'Cheap imports': COSATU calls for Shein and Temu ban over threat to SA jobs

COSATU says ultra-cheap imports from Shein and Temu are undermining South African manufacturers and retailers, after adopting a resolution calling for the platforms to be banned.

Image: Illustration by Ben Montgomery/Getty Images

COSATU is pushing for a complete ban on Chinese online shopping platforms Shein and Temu, warning that cheap clothing imports are threatening thousands of South African manufacturing and retail jobs.

The trade union federation adopted the resolution at its 15th National Congress following concerns raised by the Southern African Clothing and Textile Workers’ Union (SACTWU) about the impact of low-cost imports on local businesses.

SACTWU warned that a flood of ultra-cheap imports is undercutting South African manufacturers and retailers, many of whom are already struggling to stay afloat.

According to a report by the Localisation Support Fund, Shein and Temu generated a combined R7.3 billion in South African sales during 2024. The figure accounted for 3.6% of the country's clothing, textile and footwear market, and 37% of all online retail sales.

The report found that the rapid growth of the platforms cost the local economy more than 8,000 potential jobs between 2020 and 2024. 

This included R960 million in lost local factory sales, contributing to the loss of more than 2 800 manufacturing jobs and 5 200 retail positions.

Unions argue that the platforms benefit from tax loopholes, cheap overseas labour and low shipping costs, giving them an unfair advantage over local businesses that cannot match their rock-bottom prices.