Africa's Thriving Second-Hand Clothing Market Valued at $1.75 Billion

Reese Morgan

Reese Morgan

November 27, 2024 · 3 min read
Africa's Thriving Second-Hand Clothing Market Valued at $1.75 Billion

The demand for affordable clothing in Africa has led to a thriving industry in second-hand clothes, commonly known as "Okrika." According to a report by the Observatory of Economic Complexity (OEC), the African used cloth market was valued at $1.75 billion in 2022, contributing significantly to the economy and creating jobs in areas such as handling, alterations, refinements, and distribution.

The top exporters of used clothing in 2022 were the United States, China, the United Kingdom, Germany, and South Korea. On the other hand, the top global importers of used cloth were Pakistan, the United Arab Emirates, Chile, Kenya, and Guatemala. Kenya, Ghana, and Tanzania emerged as the top African countries importing the most second-hand clothes, with import values of $202 million, $164 million, and $148 million, respectively.

The African clothing sector plays a crucial role in boosting clothing demand across the continent by increasing fashion awareness. Many people have turned to second-hand clothes due to the high cost of designer apparel. The industry's growth has created jobs and contributed to the economy, making it a vital sector in Africa.

However, the trade in second-hand clothing imports from the United States, Europe, and other Western markets is legal in some African countries, while it has gone underground in other countries where the trade is banned. In 2016, the East African Community (EAC) planned to ban second-hand clothes imports by 2019 to support the local textile industry.

However, the United States challenged the ban, citing potential violations of free trade agreements and threatening trade penalties, including losing access to duty-free exports under the African Growth and Opportunity Act (AGOA). To circumvent this, Kenya, Uganda, Rwanda, and Tanzania increased taxes on imported second-hand clothing, with Rwanda raising the tax from $0.20 to $2.50 per kg in 2018, aiming to protect the region's textile sector.

The growth of the second-hand clothing industry in Africa has significant implications for the economy and job creation. As the demand for affordable clothing continues to rise, it is likely that the industry will continue to thrive, providing opportunities for entrepreneurs and small businesses in the sector.

In conclusion, the African second-hand clothing market is a significant contributor to the economy, creating jobs and driving growth. As the industry continues to evolve, it will be important to monitor its impact on the local textile industry and the economy as a whole.

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