasing import tariff on garments from West helps in supporting textile industry of
East Africa.
Yes
No
Not sure
Illustration 2: Theme 2
It can be assessed that there are 79 respondents out of 100 who assesses that increasing
import tariff on garments from West helps in supporting textile industry of East Africa. Thus, it
is considered as effective and thus government focuses upon increasing the tariff rate which
ultimately increases the price of garment products. While, there are 12 respondents who
disagrees to the fact that increasing import tariff on garments from West does not help in
supporting textile industry of East. Also, there are 9 respondents who are not sure about the
statement and they neither says yes nor says no. Thus, it could be assessed that majority of the
respondents are in favour and says that government is required to undertake effective policies
8

that would help in increasing tariff on garments from West that assists in supporting textile
industry of East. Therefore, it is the best way through which garment industry could flourish of
East African nation and thus they could earn high revenues.
Theme 3: Banning of second hand clothes raises issues for East Africans as they have to spend
more on buying domestically produced goods.
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
Illustration 3: Theme 3
It can be assessed that there are 32 respondents out of 100 who strongly disagrees to the
fact that banning of second hand clothes raises issues for East Africans as they have to spend
more upon purchasing of the products manufactured in the domestic market. Thus, it is one of
the main issue and thus it is affecting the textile industry of East African nation. However, it is
essential for government to understand the fact that if they ban second hand clothes then
residents are required to purchase clothes that are produced domestically. While, there are 5
respondents who are at neutral position means they are neither in favour nor against it. On the
other hand, 63 respondents out of 100 which means that majority of the respondents assesses that
they strongly agree to the statement and thus if government banned second hand clothes it would
raise issue for East Africans as they have to spend more money in regard to purchase
domestically produced clothes.
9

Theme 4: Increasing profits of textile industry is the main factor due to which East Africa's
government want to ban imports of used clothes.
Increasing profits of textile industry
Second hand goods are bad for health
0
10
20
30
40
50
60
70
80
90
Column B
Illustration 4: Theme 4
It could be evaluated that there are around 77 respondents out of 100 that identifies that
increasing profits of the textile industry is the main factor due to which East Africa's government
want to ban imports of used clothes. While, there are 13 respondents out of 100 who evaluates
that enhancing consumption of domestically produced clothes are also of the main factor due to
which government of East Africa focuses upon banning imports of used clothes. On the other
hand, there are 10 respondents who focuses upon the factor that second hand clothes should be
banned as they are not food for health and creates hygiene problem. Through considering all the
factors it is being evaluated that majority of the respondents assesses that East Africa's
government want to ban imports of used clothes and thus it would result in improving the profits
of textile industry. However, through banning the imports it would result in flourishing the
textile industry of country and increases their profit margin as individuals need to purchase
product at high prices.
Theme 5: Government should agree upon total banning on imports of second hand clothes.
10

Yes
No
Not sure
Illustration 5: Theme 5
It could be assessed that majority of the respondents i.e. 67 out of 100 respondents so that
they says yes to the fact that government should agree upon total banning on imports of second
hand clothes. However, it is considered as the best way through which government should agree
upon total banning in imports of second hand clothes. While, there are 19 respondents out of 100
assesses that they do not agree and says no to the fact that government should not agree upon
total banning on imports of second hand clothes. On the other hand, there are 14 respondents
who are not sure upon total banning on imports of second hand clothes. Thus, it could be
assessed that majority of the respondents are in favour and says yes to the fact that they agree
upon total banning on imports of second hand clothes so that textile industry of East African
nation could flourish and enhance profit margin.
Theme 6: Developing industrial policies measures should be obtained by government forces to
ban import of second hand products.
11

Developing industrial policiesIntroducing import legislationIncreasing tariff rate Others, if any
0
5
10
15
20
25
30
35
40
45
50
Column C
Illustration 6: Theme 6
It could be assessed that there are 47 respondents out of 100 who evaluates that
developing industrial policies is one of the main measure that helps in banning import of second
hand products. However, government uses such measure as it is successful for them because it
helps in improving infrastructure so that products could be reach faster to end users. While, there
are 32 respondents who says that introducing import legislation is another measure that could
help government in banning import of second hand products. Also, there are 12 respondents who
assesses that increasing tariff rate results in helping government so that they could force
government in banning imports of second hand products used by East African nation. On the
other hand, there are 9 respondents who says that there are others option has well that involves
other factors than stated so that government forces could decide to ban import of second hand
products. It could be evaluated that majority of the respondents says that developing industrial
policies by government helps in banning import of second hand clothes and shoes so that
domestically produced goods could be used by consumers.
Theme 7: Second hand goods are found to be bad for the health of people.
12

