A new report has highlighted the critical role that Mozambique’s second-hand clothing (SHC) industry plays in employment, livelihoods, and public finances, warning that restrictions on the trade could have severe economic consequences.
The study, commissioned by ADPP Mozambique and conducted by Consulting For Africa (CFA) and Abalon Capital Limitada (Abalon), found that the SHC industry provides over 200,000 formal and informal jobs, directly supporting more than one million people. It also generates around $35 million in tax revenues, which contributes to education, healthcare, and other social programmes.
A Key Source of Employment and Income
Mozambique is one of the poorest countries in the world, ranking 183rd out of 191 countries in the United Nations Human Development Index. With a quarter of the population unemployed, the report highlights the SHC sector as a lifeline for many communities.
For vendors, the industry is particularly lucrative compared to national wages. The research found that established SHC traders earn an average of $650 per month, far exceeding the national minimum wage of around $90 per month.
The industry also meets basic clothing needs for at least 85% of the population, ensuring affordable options for those who would otherwise struggle to buy new garments. Any disruption to this trade, the report warns, could exacerbate poverty and economic hardship.
Global Sustainability vs Economic Realities
The findings come amid growing international discussions on the environmental impact of second-hand clothing exports. Some policymakers and environmental groups have called for restrictions on SHC imports, arguing they contribute to waste management issues and harm local textile industries.
However, Brian Mangwiro of Abalon Capital urged a balanced debate that considers the economic impact on developing nations.
“Millions of livelihoods are deeply intertwined with SHC-related trade and services, not just in Mozambique but across Africa,” he said.
“Policymakers must balance environmental sustainability efforts with the economic realities of low-income countries. Any global decisions on SHC trade should be based on a clear understanding of its value chain and its role in frontier economies.”
SHC Industry as a Path to Growth
Former Mozambican Prime Minister Madame Luisa Diogo, speaking at the launch of the report, welcomed its findings.
“This sector is not just about clothing; it is a source of dignity and opportunity, sustaining families, creating jobs, and contributing significant tax revenue,” she said.
She also emphasised the importance of integrating SHC trade into the green economy, seeing it as a path towards poverty reduction, sustainable development, and inclusive growth in Africa.
Challenging Misconceptions
The report also challenges the perception of SHC dumping, highlighting that reuse and repurposing are deeply rooted in local culture. Clothing is often passed down within families or adapted by local tailors, contributing to a sustainable and circular economy.
As global debates on SHC imports continue, the report calls for informed policy discussions that ensure efforts to tackle climate change and waste management do not come at the cost of economic survival in low-income nations.
