A Cart Too Far? South Africa’s push to ban Shein and Temu

Johannesburg – South Africa’s largest trade union federation, the Congress of South African Trade Unions (Cosatu), has backed calls for the government to ban online shopping platforms Shein and Temu, warning that their rapid growth threatens local manufacturing jobs and businesses.

The resolution, adopted at Cosatu’s 15th national congress, followed a proposal by the Southern African Clothing and Textile Workers’ Union (Sactwu) to restrict the platforms’ operations in the country.

“Delegates endorsed the resolution to campaign for the banning of offshore online shopping giants Shein and Temu to facilitate support for the local market and, in turn, stimulate job creation,” Cosatu said, according to BusinessTech.

The unions argue that the platforms’ low prices and aggressive marketing are undermining domestic retailers and manufacturers. A 2025 Localisation Support Fund study estimated that international online retailers contributed to R960 million in lost local manufacturing sales, 2,818 associated manufacturing jobs and 5,282 displaced retail jobs between 2020 and 2024, BusinessTech reported.

Worst-case scenario

The study warned that, under its worst-case scenario, more than 34,000 retail and manufacturing jobs could be displaced by 2030.

However, business representatives and economic analysts have questioned whether an outright ban would address the underlying problems facing South African manufacturers.

According to Daily Maverick, National Clothing Retail Federation executive director Michael Lawrence described a ban as a “single-dimensional response” to a broader challenge.

Economic strategist Refilwe Moloto also warned that protectionist measures could encourage unregulated trade rather than resolve the industry’s structural weaknesses.

“Protectionist measures of that nature are likely to encourage, below the table, irregular and non-regulated trading,” she told Daily Maverick.

Significant competitors

The debate comes as South African authorities tighten controls on low-value imports. The South African Revenue Service removed a concession that had allowed parcels valued below R500 to enter under a flat 20% customs duty without VAT, with further tariff and declaration changes following.

The reforms have already affected the platforms’ growth. ITWeb, reporting on the Online Retail in South Africa 2026 study, said Shein’s annual growth slowed to 11% in 2025, while Temu recorded average monthly declines of 42%.

Despite the slowdown, the platforms remain significant competitors. According to Reuters, which reported on the Localisation Support Fund study in August 2025, Shein and Temu generated a combined R7.3 billion in South African clothing, textile, footwear and leather retail sales in 2024, representing 3.6% of the overall market and 37.1% of its online segment.

The latest calls for a ban therefore intensify the debate over how South Africa can protect domestic jobs and ensure fair competition without unnecessarily limiting consumer choice or encouraging illicit imports.