Yes No
0
10
20
30
40
50
60
70
80
90
100
Column B
Illustration 7: Theme 7
It could be assessed that there are 89 respondents out of 100 who says that second hand
goods are found to be bad for the health of people as government says that the clothes that are
coming are used and unhygienic to be used again by other people. While, there are 11
respondents who says no that it is not bad for the health of people from using second hand
clothes. Thus, it could be assessed that government says that people of East African region are
using used under wears which are unhygienic and thus it could affect their health. Therefore,
they aim to ban use of second hand clothes as it is affecting the health of their people. Therefore,
banning second hand good would result in protecting the health of people and give them better
conditions to live.
Theme 8: Banning imports is the right strategy.
13

Yes No
0
10
20
30
40
50
60
Column B
Illustration 8: Theme 9
It could be assessed that there are 45 respondents out of 100 who assesses that banning
imports is the right strategy and they agree to it. While, there are 55 respondents who states that
banning imports is not the right strategy. It is because of the main reason that import substitution
helps in attempting to substitute their imports with goods products domestically. But it is
misguided as countries tries to carry out import substitution to shield their nascent industries
from external competition. The results, however, were largely disappointing and included slower
industrial growth and the presence of over-priced low quality goods on the domestic markets.
Secondly, the ban raises a problem for East Africans. Banning imports of used clothes and shoes
means that the population has to choose between buying new imported goods, or buying
domestically produced goods. If the latter are costly, or of poor quality, East Africans citizens
will have to spend more on these goods. Poorer people, who are more likely to purchase worn
shoes and clothes, will bear the burden.
Theme 9: Banning imports of second hand clothes and shoes would help in flourishing the textile
industry of East African nation.
It could be assessed that 55 respondents agrees to the fact that banning imports of second
hand clothes and shoes would help in flourishing the textile industry of East African nation.
Thus, it is the best way through which domestic industry could flourish and thus it could be
attain through banning the import of second hand clothes. While, there are 45 respondents who
14

do not agree to the fact and says that banning of second hand clothes and shoes would not result
in flourishing the textile industry of East African nation,
Theme 10: Textile businesses are expected to improve production in the region.
It could be stated that there are 40 respondents who are not in favour of the fact that
banning should be implemented and which are impacting the production of textile industry in
East African region. On the other hand, there are 60 respondents who assesses that through
banning of imports from West it would help in improving the production of textile in the region.
Thus, it is the best way through which businesses could flourish its expansion level and thus
enhance the market.
DISCUSSION
4.1 The African Growth and Opportunity Act (AGOA)
This is to specify about the implication of ban onto the enactment entitled as African
Growth and Opportunity Act (AGOA). It is where the ban directly resulted in negating the
factual requisitions of this act that aimed to obviate the barricaded measures of trade to US. It
was a prime consideration of the beneficiaries related to this act to invest more into the economic
policies as a way of encouraging the diminution of poverty. It is on together considering the
statement given by US trade representative (USTR), it was found that they were assessing the
benefits of trade that can be acquired by Tanzania, Uganda and Rwanda within the norms of
AGOA. It was however followed by a complaint made by US about such prohibition on the
importation of used clothing by East African. USTR hereby came up with a response to critique
the petition which was filled up by Secondary Materials and Recycled Textiles Association
(SMART). This resulted in the evolution of “out-of-cycle” where it was in response to the
complaints made specifying that this ban resulted in an obligatory substantial adversity on the
trade measures of used clothing in US where it also profaned the norms of AGOA.
4.2 Second hand clothing (SHC) in the world
SHC are being collected from the benefactors which are then exported by the
commercialized establishments situated in foreign countries after going through the process of
sorting. It is basically referred to be a mandate procedure carried out for the grouping of such
usable goods that can be further traded to other nations. It is therefore referred to be an important
consideration for further proceeding with the processing of export goods. It is a step wise
15

