Editor, RE: “Is ‘Caguwa’ bad for our economy?” (The New Times, March 10).
Editor,
RE: "Is ‘Caguwa’ bad for our economy?” (The New Times, March 10).
This is a very interesting discussion. From where I am in Ethiopia the government does not appear to accept foreign secondhand clothes. However, instead the market is swamped entirely by cheaply made Chinese clothes of very poor quality.
I really miss those ‘secondhand markets’ in Rwanda here! But I agree with Junior Sabena’s point that we have to support local manufacturers. I think only the government can help in this, and not by banning secondhand clothes and leather, but by giving tax breaks to local producers for a number of years till their business is feasible enough.
Bringing in cheap goods from Indian Kenyans also won’t help. But Rwandans also need to learn such crafts, take initiative and work hard to set up their own manufacturing. Doing so, however, will also take some kind of protection against cheap Chinese goods.
Rwanda has a privileged place in many foreign markets to see its goods tax free so the government should use that chance to promote local producers abroad. In Europe and US people love handmade and quality products.
I could never find nice Rwandan made clothes to give as gifts abroad so had to buy those produced in Kenya.
The government needs to help with this by giving tax breaks; the tax system in Rwanda is simply too tight compared to our neighbours’. My two cents!
Gasana
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True, wages for factory workers in Asia have been improving in the past few years. What hasn’t changed though is the fact that it still is cheaper to manufacture items there than in the US or other western countries.
This is mainly due to the business model of the factory owners. They still need the business so a few compromises have to be made e.g., sharing/investing in the cost of molds or other constant production tools as long as the production stays in that factory long term (read forever).
H&M and other manufacturers bringing business to North Africa and Ethiopia is nothing to look up to.
They are basically taking advantage of countries with no proper labour systems in place and profiting from the sweat of the people while leaving behind bread crumbs. How many Ethiopians do actually wear (or can afford) new H&M clothes btw?
Factory workers in Asian countries simply couldn’t make a living out of what they were earning thus demanding reforms but how long did that take?
By the time naive countries realise that they are not the ones profiting from these partnerships, the damage will have been done.
I don’t understand why we as Africans don’t realise that we have what these other countries are trying to get back to: clean air, forests, fertile lands and raw materials just to name a few. How someone else got to Rome is not the only way. We need to find other ways to use what we have to work for us.
Caz