South Africa’s largest trade union federation, COSATU, said it would campaign for offshore online retailers Temu and Shein to be banned.
This was after its delegates endorsed a resolution to that effect at its 15th National Congress. Most delegates agreed a ban would support the local market and stimulate job creation.
Shein is a fashion-focused marketplace which has been available in South Africa since 2020. Temu officially launched locally in January 2024. Both operate from China.
Temu and Shein gained popularity by offering South African shoppers low prices, aided by an import duty loophole that has existed since 2007.
The disruption to the local textile industry prompted manufacturers and retailers to accuse the Chinese players of evading tax regulations.
Michael Lawrence, executive director of the National Clothing Retail Federation, said COSATU’s call for a ban was a one-dimensional response to a multidimensional problem.
“What we do think is necessary is that government commits to looking at it with a lot more nuance,” Lawrence told Cape Talk.
He said Temu, Shein, and other offshore online operators were using various pathways to access South African consumers.
“It’s easy for a union to call for a ban. We’ve got to be careful. We don’t want to be anti-competitive, and we do want to ensure we get to the root of the problem.”
The underlying problem, as identified by Lawrence and other industry stakeholders, was South Africa’s customs enforcement.
Lawrence said attempts by the South African Revenue Service (SARS) to close tax loopholes exploited by direct-from-China importers had been ineffective.
When Temu first launched in South Africa, it used an old concession enacted by SARS in 2007 which allowed importers to pay a flat 20% duty on parcels with goods worth R500 or less.
South African companies alleged that Shein used the same concession to avoid paying the 45% duty and 15% VAT that should apply to clothing imports.
South Africa too lenient with Temu and Shein
Michael Lawrence, Executive Director of The National Clothing Retail Federation
SARS responded to the outcry by promising to crack down on the concession and levy the full import duty and VAT on all clothing imports, regardless of value.
This was part of a larger reform of South Africa’s customs regime in November 2024 to align with World Customs Organisation guidelines.
However, this plan was delayed, and an interim measure was put in place where SARS would charge 15% VAT on top of the 20% flat duty.
A logistics industry veteran who previously spoke to Newsday on condition of anonymity predicted this outcome, saying customs simply did not have the capacity to process all the imports.
Lawrence and local e-commerce players have said that, years later, South Africa’s import tax regime was still not being effectively enforced on Temu and Shein.
Despite the industry’s concerns around Temu and Shein not being taxed fairly, Lawrence said an outright ban was not the solution. However, something had to be done.
“There have been job losses, and there will continue to be job losses both in manufacturing and in retail,” Lawrence said, pointing to a recent Localisation Support Fund study.
Earlier this year, Localisation Support Fund CEO Irshaad Kathrada said South Africa’s response to protect local manufacturers against Temu and Shein was lacking compared to other countries.
Kathrada said India had refused to allow Shein to operate domestically unless it entered into arrangements with local manufacturers.
“What they said to Shein is: you cannot enter our economy until you enter into arrangements with local manufacturers. We haven’t gone that far. We haven’t had that level of ambition,” he said.
Eugene de Kock, who was convicted of apartheid-era killings, on Monday blamed the National Prosecuting Authority (NPA) for neglecting to prosecute apartheid-era atrocities which he said were ordered by both politicians and police generals.
Among other issues, he blamed the NPA for not seeking information from him about killings and bombings he said were ordered by police generals and politicians, including former president PW Botha.
De Kock, dubbed “Prime Evil” because he commanded the police death squad unit at Vlakplaas responsible for the torture and extrajudicial killings during the height of apartheid, testified on Monday before the Khampepe commission of inquiry.
The commission is investigating allegations of political interference in efforts to investigate and prosecute crimes referred by the Truth and Reconciliation Commission (TRC).
De Kock’s evidence is crucial to the commission because he played a central role in some of the atrocities. He was convicted in 1996 of six murders, as well as conspiracy to murder, attempted murder, assault, kidnapping and other offences.
The crimes related to the activities of what was known as “apartheid death squads”, which operated out of Vlakplaas near Pretoria and were responsible for the killings of several political activists.
The unit worked with some uMkhonto weSizwe double agents who worked for the apartheid police. The agents were called “askaris”.
De Kock described himself as the middleman between high-ranking apartheid generals and officers who carried out killings and bombings, adding that his evidence would have been key to the NPA in seeking to prosecute, but “I was never asked”, even though he was “available all the time in prison”.
De Kock accuses Anton Ackermann, who was the head of the NPA unit investigating TRC cases, of negligence. He said that despite being called to meetings by Ackermann, he was never asked about TRC cases, those behind the extrajudicial killings or politicians who issued instructions.
“It would therefore have been obvious to the prosecuting authorities that I would have a great deal of information that would be of relevance to the prosecution of other individuals as well as the generals who were in command and the politicians who instructed them.