approach in which, firstly the traders includes the division of cloths into various categories such
as rags, fibre and clothing, etc., to further classify it all in accordance to the product type. This is
for instance to discourse upon the present situation of USA in a similar field of work, they are
referred to categorise such usable cloths in more than 400 different categories. These are later
packed into bundles of 45-55 kilogram with similar type of clothing in each which are then
loaded and shipped abroad. However, a major point of consideration over here is in mainly in
context of the export of such used commodities that were previously collected in the name of
donation by the commercial bodies and are then lawfully exported in the foreign countries. This
entire process is done by following a legal procedure of trading.
4.3 Second Hand Clothing in the EAC Region
Currently, it has been found that SHC are listed in the sensitive list of EAC where it has
also attracted a CET rate of 35% which is nearly equitable to $0.20 per kilogram, which so ever
is higher. This meant that the existent regimen of EAC directly led to deter the importing of SHC
with a prime obligation of paying high taxation rates. It was dissimilar than the other goods
provisioned by EAC which were imported with a normal CET charge of 25% or sometimes even
less. This indicated a high rising of imports of SHC to EAC. It is also due to the application of
CET where the final cost is very less due to the origination of exportation cloths from donations.
After which, these are formally grouped and traded outside. Also, due to such low cost of
importing, EAC is specified to be one of the largest trading region for the import of SHC. It is
therefore in the year 2013, the total percentage of SHC traded by EAC at a global level was
measured to be 8%. This was however on consolidating the statistics of all export regions with
3% contribution for Kenya, 1.9 for both Tanzania and Uganda with 0.6% for the region called
Rwanda and 0.2% for Burundi.
Impact of the Ban within the EAC
This is to scrutinize the impact of ban onto the involved bodies within the trading bodies
such as EAC. It in turn depicted the plea of local customers and trade consumers associated with
the commercialization of SHC where they stated this ban to be a big fault by EAC Summit. It is
mainly due to the intent of East Africans where they often used to buy these products because of
its uniqueness and affordable nature with a considerable quality. It is also in lieu of the fact
where several number of customers from the East African region are known to buy such utilized
16

cloths since 1980's and have thence raised this query where it is supposed to be a realistic issue
for them.
It is specially on considering the responses acquired from the respondent bodies where
they hereby expressed a very general opinion to the consultant body by stating that they are
wearing such SHC since their childhood and it does not represent any arguable sense in it.
However, the branded cloths are specified to be more costly where they are often considered as
less affordable with a cheap quality. Apart from this, the traders were also asked to explicit their
concerning views over here based on the implication of banned EAC 29. On whose response, the
traders were observed to be more concerned about the failure of income to them with a major
concern of those associated with SME businesses. This will in turn also result into the increase of
poverty levels where a number of people will become dependent with a chance of getting into
several anti social behaviour.
Whereas, on considering the actual sense of banned SHC from the governmental point of
view is not to restrict the customers as well as the traders into this business but to have some
defined alternatives. This is for instance on referring to the existence of either imported new
cloths or locally made can be definitely restored at a low-cost range of price. It is however
referred to be a very parallel enforcement of ban with a due consideration of the governmental
bodies to take efficient measures for encouraging affordable pricing of cloths. Whereas, it can be
done by enforcing a direct policy in which the governmental bodies will hereby ensure the
production cost that will directly influence the final cost of the goods that will be ultimately paid
by the customer at the time of purchasing it.
The local textile manufacturers
It is on considering the impact on ban on the local manufacturing industries in Africa
where they are hereby accepted to deal with a less state of competition due to inexpensive SHC's.
It is on comparing the aforementioned specifications where the import of SHC has previously
indicated an unfavourable impact on the production of apparels in Africa where it actually
resulted in the declination of 40% production. Also, it affected 50% employment within the
period of 1981-2000. As a result to which, this ban is referred to be a beneficial deal for the local
cloth manufacturers of Africa where now they can consider selling more number of products to
make substantial profits. It is thereby argued by the people associated with the local textile
industry to inculcate the practice of ban where it could lead to raise the employment
17

