News & Insights | Textile Industry

Misconceptions about Ghana’s SHC sector.

Published: May 22, 2024
Author: TEXTILE VALUE CHAIN

The Ghana Used Clothing Dealers Association (GUCDA) disputes the international perception of the second-hand clothing industry in Ghana as Western waste dumping. They argue that this narrative is economically unsound and patronizing. In a recent report, GUCDA highlighted the positive socio-economic and environmental impacts of the SHC trade in Ghana, criticizing the global acceptance and propagation of the misleading waste narrative.

GUCDA’s report states that waste items in imported bales make up only about 5% on average, contradicting figures promoted by activists. They believe that embracing the SHC sector can help Ghana move towards a circular economy, supporting the country in achieving UN Sustainable Development Goals 13, 14, and 15.

The SHC trade in Ghana has a wide positive economic and social impact, with significant contributions to government revenues in 2022. The top exporters to Ghana are the United Kingdom, China, and Canada, with imports worth $164 million. Ghana also exports used clothing to neighboring countries, serving as a regional hub for this trade and benefiting local and regional economies. The trade dynamics are complex and impactful, according to GUCDA.

The research found that 92% of retailers in Ghana rely on secondhand clothing as their main source of income, earning between GH¢ 500 and GH¢ 1,000 per month. The sector includes small, medium, and large businesses, showing economic diversity. The consumer base comes from various socio-economic backgrounds, with most earning less than the national average income but spending only a portion of their clothing budget on secondhand clothing. This suggests that secondhand clothing complements purchases from other sources.

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