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Global trade in reused textiles needs secure future

Nakakero Market in Kampala, Uganda. Foto: Shutterstock

Second-hand clothing is stimulating billions of dollars in trade and supporting hundreds of thousands of green jobs across Europe and Africa, according to a report from a leading economic forecaster. It is calling for policies to support and strengthen the circular industry.

Oxford Economics, part of the prestigious University of Oxford in the UK, calculates that the sector stimulated an estimated EUR 7 billion contribution to the EU and UK’s GDP in 2023, of which the sector generated EUR 3 billion itself. In Germany and the UK alone, the industry contributed EUR 670 million and EUR 420 million respectively.

According to the research, which was commissioned by Humana People to People and Sympany+, the sector supported an estimated 150 000 jobs in the EU27+ in 2023. Of these 110 000 were green jobs directly in the industry, with opportunities particularly for people with little formal education. Eight out of 10 of the workforce were women.

In Ghana, meanwhile, second-hand clothing from Europe contributed an estimated EUR 69 million to the country’s GDP, supporting 65 000 formal and informal jobs in 2023. EUR 15 million was contributed to Kenya’s GDP and EUR 9.8 million to Mozambique’s. There were 6 300 people in Kenya’s formal workforce and at least 68 000 working informally. In Mozambique, 5 700 formal jobs and at least 15 000 informal jobs were supported.

Comprehensive analysis

The report, ‘The Socio-Economic Impact of Second-Hand Clothes in Africa and the EU27+’ will be valued by those who defended the global trade in textiles at a recent special BIR conference in Brussels.

Oxford Economics says it work is the first comprehensive analysis of the sector’s entire value chain and an attempt to quantify the sector’s socio-economic impacts across two continents.

Up to 47% of imported second-hand clothing to Ghana in 2023 was from Europe. This compares to Mozambique’s direct imports accounting for 18% and Kenya’s 13%. Only in Ghana are imports from Europe growing. In Kenya and Mozambique, while overall second hand clothing imports continue to grow, the EU share is falling.

Overlooked sector

Johanna Neuhoff from Oxford Economics says: ‘Second-hand clothing is often overlooked in the broader debate on sustainable development, yet this report clearly shows its economic power. Our findings underscore the need for policies that support and strengthen this circular industry – ensuring it continues to serve as a bridge between environmental sustainability and inclusive economic growth.’

Discussions at EU level to finalise changes to the Waste Framework Directive, which affects the second-hand clothes trade, are due to start this month. This report urges decision makers to support textile reuse operators.

With mandatory separate textile collection coming into force across the EU in January 2025, the researchers say it is it imperative for these discussions to reach a deal swiftly, providing certainty to the sector.

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