African retailers face mounting pressure from Shein and Temu
Chinese online retail giants Shein and Temu are rapidly gaining ground across African markets, raising concerns about job losses in local manufacturing and retail. South Africa offers the clearest evidence of the impact so far.
Cheap clothing, jewelry, shoes and accessories delivered straight to the door have made Chinese platforms Shein and Temu hugely popular among young, urban shoppers across Africa. Their combination of rock-bottom prices, vast product ranges and heavy social media promotion has reshaped shopping habits. But as more spending shifts directly to Asian suppliers, questions are growing about the consequences for local retailers, manufacturers and jobs.
South Africa as a test case
South Africa provides the clearest picture yet. Shein entered the market in 2020, with Temu following in 2024. A study commissioned by the Localization Support Fund found the two platforms generated roughly 7.3 billion rand (about $405 million) in sales in 2024 — 3.6% of the total clothing, textile, footwear and leather market, but already around 37% of the sector's online sales. The same study estimates that 2,818 manufacturing jobs and 5,282 retail jobs failed to materialize during that period, a combined loss of about 8,100 jobs, with more than 34,000 additional jobs potentially at risk by 2030.
Simon Eppel, research director at the South African Clothing and Textile Workers' Union, says the platforms have rapidly captured market share and undercut local manufacturers. The union has gone as far as proposing a ban on the apps in South Africa as a way to counter the price pressure.
Price competition squeezes local business
Industry observers note that platforms like Shein can move at a pace local retailers struggle to match, using data on demand trends alongside influencers and constant new offers. Tsonam Cleanse Akpeloo, chairman of the Association of Ghana Industries' Accra chapter, says the low prices are especially attractive in budget-conscious markets, and similar pressures are being felt in sectors such as aluminum and hardware in Ghana.
Nigeria is another key market, with Temu operating a dedicated local platform and Shein expanding through influencer marketing. Elsewhere in Africa, products often arrive indirectly via freight forwarders, as is the case for a customer in Guinea-Bissau who receives Shein orders through an intermediary address in Portugal.
Taxes and fair competition
South Africa has tightened rules on small online imports to close a tax gap that had favored foreign platforms over local businesses, which must cover rent, staff and taxes. Akpeloo is calling for stronger customs enforcement and action against smuggling.
Analysts say the real issue is not simply China versus Africa, but whether local businesses can compete on equal terms — and whether Africa will remain a consumer market or also become a producer in the digital economy.
