Why Rwanda Boycotted the Import of Second hand Clothes With High Taxes
Why Rwanda Boycotted the Import of Second hand Clothes With High TaxesToday, 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 entrepreneurs 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 and retailers. The African continent is renowned for importing used clothes. 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.
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Importance to agriculture
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.
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.
The earning potential is higher in primary industries
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. 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.
Unemployment concerns
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 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
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.
How to develop the secondhand clothing industry in Africa at high speed and bring economic benefits?
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.
Quality
Quality rules in any business. Importers and exporters should thrive for quality only, nothing less. They can use the latest technology to identify substandard products and train their staff to get rid of poor-quality used clothing. That way, retailers and semi-wholesalers will trust overseas exporters and build multiple second clothes markets, thus contributing to employment and economy thereon.
Latest range
Even users in the low-income class in Rwanda and other nations look for variety. A limited range deters any used clothes buyer from checking overseas goods. Exporters can expand their variety by depending on products from multiple suppliers and states. By doing so, they can satisfy users. Happy buyers will buy more second clothes, thus paving the road for enriched development.
Economic investments
Exporters and wholesales earn huge money when they sell used clothing in Rwanda and other markets. Yet, most of them hardly bother about the economic conditions of the region. Passing on a portion of their profits to users in some way can boost economic development and trade concurrently.
For example, wholesalers can build clean and safe trading environments. Plus, they can contribute to charity and schools. That way, the governments will get pleased and welcome imports with open hands.
Rwanda Boycotted the Import of Second hand Clothes–Source from reliable exporters
Selling used clothing sourced from well-known suppliers such as Hissen global is another way to develop the market. The brand buys raw materials from well-developed Chinese cities. So, the condition of used clothes is much better. Plus, the company has strict quality control and grading measures. Also, they ensure timely supply at the best rates. By purchasing second clothes from Zagumi, you can ensure the on-time supply of high-quality goods at low rates and please the government and users.
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