{"id":9361,"date":"2026-10-20T17:03:58","date_gmt":"2026-10-20T16:03:58","guid":{"rendered":"https:\/\/techstream.africa\/?p=9361"},"modified":"2026-10-20T17:03:58","modified_gmt":"2026-10-20T16:03:58","slug":"south-african-unions-target-shein-and-temu","status":"publish","type":"post","link":"https:\/\/techstream.africa\/?p=9361","title":{"rendered":"South African unions target Shein and Temu"},"content":{"rendered":"\n
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South Africa\u2019s largest trade union federation has called for a ban on global online shopping platforms Shein and Temu, warning that their rapid growth could threaten local manufacturers, retailers and thousands of jobs across the country.<\/p>\n\n\n\n

The Congress of South African Trade Unions (COSATU)<\/a> adopted the resolution at its 15th National Congress in Johannesburg in October 2026, backing a proposal from the Southern African Clothing and Textile Workers\u2019 Union (SACTWU) to restrict the platforms\u2019 operations. The unions argue that low-priced imported goods are placing increasing pressure on domestic businesses and weakening local manufacturing.<\/p>\n\n\n\n

According to a study commissioned by the Localisation Support Fund in 2025, international online retailers contributed to approximately R960 million in lost local manufacturing sales between 2020 and 2024. The study associated the impact with 2,818 manufacturing jobs and 5,282 retail jobs displaced during the period.<\/p>\n\n\n\n

The research also warned that more than 34,000 jobs in South Africa\u2019s clothing, textile, footwear and related retail sectors could be displaced by 2030 under a worst-case scenario.<\/p>\n\n\n\n

Shein and Temu have attracted South African consumers through low prices, extensive product selections and aggressive digital marketing. Shein entered the South African market in 2020, while Temu followed in 2024, expanding access to internationally sourced clothing, accessories and household products.<\/p>\n\n\n\n

For local retailers and manufacturers, however, the platforms represent growing competition. Domestic businesses must contend with operating expenses, production costs and employment obligations while competing against international sellers that manufacture and distribute goods at scale.<\/p>\n\n\n\n

Trade unions argue that the consequences extend beyond individual companies. If local factories reduce production or close, workers could lose their livelihoods, while communities dependent on manufacturing and retail employment could experience further economic pressure.<\/p>\n\n\n\n

The proposed ban has also raised questions about consumer choice, competition and the most effective way to protect domestic industry.<\/p>\n\n\n\n

South Africa has already taken steps to address tax advantages enjoyed by low-value imported goods. Changes to import taxation introduced in 2024 and subsequently implemented removed the previous VAT exemption for certain low-value imports, while later customs adjustments further changed the treatment of these shipments.<\/p>\n\n\n\n

Michael Lawrence, executive director of the National Clothing Retail Federation, has cautioned that banning international platforms outright could be an overly simplistic response to a more complex challenge. He has called for closer scrutiny of their operations and greater attention to fair competition and tax compliance.<\/p>\n\n\n\n

An outright prohibition could also limit consumers\u2019 access to affordable products and potentially encourage informal trading if demand persists.<\/p>\n\n\n\n

COSATU\u2019s resolution signals growing pressure on the South African government to strengthen protections for domestic businesses and workers. However, the call for a ban remains a union position rather than an announced government prohibition.<\/p>\n\n\n\n

The debate ultimately highlights a difficult policy balance: preserving affordable shopping options while ensuring that local manufacturers and retailers can compete under fair conditions.<\/p>\n\n\n\n

Whether South Africa pursues a ban, tighter enforcement or broader industrial support, the outcome could influence how governments across Africa respond to the growing power of international e-commerce platforms.<\/p>\n","protected":false},"excerpt":{"rendered":"

South Africa\u2019s largest trade union federation has called for a ban on global online shopping platforms Shein and Temu, warning that their rapid growth could threaten local manufacturers, retailers and thousands of jobs across the country. The Congress of South African Trade Unions (COSATU) adopted the resolution at its 15th National Congress in Johannesburg in…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9361","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/techstream.africa\/index.php?rest_route=\/wp\/v2\/posts\/9361","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/techstream.africa\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/techstream.africa\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/techstream.africa\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/techstream.africa\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9361"}],"version-history":[{"count":1,"href":"https:\/\/techstream.africa\/index.php?rest_route=\/wp\/v2\/posts\/9361\/revisions"}],"predecessor-version":[{"id":9363,"href":"https:\/\/techstream.africa\/index.php?rest_route=\/wp\/v2\/posts\/9361\/revisions\/9363"}],"wp:attachment":[{"href":"https:\/\/techstream.africa\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9361"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/techstream.africa\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9361"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/techstream.africa\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9361"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}