opportunities in textile industries to a great extent. It will be mainly in response to an increased
demand of products with a restricted supply. This way, the local manufacturers can easily
contend with other importation. However, such benefit is not applicable for those manufacturers
of textile industry who are representing the Export Processing Zones (EPZs). It is however due to
the fact where such manufacturers are only permitted to sale a specific percent of their yearly
output in the local marketplace. It is applicable to duty free goods and value added tax (VAT) on
the basis of zero charge per unit. Although after ban, this the applied polices of EPZ may require
some changes by which they can refer to enhance their sales in their local marketplaces to get
some benefits from taxation. It is basically due to a potent outlook of this industrial sector where
EPZ is much more competent to meet the standards of exportation. This in turn is apparent to
modify the market by provisioning high alternatives to the customers in such period of change.
The EAC Governments
It is on scrutinizing the impact of ban onto the EAC governmental bodies where they will
be required to deal with an immediate impact that will in turn necessitate them to promote some
leading industrial sector that will involve apparel, cotton, leather and textile sectors. Also, it will
be with a major intent of deliberating some sort of changes in the policies of these industries by
together adjusting the costs on part of government. A vital impact on the encouragement of these
sectors will directly result into the rise of employment status that will result from an enhanced
level of industrialisation. However, it is also evident to show create a sense of criticism in the
diminution of poverty levels for the enhancement of individual's living standards. Although, the
governmental bodies are also expecting a substantial loss in the revenues gained from the
generation of taxes. This is for instance on considering the statistics of Kenya in the year 2013
where it gained $54 million as tariff revenue. It was however on the basis of 100, 000 tons of
SHC imported.
Likewise, Rwanda in the year 2016 has almost tripled this data by increasing its import
on clothing from 35 to 100%. It was however to promote buying from the limited textile mills of
the nation. It is hereby on considering the fact of ban where it is apparent to result onto the loss
of above earned revenues with another concerning agenda of importing in an illegal manner.
This is to reveal the idea of smuggling that may took place in many places as a result of ban on
the import of SHC in EAC nations. It is specially where people are clearly accepting the fact of
not being able to afford branded clothings. Therefore, in the situation of crisis, they may practice
18

the tact of smuggling. It will in consequently lead to support an illicit trade of goods that will
clearly deny the revenue earned from governmental taxes. Also, it will highly pressurize the
governmental bodies to exactly address the regions where an illegal trading of goods is taking
place. Lastly, the ban will be in terms of government who will be directly responsible to take the
charge of disbursing monetary funds for the benefit of the society with no earning.
4.3.1. What is EAC’s Vision?
EAC was established in the year 1999 with a prime motive of promoting the
industrialized sector of the community by applying some vivacious industrial policies. However,
it is now at the stake of various negative perceptions of the concerned officials related to this
filed of business in EAC countries. It is in context to a high level of dependency of EAC on the
import of goods that is now required to be lessen down to achieve the real goal. It is mainly with
reference to the ban of SHC which is now referred to be a critical part of the enforcement
standard that has led to the implication of ban on the industrial policies of EAC 31. This is to
indicate a existent issue in an effective implementation of some desirable policies that will in
turn result in creating minimum unfavourable outcomes for the partnering state economies and
their citizenries. On considering all above specified events, it has been found that EAC is
envisioning he prosperity of people belonging to the category of middle level income and are
residing in the urbanised locations by the end of the year 2050. Also, they are hereby aiming to
attain a contending yet secured politically agreed location by the end of 2050 by undertaking
some prompt measures from the beginning of the year.
4.3.2 There is no ban on new clothing?
It is to scrutinize the fact where SHC ban is questionable in many ways. It is firstly to
scrutinize whether the SHC ban is also applicable in the importation of new garments. However,
an unaffected realism in the import of new cloths is apparent to impact upon the national
producers of garments. This is on considering the clothings exported from China in almost all
EAC nations depicts an inexpensive price range. It thereby necessitates the governmental bodies
to give a prompt attention to the inflow of low-budget new clothings within EAC regions. It is
related to yet another prime consideration of attaining real success in encouraging some specific
sectors of textile such as apparels and leathers etc. Beside this, such boost up capability must not
be applicable in supply measures but should also focus onto the development of contending
products. On ignoring this fact, it may directly result into confining the overall population to anti
19

