JOB LOSS FEARS: Cosatu calls for government ban of Shein and Temu to protect local jobs
While labour unions call for drastic government intervention to halt job losses, economic experts caution that an outright ban could fuel black-market trading rather than fix South Africa’s underlying manufacturing challenges.
The Congress of South African Trade Unions (Cosatu) has called for a ban on international e-commerce platforms Shein and Temu to protect local jobs, but economic experts warn that such a move could lead to black-market trading instead of solving South Africa's manufacturing challenges. Cosatu's Southern African Clothing and Textile Workers’ Union (Sactwu) presented a 2025 study estimating that Shein and Temu could cost up to 34,000 local jobs by 2030.
The unions displayed placards at Cosatu’s 15th National Conference in Johannesburg, illustrating the potential job losses in various industries. Cosatu’s president, Susan Khumalo, emphasized the pressure these companies place on local retailers and workers, urging members to delete their Shein and Temu apps and source goods from local retailers.
However, Shein's growth has slowed due to a 2025 tax amendment by the South African Revenue Service, which removed tax exemptions on imported goods priced below R500. This has led to Shein's annual growth rate dropping from 30% to 50% to just 11% in 2025, while Temu has seen average monthly declines of 42%. While the 34,000 job loss figure might be outdated, economic strategist Refilwe Moloto cautioned that an outright ban could lead to irregular and unregulated trading, negatively impacting the economy.
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