For decades, governments across East Africa have recognised the immense potential of the textile industry to drive economic growth and industrial transformation through manufacturing.
From Kenya and Uganda to Tanzania and Rwanda, the textile and garment manufacturing sector has continued to feature prominently in national development discussions and regional industrialisation strategies. Policymakers have identified the sector as a key driver of economic development, much as it has been in countries such as Britain, Japan, China, Bangladesh, and Vietnam.
This perspective is largely based on the industry’s reliance on labour, which has historically created employment opportunities, especially for women and youth, who form a large portion of the workforce in these countries, and on reducing reliance on imported goods and increasing export earnings.
Over the years, regional governments have implemented various reforms, developed industrial zones, and worked to attract investment to strengthen the textile and garment industries.
However, despite years of industrial reforms, investment incentives, and policy support aimed at strengthening the textile and garment industries, the sector is yet to meet the expectations set by policymakers in terms of growth and competitiveness as the region’s clothing markets continue to be dominated by second-hand clothing, commonly known as Mitumba.
The persistence of the Mitumba trade has generated public debates on the influence of second-hand clothing on local textile production.
While some policymakers argue that second-hand imports undermine and discourage local manufacturing and investment efforts, an increasing number of prominent economic and industrial experts in the region, such as Paul Alaje Yushau Aliyu, contend that the difficulties faced by East Africa’s textile sector are not just due to the influx of second-hand clothes. Instead, they point to a range of deeper structural issues that continue to hinder industrial development throughout the region, noting that until these issues are addressed, the textile sector in East Africa will continue to function below its full potential.
This suggests that the more pressing question confronting East Africa’s textile industry today is whether the industry can emerge without disrupting a second-hand clothing economy that supports millions of livelihoods and provides affordable clothing to consumers.
Mixed Results from Industrialization Efforts
Governments throughout East Africa have allocated significant resources to promote industrialisation by implementing policy reforms, creating industrial parks, and promoting investment initiatives.
These efforts have yielded some positive results across the region. However, due to deep structural issues, the overall development of the textile sector has been inconsistent, and East Africa has remained a small player in global textile production.
Why Consumers Choose Mitumba
It is a fact that there can be no discussion about the future of East Africa’s textile industry without reference being made to the mitumba trade.
Walk through major Mitumba markets across East Africa and the popularity of the trade becomes immediately apparent; second-hand clothing markets attract customers from all income groups for varying reasons, but the simple reality remains consumers buy mitumba because it offers value – quality at an affordable price.
The Structural Challenges Facing Manufacturers
One of the most common issues raised by industry experts is the high cost of production.
High electricity tariffs, insufficient transportation infrastructure, as well as unreliable power supply forcing firms to invest in generating sets are some of the challenges that raise operating costs and reduce the ability of local companies to compete effectively with imported goods.
Access to financing is another major barrier. Many manufacturers find it difficult to obtain affordable long-term credit necessary for expanding production, upgrading equipment, and improving efficiency.
Without adequate investment, firms struggle to achieve the scale required to compete in global markets.
Policy implementation has also become a recurring issue. Although governments have introduced various industrial policies and incentives, industry participants often highlight bureaucratic delays, inconsistent regulations and weak institutions that limit the effectiveness of these measures.
As a result, factories often rely on imported machinery, raw materials and semi-finished products, which limits the potential for stronger industrial links within the domestic economy.
Analysts suggest that these structural limitations help explain the mixed outcomes of industrialisation efforts, despite years of policy support.
In this context, the challenges facing the textile industry cannot be fully understood through trade policy or import competition alone.
Production Costs and the Sustainability Challenge
The sustainability of any manufacturing sector largely depends on its ability to control production costs while maintaining product quality and competitiveness.
In East Africa, various factors continue to influence industrial performance. Energy costs remain one of the most significant. In many countries, manufacturers face higher electricity prices compared to their counterparts in major garment-producing nations. Regular power outages can disrupt production schedules and force reliance on alternative power sources, further increasing costs.
Infrastructure is another key challenge. Efficient transportation systems are crucial for moving raw materials to factories and finished products to markets. However, transport bottlenecks, poor road networks, and inefficient logistics continue to affect manufacturers in various parts of the region.
Labour productivity and skills development also play a crucial role. While East Africa has a large and youthful workforce, manufacturers often report a lack of skilled workers needed for modern textile production. Closing these gaps requires ongoing investment in vocational training and workforce development.
Taken together, constraints related to energy, infrastructure, financing, and productivity create an environment that makes it difficult for local firms to compete on price with imported goods.
Local Manufacturers and the Challenge of Competitiveness
The clothing market in East Africa is highly competitive. Local manufacturers face competition not only from second-hand clothing imports but also from low-cost garments imported from Asia and other global producers.
At the same time, they operate in a business environment characterised by relatively high production costs. This creates what some analysts refer to as a competitiveness challenge.
While consumers often look for affordable clothing options, local producers must cover the costs of power, transportation, labour, and financing costs.
As a result, manufacturers face pressure from both imported used clothing and inexpensive new garments entering from international markets. Industry observers argue that this combination of factors puts considerable pressure on domestic production and investment decisions.
Why Local Textile Supply Chains Remain Weak
Many East African countries grow cotton, but the overall production process is not well developed.
Often, raw cotton is sent abroad, while finished clothing and textiles are brought in from other countries. This makes it hard for local economies to benefit fully from the entire production process.
