Mozambique’s Second-Hand Clothing Industry: Essential for Livelihoods and Economic Growth

The second-hand clothing (SHC) industry in Mozambique is crucial, providing over 200,000 jobs, supporting over a million livelihoods, and supplying essential clothing for 85% of the population. With substantial monthly earnings for vendors and tax contributions of about $35 million towards social programs, the industry plays a vital role in the country’s economy amidst high unemployment rates. Current debates on SHC’s future must consider the economic dynamics of developing nations and the environmental implications.

A recent report from Consulting For Africa and Abalon Capital, commissioned by ADPP Mozambique, underscores the critical role of the second-hand clothing (SHC) industry in Mozambique. The SHC sector provides over 200,000 jobs—supporting more than one million livelihoods—and offers substantial average monthly earnings for vendors. This industry also addresses the basic clothing needs of approximately 85% of the population and contributes around $35 million annually in tax revenue to the government, supporting essential social programs such as education and healthcare.

Despite being one of the poorest nations worldwide, Mozambique sees a significant portion of its population reliant on the SHC sector. With an unemployment rate of about 25%, the findings of this report reveal the necessity of the SHC industry as an essential lifeline for many households and a significant contributor to public finances. Disruption to this sector could critically affect a population already facing widespread poverty.

The report highlights the economic dynamics of the SHC market globally and in developing countries. Brian Mangwiro from Abalon Capital emphasized the interconnectedness of livelihoods across Africa through SHC trade, advocating for a balanced policy approach that addresses environmental sustainability while recognizing the economic significance of this sector in vulnerable economies.

Former Prime Minister Luisa Diogo voiced her support for the report, affirming the integral role of SHC in fostering economic growth and community well-being in Mozambique. She articulated that the industry not only provides clothing but also dignity and employment opportunities while contributing significantly to tax revenues which fund vital public services.

Additionally, the report challenges the misconception of SHC as mere waste, illustrating that the local culture prioritizes clothing reuse. Many families pass garments down or repurpose them, reflecting the cultural significance of this trade in Mozambican society. Moreover, the SHC industry particularly benefits marginalized groups, including women and youth, by offering job opportunities and enhancing workforce skills.

In summary, the SHC industry in Mozambique serves as a vital economic and social resource, supporting hundreds of thousands of jobs and addressing basic clothing needs for a large percentage of the population. The findings from the recent report advocate for a well-rounded policy approach that factors in the economic realities of developing nations while promoting environmental sustainability. Recognizing the transformative impact of the SHC sector is essential for fostering inclusive growth and sustainable development in Mozambique and across Africa.

Original Source: www.prnewswire.com