• Over200,000 formal and informal jobs,directly supporting over 1 million livelihoods
• $650 per monthon average in earnings for well established vendors (compared to the national minimum wage of c.$90 per month)
• Basic clothing needs forat least 85% of the population
• $35 million in taxestowards the country's budget, which supports 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.

Report findings also suggest that reviving Africa’s textile sector is more complex than is often acknowledged. Without substantial investment to boost local production and develop a competitive advantage in clothing manufacturing - particularly when competing with countries like China, India, and Bangladesh - significant import substitution in the clothing sector seems unlikely. Rather than viewing the SHC trade and local textile industries as opposing forces, the report concludes that both sectors can thrive in tandem. 

Brian Mangwiro from Abalon Capital said: “Policymakers across Africa must recognize the millions of people who depend on SHC when considering efforts to revive local textile manufacturing industries. For Mozambique specifically, our forecasts suggest that without any significant improvement to GDP growth over the next decade, SHC will continue to be the main source of affordable clothing. Instead of targeting SHC imports, African nations should explore more pragmatic solutions such as strategic cross-country collaborations to strengthen areas of competitive advantage.”

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 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. 

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.

Ends

For more information and to see the report contact: Arnaldo Banze at  This email address is being protected from spambots. You need JavaScript enabled to view it.

NOTES TO EDITORS

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.