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Global Mitumba Trade Estimated At Over $8.0 Billion

BY Soko Directory Team · April 21, 2022 04:04 pm

The scale of international wholesale trade in second-hand garments is estimated to be between 2 and 4 million tonnes of used items traded per year and is increasing.

The annual value of the trade was reported in 2016 to be between $1.5 billion and $3.4 billion and is estimated at over $8.0 billion currently according to a new report by the Mitumba Institute Research Centre (MIRC), a new research institute that focuses on the vitally important mitumba trade.

Dubbed “Global Production Networks of the Second-Hand Clothing Industry,” the report’s aim was to assess the strategic importance of the global second-hand clothing industry for Africa and to make recommendations for the development of the second-hand clothing sector in the future.

Read More: MIRC to Release Mitumba Sector Report Highlighting Its Economic Role

According to the report, at present only 20 percent of post-consumer garments are actually collected. Of these, approximately 40 percent end up in the second-hand clothing market – either sold through a charity shop in the same country as the donation was made or in the international second-hand clothing market. As such, the scope to increase reuse and expand the second-hand clothing market is enormous. Doing so is likely to yield significant global and local environmental benefits.

The report also pointed out that Africa has one of the largest used clothing markets in the world. It is believed that four-fifths of those on the continent wear second-hand clothes, mainly imported from the USA, Europe, India and The global environmental benefit of such reuse is considerable.

Speaking during the launch, the Chair of Mitumba Association of Kenya, Teresia Njenga said:

“We are pleased to share this report with you today, at an important time for all of us in Kenya with the election just a few months away.

 “The academic research shows the vital importance that mitumba has in producing employment opportunities, promoting environmentally responsible consumption, and generating revenue for governments.

 “It is therefore imperative that Kenya sees long-term growth and development strategies that factor in the increased global demand for second-hand clothing, as environmentally conscious consumers seek more reused products.

 “We urge all of those who represent the people of Kenya to read our report and join with us in doing everything possible to guarantee its future in Kenya and across Africa”

At the same time, a significant body of authoritative research links the relative decline of the manufacturing of clothing in Africa to the liberalization of the textiles sector through exposure to international markets, rather than an increase in the size of second-hand clothing.

Therefore, it is very unlikely that measures to undermine the second-hand clothing industry would lead to any revival in the domestic production sector for textiles.

In particular, the increasing flow of cheap ‘fast fashion’ products from Asia into Africa is likely to continue to undermine African domestic manufacturing of clothing, with negative consequences for employment and GDP.

The second-hand clothing industry, on the other hand, is likely to remain a continuing source of employment, tax revenues, and wealth creation as long as national governments provide a competitive operating environment that is conducive to the sector’s long-term development.

Read More: Mitumba Sector is a Key Revenue Earner for The National Government

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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