competitive products where there will be no such promotive measures to eliminate the existence
of reverting nationals to the import of SHC.
4.3.3. Different power relations in SHC trade
SHC begins with the provisioning of donation that in turn meets the features of food
assistance. This in turn support the customers along with a pessimistic impact on their economies
followed by some unfavourable effects. On other hand, the nations with large number of powers
are referred to correspond as the biggest exporters of SHC. On whose basis, it is hard for EAC to
disregard the existent relation of trade maintained with these nations. Also, they cannot dismiss
the applied ban on the trade by together considering their trading relations. It is therefore
important for EAC to concentrate on the achievement of long term goals even when it comes to
the attainment of their objectives undertaken in their short term plans.
4.3.4. African countries have consistently failed to boost industrial production
It is on considering the above conducted analysis in this survey that has clearly depicted a
leading role of African nations whose population is represented to be one of the biggest
customers of SHC. This is also considering the fact where the African countries are situated at
the bottommost position in the list of manufacturers in the entire world. However, there is a
continual existence of multiple challenges related to the industrialization in Africa that is
required to be contended by EAC. This is basically to eliminate an active existence of SHC by
together encouraging the presence of textile and leather sector in a successful manner. Such
consideration towards the developmental agenda of African manufacturing industry has in turn
revealed some other leading challenges related to the supply and production of goods. This
scrutinized the existence of miserable infrastructure with high power taxes with several other
challenges that are previously documented by their governmental bodies. All these issues are
however required to be addressed on time so as to meet with some substantial means of
progression. One such solution is the use of taxation policy to benefit the localised production of
goods. This is for instance of fabric which is presently referred to be an intermediate product,
where Rwanda has recently enforced its categorization as a raw material that will be fetched on
zero importation tariff.
How are Other Countries in the World Addressing Issues Relating to SHC Imports?
It is on assessing the way in which distinct nations are addressing the issues that are
related to the importation of SHC goods. On whose consideration, it has been found that
20

different countries are adopting various tactics to restrict the inflow of SHC in their economies
with success. This is on considering the case of South Africa where they have accepted the ban
on the trading of SHC. Whereas, in India, the governmental bodies have grasped their cultural
clothing which is locally designed and thus do not demand for the importation of SHC.
The path taken by Rwanda
This is on referring to the policies that are being adopted by Rwanda in the enforcement
of Summit decision for the reduction of SHC inflow by encouraging the evolution of textile,
leather and apparel industry as defined in the clause of MTI 2016. These are as mentioned
below-
1. Financial Measures: Advanced formation of SHC importation has been done by using some
changed taxation measures so as to discourage the import of SHC. This is for instance to
consider the change in Tariff increase on SHC initiating with US $2.5 per kilogram by the end of
December 2016. Also, it has been targeted to reach $4 per kilogram by the end of July 2017 and
$5 within next one year.
2. Implementation of pre-shipment scrutiny is required on all SHC products imported within the
nation and is also required to abide by the sanitary requisitions in the destination nation.
21

CHAPTER 5
CONCLUSION & RECOMMENDATIONS
In east Africa, second hand clothing was used in the entire textile community because
this type of market is very cost effective. These products are of high quality and less expensive.
They are highly sustainable in the market. But it was discovered from this research that this
system is demolishing the textile industry of EA. People are becoming habitual of buying
western clothes because they are getting those clothes in very low costs as compare to the local
manufactured clothes. Local people are not able to buy their own manufactured clothes because
they are having slightly high rates. It has been observed that most of the countries in sub-Saharan
part are having very slow rate of growth. The employment rates are also decreasing because local
people are not encouraging their own manufacturing companies. This is basically due to a less
existence of manufacturing industries with more dependency on the imported SHC products that
is in turn resulting in the decline of employment rates.
They want that the ban should be implemented on the second hand clothing so that they
can survive in the market. Countries like Rwanda has increased the duties on importing the
clothes and shoes from western countries. This will result in the improvement in production and
the promotion of local manufacturers. Use of technology as the main attribute in manufacturing
process of textile industry can help in diversifying the product range. It is also shown in this
research that for a shorter period of time when the country was in crisis, these western clothes
have bought their economic conditions on slightly upper level but this has developed major
problems for the purpose of long time. But currently the major issue is that these second hand
clothes are not facing any ban in the market. This is decreasing the production rates and
profitability of local market. Further it was also observed that countries in East Africa have
increased the taxation and tariff rates on garments and shoes so that they can improve their
economy.
The research clearly showed that imported clothes are helping them in maintaining their
living standards but the local market is losing its credibility because they are not able to sell the
goods. Second hand clothing was very effective in terms of cost, at the same time it is causing
problems for the local community. As they are not able to generate profit from the textile market.
22

