The Congress of South African Trade Unions (COSATU) has formally called for a ban on Chinese-owned online retail platforms Shein and Temu, citing serious concerns about job losses and the collapse of local manufacturing.
The country’s largest trade union federation adopted the resolution at its 15th National Congress in October, following a proposal by the Southern African Clothing and Textile Workers’ Union (SACTWU).
COSATU has urged South Africans to delete the shopping apps and buy from local retailers instead, warning that the platforms are destroying the country’s clothing, textile, footwear and leather industries.
Thousands of jobs at risk
Research commissioned by the Localisation Support Fund found that Shein and Temu generated about R7,3 billion in South African sales during 2024, accounting for 3,6% of the total clothing and textile market.
The study revealed that between 2020 and 2024, the platforms contributed to the loss of roughly 8 100 potential jobs, including 2 818 in manufacturing and 5 282 in retail.
If current trends continue, the unions warn that up to 34 000 jobs in the clothing, textile, leather and cosmetics sectors could disappear by 2030.
Unfair competition claims
SACTWU and COSATU argue that Shein and Temu exploit tax loopholes, cheap offshore manufacturing and low shipping costs to undercut local businesses.
The unions say this creates unfair competition that local manufacturers and retailers cannot match, leading to factory closures, job losses and lower wages for workers who remain employed.
COSATU has called on its members and the broader public to show solidarity with local workers by boycotting the platforms entirely.
Government response mixed
The South African Revenue Service (SARS) took action in 2024 by removing the tax exemption that allowed parcels valued under R500 to enter the country with only a flat 20% duty and no Value-Added Tax.
Low-value imports now face standard import duties and VAT, which reportedly slowed the platforms’ growth in South Africa during 2025.
However, no official government ban has been imposed, and COSATU continues to push for stronger measures.
Industry warns against outright ban
While some business groups support efforts to protect local jobs, the National Clothing Retail Federation of South Africa has cautioned against an outright ban.
The federation argues that a ban could be anti-competitive and might encourage black market activity instead of solving the underlying problem.
Industry representatives suggest that better enforcement of existing tax and import regulations, combined with efforts to help local retailers compete digitally, would be more effective than a total prohibition.
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Other organisations join the call
Besides COSATU and SACTWU, the Localisation Support Fund has been instrumental in researching the impact of offshore e-commerce platforms on South Africa’s manufacturing sector.
The LSF recommends auditing offshore operators for compliance with consumer protection, labour and privacy laws, improving customs procedures and helping local retailers adopt digital technologies to compete more effectively.
The debate continues as unions, government and industry stakeholders weigh the balance between protecting local jobs and maintaining competitive markets for South African consumers.
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