The East African Community (EAC) partners will adopt a three-year strategy (2017-2019) for the phase-out of importation of used clothes and shoes, through increased levy on these products, compliance with EAC Standards licensing of importers, and categorisation of products per bale of imports. EAC partner agreed to grant garments and textiles manufacturers a three-year waiver of duties and value added tax (VAT) on inputs, fabrics and accessories not available in the region to boost local production and reduce the cost of production. This is one of the strategies to promote textiles and leather industries while slowing down the importation of used clothes, shoes and other leather products from outside the region.

A policy on the recommendations on the modalities for promotion of textile and leather industries states that “The EAC shall grant all EPZ companies an increase of domestic quota supply from the current 20 per cent for a period of three years.

All partner states producing cotton lint to set a target of at least 30 per cent local value addition to domestic cotton lint. The threshold should be increased to 50 per cent within five years.” The EAC has set a four-band tariff structure for cotton, textiles and apparels to promote cotton yarn and fabric production.

The recommendations follow a directive by the EAC Heads of State last year for a study to be conducted on the modalities for the promotion of textiles and leather industries in the region as well as mechanisms for stopping the importation of used clothes, shoes and other leather products from outside the region. To implement the two directives, the Secretariat conducted two separate studies on cotton, textile and apparels value chains; and on leather and footwear value chain.

The study notes that EAC region has the potential to become a major player in the regional production and trade in cotton, textiles and apparels products. Further, the study reveals, the growth of used clothes imports hampers the development potential in the sector.