But it has been clearly shown from this research that ban the imported clothes is not a
good strategy. Two main reason was discovered from this, one is that it will not work because it
can slow down the industrial. The domestic products can be very costly but poor in terms of
quality. The second problem from this ban for East African is that this will put an option in front
of the population. They have to choose from the domestic products or the imported products with
higher cost. But if the domestic goods turn out to be more costly and of very poor quality, then
people have to spend more money and time in correcting those goods. This will be again loss to
the textile industry.
It is inferred that the implication of this ban is not viable. It will cause more problems for
the people of East Africa. From the findings it is visible that the ban will certainly increase the
demand in local market and the pressure will be on the industry to deliver quality products. If
they failed in doing so, it will drastically reduce the industrial condition of local market. People
will not think twice in buying the imported clothes because of their high quality. Thus, from this
research it has been concluded that by improving the quality of products in local market, the East
Africa can improve their economic as well as industrial conditions.
23

REFERENCES
Books and Journals
AFRICA, E., 2016. Africa Research Bulletin. Population. 5(7.1). pp.5-0.
Baskerville, R. L. and Wood-Harper, A. T., 2016. A critical perspective on action research as a
method for information systems research. In Enacting Research Methods in Information
Systems: Volume 2 (pp. 169-190). Springer International Publishing.
Behuria, P., 2017. The political economy of import substitution in the 21st century: the challenge
of recapturing the domestic market in Rwanda.
Bond, P., 2014. Starting from Where the Movements Already Are.
Brooks, A., 2013. Stretching global production networks: The international second-hand clothing
trade. Geoforum. 44. pp.10-22.
Diamond, M., 2016. Africa Research Bulletin.
Farmer, T. W. and et. al., 2012. Bullying involvement and the school adjustment of rural students
with and without disabilities. Journal of Emotional and Behavioral Disorders. 20(1).
pp.19-37.
Holt, D. and Littlewood, D., 2017. Waste Livelihoods Amongst the Poor–Through the Lens of
Bricolage. Business Strategy and the Environment. 26(2). pp.253-264.
Katende-Magezi, E., 2017. The Impact of Second Hand Clothes and Shoes in East Africa.
Mishna, F., 2012. Bullying: A guide to research, intervention, and prevention. OUP USA.
Oluwusi, O.O., 2016. The Impact of Regional Integration on Nigeria’s Imports: A Case of
ECOWAS Common External Tariff on Agro-Processing(Doctoral dissertation,
Stellenbosch: Stellenbosch University).
Rivoli, P., 2014. The Travels of a T-Shirt in the Global Economy: An Economist Examines the
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on Economic Issues and Main Characters. John Wiley & Sons.
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van der Ven, C.M., 2017. Trade, Development and Industrial Policy in Africa: The Case for a
Pragmatic Approach to Optimizing Policy Coherence Between Industrial Policy and the
WTO Policy Space. Law and Development Review,10(1). pp.29-80.
Wu, M.Y., Wall, G. and Pearce, P.L., 2014. Shopping experiences: international tourists in
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Zivanai, B., 2016. Investigating the deindustrialisation process in Zimbabwe since 1980.
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Quantitative, Qualitative and Mixed Research. 2015. [pdf]. Available through:
<http://www.uk.sagepub.com/upm-data/38123_Chapter2.pdf >. [Accessed on 24th June,
2017].
Simon, f., 2017. The beneficial nature of the second hand clothing trade in Sub-SaharanAfrica
Qualitative Research: Empirical and Analytical Methods. [Online]. Available through:
<httphttp://www.lmb.co.uk/downloads/TextilesInAfrica.pdfl>. [Accessed on 24th June
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25

APPENDIX
Questionnaire
Name
Age
 23-30
 31-35
 36-45
 45 and above
Gender
 Male
 Female
Do you think that import of used clothes and shoes should ban in East African nation?
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
Do you think that increasing import tariff on garments from West helps in supporting textile
industry of East Africa?
 Yes
 No
 Not sure
Do you agree that banning of second hand clothes raises issues for East Africans as they have to
spend more on buying domestically produced goods?
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly disagree
From below which is the main factor due to which East Africa's government want to ban
26

imports of used clothes?Increasing profits of textile industry
 Enhance consumption of domestically produced clothes
 Second hand goods are bad for health
Do you think that government should agree upon total banning on imports of second hand
clothes?
 Yes
 No
 Not sure
What type of measures should be obtained by government forces to ban import of second hand
products?
 Developing industrial policies
 Introducing import legislation
 Increasing tariff rate
 Others, if any
Do you think that second hand goods are found to be bad for health of people?
 Yes
 No
Do you think that banning imports is the right strategy?
 Yes
 No
Banning the imports of second hand clothes and shoes would help in flourishing the textile
industry of East African nation?
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
Do you think that textile businesses are expected to improve production in the region?
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
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28

2