Economist Ibrahim Shelleng believes that “strong textile industries need connected supply chains that include cotton farmers, cotton processing plants, textile factories, clothing manufacturers, transportation systems, and access to export markets.”
When these connections are missing, producers often depend on imported materials, machines, and parts, which raises costs and makes their products less competitive. The situation is made worse by poor industrial facilities and a shortage of investment in textile processing.
Because of this, local producers find it difficult to reach the level of efficiency needed to compete with products from abroad. Shelleng suggests that building stronger local and regional supply chains could help lower costs, add more value to products, and make textile manufacturing more sustainable in East Africa.
Fitting Mitumba into the Debate
Debates around the import of second-hand clothing have been a significant topic in conversations about East Africa’s textile industry. Advocates for local production claim that the high volume of imported used clothing can increase competition for domestic manufacturers and may also deter investment in textile manufacturing. On the other hand, others believe that the ongoing popularity of Mitumba clothes reflects wider economic conditions. Many consumers continue to prefer second-hand clothing due to its affordability and the wide range of options available, especially when household income levels are limited.
A 2022 report by the Mitumba Consortium Association of Kenya noted that the global trade in second-hand garments amounts to between two and four million tons per year, and this trade is growing. The report also highlighted a significant increase in the value of this trade over recent years. The second-hand clothing industry supports a wide range of employment opportunities, including roles for importers, transporters, warehouse workers, market vendors, repairers, and small business owners.
Research conducted by the Mitumba Consortium Association of Kenya suggests that up to 4.9 million people in East Africa rely on the used clothing trade for their livelihoods. At the same time, some industry experts are questioning the long-term impact of these jobs on development.
Lisa Kibutu, a member of the Kenya Fashion Council, has pointed out that although second-hand clothing meets an important consumer need, many jobs in this sector offer limited prospects for career advancement.
This debate highlights broader issues related to employment, cost of living, industrial growth, and consumer well-being. Many economists argue that Mitumba is just one aspect of a larger challenge facing the region’s manufacturing industry, rather than the main cause of its difficulties.
Lessons from Bangladesh, Vietnam and China
Financial experts like Aliyu Ilias say the experiences of emerging manufacturing economies offer valuable insights for East Africa’s ambitions in the textile sector.
According Ilias, learning from these economies will place East Africa in a vantage position as the region tries to boost its manufacturing sector. Bangladesh successfully transformed its garment industry by combining export-oriented policies, labour-intensive production methods, export processing zones, and integration into global supply chains.
Strategic investments in manufacturing infrastructure and improving export competitiveness helped the country become one of the world’s top garment exporters.
Vietnam followed a similar path by attracting foreign direct investment, setting up industrial zones, and expanding trade agreements to gain access to international markets. Investments in infrastructure and workforce training also played a key role in driving the country’s manufacturing growth.
China’s industrial transformation took place over many years and was supported by large-scale investments in infrastructure, logistics networks, workforce training, technological upgrades, and export promotion.
The development of manufacturing clusters enabled companies to benefit from economies of scale and efficient supply chains. These examples show that successful industrialisation is not just about protecting domestic markets. It usually requires ongoing investments in infrastructure, skills development, financing, logistics, and industrial capacity.
Although East African countries have introduced similar initiatives, challenges such as poor infrastructure, energy shortages, limited financing, and low productivity continue to slow progress.
Regional Trade Frameworks and the Future of the Textile Sector
Regional trade agreements can significantly contribute to the growth of East Africa’s textile industry.
The East African Community (EAC) and the African Continental Free Trade Area (AfCFTA) aim to increase regional cooperation by lowering trade barriers and making it easier for goods to move between countries.
In the words of Sam Chidoka, a financial expert, “these larger trade areas may offer chances to increase production, reduce costs through economies of scale, and create stronger supply networks for textile manufacturers”. He believes that access to more markets can also make investing in manufacturing more appealing.
However, trade agreements alone are not enough to solve all the problems facing the industry.
Their impact will largely depend on additional efforts in improving infrastructure, energy access, financing options, and building industrial capabilities.
Addressing Structural Challenges
To improve the industry’s future, it is crucial to address long-standing structural issues.
This includes enhancing electricity supply, lowering production costs, improving transport systems, increasing access to financial services, and strengthening local supply chains.
Policies like special economic zones, export support programmes, industrial clusters, and training initiatives for workers could also help raise productivity and attract investment.
Although discussions about second-hand clothing imports continue, many experts believe that the greater challenge lies in creating conditions where local manufacturers can compete effectively in both regional and international markets.
Conclusion
East Africa’s textile industry is a key part of the region’s plan for industrial development. Despite ongoing policy efforts and investment, progress has been limited by structural problems that affect competitiveness and productivity.
The debate around second-hand clothing imports, while important, is only one part of a larger issue. High energy prices, poor infrastructure, limited financing, weak supply chains, and productivity gaps are major obstacles to growth.
The experiences of countries like Bangladesh, Vietnam, and China show that lasting industrial progress depends on long-term investments in infrastructure, skills, logistics, and manufacturing capabilities.
While regional trade frameworks may offer new opportunities, their success will rely on how well the underlying structural problems are tackled.
As East African governments pursue their industrial development goals, the main question may not be whether to restrict second-hand clothing, but rather how to build a competitive manufacturing environment that supports long-term industrial growth.
