South Africa’s trade union movement is stepping up pressure on the government to restrict the operations of Shein and Temu, arguing that the rapid growth of international online retailers is putting local manufacturing jobs at risk.
The Congress of South African Trade Unions (COSATU) adopted a resolution at its 15th national congress to campaign for a ban on the two e-commerce platforms. The move follows a proposal by the Southern African Clothing and Textile Workers’ Union (SACTWU), which has raised concerns about the impact of overseas retailers on the domestic clothing and textile industries.
The campaign comes as both platforms have attracted growing numbers of South African shoppers with competitively priced products and extensive digital marketing. However, their expansion has intensified debate over whether local manufacturers and traditional retailers can compete on equal terms.
A ban remains a union demand rather than an implemented government policy. Industry representatives have also questioned whether prohibiting the platforms would be the most effective way to protect employment.
Online retail growth puts local jobs under scrutiny
Shein entered the South African market in 2020, followed by Temu in 2024. Both companies were founded in China and continue to maintain substantial manufacturing operations there, although their corporate structures and commercial activities now extend internationally.
Figures cited by Reuters in 2025 illustrate the platforms’ growing presence. Together, Shein and Temu accounted for approximately 3.6% of South Africa’s retail market, with combined sales of R7.3 billion in the previous year.
Their business models have challenged established retailers through low prices, targeted promotions and online shopping experiences that appeal to price-conscious consumers. While shoppers have gained access to a wider range of affordable goods, local businesses have raised concerns about the competitive pressure facing domestic suppliers.
The Localisation Support Fund (LSF) examined the potential employment consequences in a study published in 2025. According to the research, international online retailers were associated with approximately R960 million in lost local manufacturing sales between 2020 and 2024.
The study also identified 2,818 manufacturing jobs and 5,282 retail jobs as having been displaced during the period.
Its longer-term projections suggest that the potential impact could become more significant by the end of the decade. Under the study’s worst-case scenario, more than 34,000 jobs across retail and manufacturing in the clothing and textile sector could be displaced by 2030.
These figures represent research estimates and a worst-case projection, rather than a confirmed forecast that all the identified jobs will disappear.
For unions, however, the findings strengthen the argument that South Africa needs measures to support domestic production and protect workers from the effects of changing retail patterns.
Retail industry calls for a broader response
Michael Lawrence, executive director of the National Clothing Retail Federation, has urged the government to examine how international e-commerce companies operate in South Africa before considering a blanket prohibition.
Speaking to CapeTalk, Lawrence described an outright ban as a single-dimensional response to a more complicated problem. Although he acknowledged that such a measure might have an effect, he questioned whether removing the platforms entirely would be the best solution.
He also warned that banning Shein and Temu could reduce competition in the retail sector, highlighting the challenge of balancing employment protection with consumer choice.
Tax compliance is another central issue in the dispute. The South African Revenue Service (SARS) has taken steps to address concerns about the treatment of low-value imported goods, particularly products purchased through online platforms.
In August 2024, SARS announced that value-added tax (VAT) would apply to imported goods valued below R500. The revenue authority said it had received legitimate concerns about importers bringing goods, especially clothing, into the country without paying the customs duties and VAT required under the applicable rules.
Before the change, low-value imports benefited from different VAT treatment. The revised approach was intended to address concerns surrounding e-commerce imports and the obligations of importers.
However, Lawrence remains unconvinced that the measures have fully closed the gaps identified by local retailers.
The debate now centres on how South Africa should respond to the growth of international online shopping while maintaining fair competition, protecting domestic manufacturing and ensuring that import taxes are properly collected.
COSATU’s campaign adds pressure on policymakers, but the available statements do not establish that a ban has been approved by the government. Any future decision will need to address the competing interests of workers, businesses and consumers.