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Mozambique's Second-Hand Clothing Industry: A Lifeline for Millions and a Catalyst for Economic Growth


News provided by

ADPP Mozambique

18 Mar, 2025, 22:01 GMT

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  • New Report Calls for a Balanced Approach to Global Second-Hand Clothing Trade Amid Growing Policy Debates on Environmental Sustainability

MAPUTO, Mozambique, March 19, 2025 /PRNewswire/ -- A new report by Consulting For Africa (CFA) and Abalon Capital Limitada (Abalon), commissioned by ADPP Mozambique, has revealed the vital role that the second-hand clothing (SHC) industry plays in the daily lives and economy of Mozambique. According to the research, the SHC industry provides:

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Mozambique's Second-Hand Clothing Industry: A Lifeline for Millions and a Catalyst for Economic Growth

  • Over 200,000 formal and informal jobs, directly supporting over 1 million livelihoods
  • $650 per month on average in earnings for well established vendors (compared to the national minimum wage of c.$90 per month)
  • Basic clothing needs for at least 85% of the population
  • c.$35 million in taxes towards the country's budget, which helps support vital social programmes such as education and healthcare

Mozambique is one of the poorest countries globally, ranking 183rd out of 191 countries on the United Nations Human Development Index. With around 25% of the country's population currently unemployed, the report's findings underscore the importance of the SHC industry as a crucial source of basic clothing, employment and public finances. Therefore, any negative disruption to it could have devastating consequences for a population already grappling with widespread poverty.

The report Current Status of Mozambique's Second-Hand Clothing Market: Opportunities and Challenges is the latest piece of research evaluating the global significance of the SHC industry, both economically and environmentally. Crucially, it highlights that in the broader debate over the global utility of the trade in second-hand clothing, the economic realities of the Global South must also be considered.

Brian Mangwiro from Abalon Capital said: "Millions of livelihoods are deeply intertwined with SHC-related trade and services, not only in Mozambique but across Africa. Our findings underscore the importance of having an informed debate on the SHC sector, especially incorporating the learnings from developing countries. Policymakers must balance the push for improving environmental sustainability with the critical role that the SHC sector plays in frontier economics. Above all, global sustainability efforts should be informed by a clear understanding of the SHC value chain in low-income recipient countries."

Madame Luisa Diogo, the former Prime Minister of Mozambique and Absa Bank Group Board Non-executive Director, who participated in the high-level panel for the report launch, said: "I warmly welcome this new report, which highlights how vital the SHC industry is for Mozambique's economy and the well-being of our people. This sector isn't merely about clothing; it is a source of dignity and opportunity, sustaining families, creating jobs and contributing significant tax revenue toward essential services such as education and healthcare.

"The report outlines the tangible evidence of wide-ranging benefits the SHC trade brings to Mozambique and the African Continent. It underscores the importance of economic diversity to support both Mozambique and Africa's growth. I firmly believe that embracing the SHC trade as part of the green economy will be central to achieving Africa's foremost objectives—poverty reduction, sustainable development, and inclusive growth."

The report also debunks the idea of SHC dumping, emphasising that the local culture is focused on clothing reuse, often passing items down through families or re-purposed by local seamsters. This practice further underscores the importance of the SHC industry in Mozambican society.

The SHC sector has had a transformative effect on the prospects of many families, especially amongst the more marginalised groups such as women and youths, providing employment opportunities, upskilling the labour force and supporting livelihoods. This is consistent with published research reports on the SHC industry across Sub-Saharan Africa, particularly amongst the largest importers such as Ghana, Kenya and Tanzania.

Restricting the trade in Europe and Africa could inadvertently benefit other large exporters, particularly China, which has rapidly expanded its presence in the global apparel market with inexpensive, low-quality 'fast' fashion.

As debates about the future of SHC imports intensify, this report urges informed policy discussions on climate change, waste management, and environmental sustainability to not only safeguard the long-term viability of the sector but ensure global sustainability efforts do not become a zero-sum game.

NOTES TO EDITORS

For more information and to see the report contact: Derrick Amoako at derrick@aeqglobal.com or Ana Grube ana@aeqglobal.com.

About CFA Services

CFA was established in 2007 specialising in monetization and Food Aid programs: working with the U.S. Government propelled food aid commodities in very challenging and developing market locations around the world, particularly Africa. CFA has led post-monetization market impact studies, evaluating the impact of food commodity sales on local food production, impact on price development, assessment of trade displacement, impact on availability and overall utilisation of local logistic capacity. CFA Services, is a limited liability company (LLC equivalent), fully insured and registered in the Republics of South Africa and Mauritius.

About Abalon Capital LDA

Abalon Capital is a professional services organisation that provides advisory services in market assessments, agricultural development, business structuring and SME business design and financial advisory. It focuses areas include value chain analysis and development, capacity building, rural development, operational excellence, business analysis and re-modelling, and developing strategic investment plans. Its clients include corporates (including SMEs), governments, development banks, foundations, local investors, communities and broader civil society. Since inception 10yrs ago, Abalon Capital has worked for major development agencies, including UNHCR, WFP, FAO, ILO, GAIN, EU and iDE Global, among others. Within the consortium, Abalon brings extensive experience in market research, including on monetisation programs in collaboration with CFA Services.

About ADPP Mozambique

ADPP Mozambique is a Mozambican non-governmental organisation working in the areas of quality education, health and well-being, sustainable agriculture and the environment. Created in 1982, the organisation has grown steadily, expanding its interventions throughout the country with the implementation of various projects. It currently employs around 3,300 people and implements more than 60 projects in all the country's provinces, benefiting around 8.2 million Mozambicans every year. ADPP's activities depend on funding from partnerships that have been created and established over more than 40 years of its existence in the country.

Photo: https://mma.prnewswire.com/media/2642303/ADPP_Mozambique.jpg

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