The Congress of South African Trade Unions (COSATU) said delegates at its 15th National Congress endorsed a campaign to ban the offshore online retailers Temu and Shein in South Africa, arguing the move would bolster the local market and stimulate job creation.
Union action aims to shield local clothing and textile jobs
In a statement issued following its congress, COSATU said delegates supported a resolution to “campaign for the banning of offshore online shopping giants Shein and Temu to facilitate support for the local market, in turn stimulate job creation.” The union linked the proposed action to protecting employment in the clothing and textile sectors.
The call by COSATU echoed an earlier appeal from the Southern African Clothing and Textile Workers’ Union (SACTWU), which has also urged tighter measures against the two platforms.
Industry warns a ban is not a simple solution
Not all stakeholders agree that an outright ban is the right response. Michael Lawrence, executive director of the National Clothing Retail Federation, told Cape Talk that a ban would be a "one-dimensional response to a multidimensional problem" and urged government to consider more nuanced measures.
“What we do think is necessary is that government commits to looking at it with a lot more nuance… It’s easy for a union to call for a ban. That’s a one-dimensional response,”
Lawrence said offshore operators were reaching South African consumers through multiple pathways and cautioned against actions that could be anti-competitive. He acknowledged that online entrants including Temu and Shein had contributed to job losses but said a simple ban may not be the ideal or sufficient remedy.
Evidence of job losses referenced but not quantified
Lawrence pointed to findings from the Localisation Support Fund study as indicating that there have been job losses in manufacturing and retail linked to the arrival of these platforms. He also expressed concern that measures by the South African Revenue Service (SARS) to close perceived loopholes used by such platforms may not yet have been fully effective.
The COSATU resolution and industry response frame a wider debate about how to balance protection of local industry and employment with competition policy, consumer access to lower-cost goods, and cross-border digital trade.
- COSATU: Endorsed a campaign to ban Temu and Shein to protect local markets and jobs.
- SACTWU: Has called for tighter action against offshore platforms.
- National Clothing Retail Federation: Warns a ban is a simplistic response and urges nuanced government action.
| Stakeholder | Position |
|---|---|
| COSATU | Campaign for ban on Temu and Shein |
| SACTWU | Support ban, protect jobs |
| National Clothing Retail Federation | Opposes simple ban; calls for nuanced approach |
Policy implications and next steps
The call for a ban places pressure on government and regulators to respond. Key policy considerations include:
- How SARS and other enforcement bodies will monitor and collect duties and VAT on cross-border e‑commerce transactions.
- Whether competition policy or targeted trade measures could address market distortions without restricting consumer choice.
- Measures to support localisation and job retention in manufacturing and retail.
Stakeholders will be watching for any formal proposals from COSATU that could prompt parliamentary debate or regulatory reviews. The debate is likely to include submissions from industry bodies, labour unions and trade experts on both the economic impact of offshore platforms and the practicality of regulatory remedies.
For now, the resolution signals growing union determination to force action on the issue and ensures Temu and Shein’s South African operations will remain a flashpoint in discussions about jobs, trade and digital commerce policy.
