Ban Shein and Temu in South Africa
Trade unions have called for a ban on global online retailers, such as Temu and Shein, to protect local manufacturing jobs.
During its 15th national congress, the Congress of South African Trade Unions (COSATU) said it would campaign to ban the retail giants in the country.
This followed a recommendation from the Southern African Clothing and Textile Workers’ Union (SACTWU) that these e-commerce sites should be banned in the country.
“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,” it said.
Both Shein and Temu have exploded in popularity in recent years, largely due to low prices and aggressive marketing in South Africa.
In 2025, Reuters reported that the two online sellers accounted for roughly 3.6% of South Africa’s retail market, with R7.3 billion in sales across the two platforms in the prior year.
Shein was the first of the two companies to operate in South Africa, entering the market in 2020, with Temu following in 2024.
“Both have disrupted the local retail landscape through aggressive pricing, strategic marketing, and using tax loopholes that initially gave them a competitive edge over local retailers,” Reuters said.
Both e-commerce sites were founded in China and still maintain extensive manufacturing operations there, although their corporate structures have since expanded globally.
In 2025, a study by the Localisation Support Fund (LSF) found that global e-commerce companies were a threat to South African manufacturing jobs.
The study noted that, between 2020 and 2024, international online retailers had cost roughly R960 million in local manufacturing sales and had caused thousands of job losses.
It said the cost included “R960 million in lost local manufacturing sales, 2,818 associated manufacturing jobs, and 5,282 displaced retail jobs from 2020 to 2024.”
The study also found that job losses due to online retailers such as Shein and Temu could be far higher by 2030.
In its worst case scenario, the study said, “more than 34 000 retail and manufacturing jobs could be displaced in the retail-clothing and textile sector by the end of this decade.”
Calls for a ban
During its national congress, COSATU resolved to call for both Shein and Temu to be banned in South Africa.
Speaking to CapeTalk, National Clothing Retail Federation executive director, Michael Lawrence, said the government should pay greater attention to how online retailers operate in South Africa.
He said that banning e-commerce sites such as Shein and Temu would be a “single-dimensional response” to a larger issue.
“We have a cautious response saying ‘yes, that could work, but it certainly is not an ideal solution to just ban everything,'” he said.
He raised concerns that an outright ban on Shein and Temu could dissuade competition in South Africa’s retail sector.
While the South African Revenue Service (SARS) has made recent efforts to combat low-value imports entering South Africa, Lawrence said he doubts their effectiveness.
“What we certainly are not comfortable about yet is that the so-called closing of the loopholes by SARS has been effective,” he said.
Previously, low-value imports were not subject to Value-Added Tax (VAT), but SARS recently amended this rule.
In August 2024, SARS said VAT would apply to imports worth less than R500, after noting “legitimate concerns” about the e-commerce sector.
“SARS noted legitimate concerns that have been expressed in the importation of several goods, especially clothing, via e-Commerce by a number of importers who have not been paying the obligatory Customs duties and VAT on these imports,” SARS said at the time.
Despite these changes, Lawrence said there are still doubts about whether e-commerce companies are paying the correct tax amounts on imported goods.
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