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.
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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
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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
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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
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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
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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
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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.
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