Effects of importing second-hand clothes on supply chains: insights for Africa’s textiles and apparel industry

Abstract

Some African countries import a large number of second-hand clothes. This paper examines how importing second-hand clothes affects Africa’s textile and apparel (TA) supply chain. We find that the availability of second-hand clothes could benefit consumers because it provides a new option to consumers. However, import bans and the importation of second-hand clothes may help or hurt local TA manufacturers and workers’ incomes depending on the cost structures for new and second-hand clothes. Imposing import tariffs restrains the second- hand clothing business, helps local TA manufacturers and improves consumer welfare if the quality of new clothing is competitive. Our findings provide insights into how governments use distribution management to protect local TA manufacturers in Africa. Encouraging agents to sell in the local market is desirable if a government wants to help local manufacturing firms and workers. However, if a government wants to collect more tariffs, not allowing second-hand clothing importers to sell through retailers is wise.