Why Rwanda Boycotted the Import of Second hand Clothes With High Taxes
Used clothes are banned in Rwanda
Today, there’s stiff competition in any field. Whether it’s electronics or computers, businesses face immense challenges from their contenders. Many ventures shut their operations after witnessing huge losses. On the flip side, some used clothing suppliers make a fortune even during uncertain times. How? These smart businessmen sell used products such as second clothes. Used clothes are in high demand all over the world. The scene is more convincing in Africa. Better margins and low competition drive any used clothes buyer in the region.
However, Rwanda, an East African country, has boycotted the import of second clothes.
Why has Rwanda stopped wholesalers from selling used clothing through heavy taxes?
Despite better prospects, Rwanda curbed the import of second clothes. The decision came as a setback for many wholesalers, retailers, and suppliers of used clothes. The African continent is renowned for importing second hand clothes sale online. However, Rwanda took a bold and surprising decision on used clothing sell. So, what could be the reason for this step? Let’s analyze each reason to understand the point.
Importance to agriculture
Importance to agriculture（Second hand Clothes With High Taxes）
Any nation tries to capitalize on its strengths. At the same time, countries impose restrictions that impact their main strength. Agriculture is the key industry in Rwanda. A majority of its population is employed in this primary sector. So, the nation has to ensure that agriculture flourishes.
At the same time, it needs to ensure that the sector stays protected from all possible threats. As a wholesaler, you may wonder how used clothing may impact Rwanda’s agriculture.
Protecting agriculture stands
First of all, the earning potential is higher in the primary sector compared to any trading industry in the region. So, protecting agriculture stands as a better option for the GDP of the country. Instead of importing second clothes, Rwanda finds better economic development through agricultural production. Also, the nation’s agro-products such as tea, coffee, and French beans are in great demand all over the world.
Besides common products, Rwanda enjoys an edge in many value-added agro-products. Popular examples include canned tomatoes, macadamia nuts, mushrooms, and honey. By exporting all these items, the nation receives immense foreign exchange. The used clothing market, on the other side, impacts the inflow of foreign currency. On the contrary, currency flows outwardly.
Protection to the domestic textile industry
Any nation would like to promote its domestic industry. While imports are welcomed, exports stand as a top priority. Now, the domestic textile industry of Rwanda gets badly hit by the import of used clothes. How? Second clothes are available at cheap rates compared to clothes in the local market.Many cloths wholesalers are choosing to sell used clothes in Rwanda, Especially for bulk used clothes wholesalers. That gives rise to a never-ending threat to the local textile industry.
Many textile factories have shut their operations. Also, a substantial number of units are on the verge of extinction. As a responsible country, the government will take concrete steps to protect its domestic textile industry. So, Rwanda has imposed heavy taxes on any used clothes buyer from foreign nations. By doing so, the country provides relief to local businesses in the textile field.
Growing unemployment is a major concern in many countries. Governments across the globe pay close attention to sectors that generate more employment. After agriculture, the textile sector presents immense employment opportunities. You may argue that the import of used clothing from bales clothing company may boost the trade of second clothes and provide jobs to many Rwandan citizens. Right! Well, you’re only partially correct.
Used clothing sell doesn’t offer employment opportunities like the local textile industry. Rwanda’s textile industry comprises handicraft cooperatives and small and medium enterprises in the knitting and weaving sectors. These businesses provide more job opportunities. Also, they’ve much better potential. So, imposing higher taxes on imports appears to be a better bet to safeguard the local textile industry and the employment opportunities thereon.
Focus on electronics（Second hand Clothes With High Taxes）
The policymakers in Rwanda perceive electronics as a major economic and development factor. The nation is all set to carry out industrial reform and renewal. Rwanda currently focuses more on the electronics sector and seeks more significant investment in the field. They take the example of Japan in this respect. Japan has flourished and advanced economically through the electronics industry. Rwanda intends to mimic the success of Japan and other nations in this respect. So, the country plans to utilize its resources on electronics instead of used clothing.
Second hand Clothes With High Taxes Conclusion
Most exporters to Africa have a selfish mindset. They ONLY intend to make money without contributing to the said economy. It’s here they lag and lose the region. Later they understand that they made a huge mistake. It’s best to have a reciprocal approach when selling used clothing in Africa. You can even motivate import-resisting nations to open up doors for any used clothes buyer with the right approach.