SA trade union COSATU wants Temu, Shein banned - Connecting Africa

eCommerce Regulation Social Technology Enterprise Networking News SA trade union COSATU wants Temu, Shein banned The Congress of South African Trade Unions (COSATU) has called for a ban on Shein and Temu, saying the platforms are hurting local retailers, weakening domestic manufacturing and jeopardizing jobs. Matshepo Sehloho , Associate Editor , Connecting Africa October 20, 2026 3 Min Read (Source: Image by Magnific, logo by Temu) The Congress of South African Trade Unions (COSATU) has called for a ban on Shein and Temu, saying the online global retail platforms are hurting local retailers, weakening domestic manufacturing and jeopardizing jobs. The resolution, adopted at COSATU's 15th National Congress, reflects the federation's view that restricting the platforms would safeguard local businesses, bolster domestic manufacturing and support job creation in South Africa. The resolution follows a call by the Southern African Clothing and Textile Workers' Union (SACTWU) to ban the online retailers in South Africa, amid growing concerns that an influx of low-cost imported goods is eroding the competitiveness of local manufacturers and retailers. The unions contend that a ban would steer consumers towards locally made products and help preserve and create jobs. However, no official ban has been imposed, and neither platform has been ordered to leave South Africa. Related: South African online shoppers prefer local to Temu, Shein "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. Shein and Temu South African dealings The Chinese e-commerce platforms have gained traction in South Africa in recent years. Since launching in South Africa in 2020 and 2024 respectively, Shein and Temu have rapidly expanded their presence by selling a wide variety of goods directly to consumers at highly competitive prices, intensifying pressure on traditional retailers. However, their growth in the market has been slowed mainly due to changes to import taxes that took effect in November 2024. The call for the ban comes amid growing concerns that an influx of low-cost imported goods is eroding the competitiveness of local manufacturers and retailers. (Source: Image by drobotdean on Magnific) The South African Revenue Service (SARS) changed how small parcels under R500 (US$30.37) are handled, removing a previous concession that allowed small-value parcels to enter the country at a flat 20% duty with no value-added tax (VAT). The result was that these parcels now face standard 45% import duty plus 15% VAT, matching the rates applied to larger commercial imports. This was a blow for Shein and Temu, which are regarded as cheaper than local retailers, and pushed up costs for consumers. Import taxes impact clear According to the Online Retail in South Africa 2026 report by World Wide Worx, in partnership with Mastercard, Peach Payments and Ask Africa, the impact of changes in import taxes has been clear. Industry data compiled by MustangPay and the South African International E-Commerce Association shows that cross-border e-commerce growth slowed to 7% in 2025, down from the annual growth rates of 30% to 50% recorded before 2024. Related: Temu launches warehouse in South Africa The market still remains large, however, with approximately 19 million cross-border platform orders placed during 2025, representing 18.6% of all South African e-commerce transactions. The data also shows that Shein's growth slowed from 30% to 50% annual growth to 11% in 2025, while Temu recorded an average monthly decline of 42%. The World Wide Worx report said that both platforms have responded by moving toward locally compliant supply chains and local merchant programs. Temu introduced local-dispatch warehouse services in South Africa in July 2025, stocking some goods domestically through logistics partners for faster delivery. "This is strategically significant: the next phase of cross-border competition will depend less on parcel-by-parcel import advantages and more on local inventory, fulfilment speed and marketplace participation," the World Wide Worx report explained. "A Shein or Temu operating through local fulfilment and local sellers is a materially different competitor: slower to scale, more expensive to run, but far harder to regulate away," it added. Read more about: Southern Africa About the Author Matshepo Sehloho Associate Editor, Connecting Africa Matshepo joined Connecting Africa as Associate Editor in May 2022. The South Africa-based journalist has over 10 years' experience and previously worked as a digital content producer for talk radio 702 and started her career as a community journalist for Caxton. She has been reporting on breaking news for most of her career, however, she has always had a love for tech news. With an Honors degree in Journalism and Media Studies from Wits University, she has aspirations to study further. 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