“However, very little attempt was made by advocate Anton Ackermann or attorney-general advocate Jan d’Oliveira to interview me regarding my knowledge of apartheid-era crimes,” De Kock said.
Among politicians involved in apartheid crimes, he listed former presidents Botha and FW de Klerk.
“The politicians were definitely PW Botha, Adriaan Vlok and Louis le Grange, and at a later stage I did receive information that De Klerk, President de Klerk, the one that … urinated himself out of fear, gave the order for the killing of five children in Mthatha,” De Kock said.
“I want to know why he was not prosecuted. He actually got a Nobel prize for killing children. I think it is disgusting. It [the Nobel peace prize] should be recalled,” De Kock said.
The NPA has opened an inquest into the October 1993 killing of five youths, including two 12-year-olds, who were shot dead in a South African Defence Force raid on an alleged Azanian People’s Liberation Army base at the Mpendulo residence in the Mthatha suburb of Northcrest.
De Kock said that after the bombings were carried out by his unit, he was applauded by top politicians. But when the whip was cracked on apartheid crimes, he was the only one to be prosecuted and to serve jail time, and not those who issued the instructions.
One of the police generals who was responsible for a killing pinned the crime on him, he said.
“I have never been reluctant to provide information to the prosecuting authorities; however, they have simply never approached me to provide this information.
“I disclosed openly and fully my involvement in the crimes for which I had been charged. This would have provided the prosecuting authorities with ample evidence with which to pursue further prosecutions.”
De Kock said Ackermann knew that he had information about the apartheid human rights violation crimes, although he did not disclose it. “I made it clear on many occasions that I wanted to testify; why was he [Ackermann] not prosecuting?”
Ackermann is due to return to the commission for cross-examination.
Ackermann previously testified before the commission on operational challenges which led to the failure to prosecute. He told the commission the Scorpions had declined to investigate TRC cases, leaving the NPA in a dilemma.
While allegations have been made that there were secret meetings between ANC officials and apartheid army and police generals to avoid prosecutions, De Kock said he was not aware of such meetings.
He, however, said the commission should look at those who stood to benefit from the failure of prosecutions: the apartheid generals and politicians who issued the instructions.
De Kock said he was willing to testify “even now” on apartheid killings and those who escaped prosecution.
“For the most part, my instructions came from very senior police officers: the generals. There was a chain of command, and I was a key link between the generals and those who carried out the operations.
“I was [and I am] able to provide evidence about [for example] the role played by Maj-Gen Izak ‘Krappies’ Engelbrecht, who was in the chain of command above me, and about a number of the other generals under whom I worked,” he said.
“The generals have not been prosecuted, despite judge Willem van der Merwe having found at the conclusion of my criminal trial that there was ‘more than enough evidence to charge Gen Engelbrecht’.”
He said his experience demonstrates that political office-bearers were both aware of and involved in what was happening.
“For example, to my personal knowledge, minister Louis le Grange signed off on the bombing of the ANC offices in London. He decorated the people who were involved in this, including me.”
“Minister Adriaan Vlok visited Vlakplaas on many occasions. On one occasion he came there to congratulate me on the bombing of Khotso House [the offices of the SA Council of Churches] and Cosatu House.”
“When I was instructed by Brig Willem Schoon to bomb Cosatu House, he told me that the instruction to do this was ‘from very high’. I asked him how high, and he said that it came directly from President PW Botha,” he said.
De Kock will return to the commission for cross-examination at a date yet to be confirmed.
The Congress of South African Trade Unions (COSATU) is the largest labour federation, but it continues to bleed members, declining from 2.2 million to roughly 1.6 million between 2012 and the subsequent reporting period. This is due to poor leadership, inconsistent political positions, an inability to adapt to the changing work environment, technological advancements, global shifts, and other factors. Most affiliated unions that left the federation did so largely because of COSATU’s unconditional bromance with the ANC.
Workers are also members of communities grappling with failing municipalities that are unable to provide basic services, including running water, functional traffic lights, properly maintained streets and adequate roads. Yet COSATU appears to be largely silent on these challenges, which affect ordinary people daily. Its perceived lack of engagement with these socioeconomic issues raises questions about its relevance and its commitment to the broader interests of the working class.
COSATU’s relationship with the African National Congress (ANC) has long been contested, with dissenting voices arguing that the alliance compromises the federation’s ability to represent workers independently. Critics contend that its political ties undermine its capacity to hold the governing party accountable when its policies or decisions adversely affect workers. COSATU, however, has consistently defended its position by pointing to its role in advancing workers’ rights in the post-1994 political dispensation. The central question remains whether its historical achievements are sufficient to sustain its relevance in a changing political and economic landscape.
Cosatu undoubtedly played a critical role in dismantling the apartheid system following its formation in 1985. As apartheid directly affected the working conditions and rights of its affiliated members, the federation was compelled to fight a system that oppressed the very workers it represented. This highlights the federation’s primary responsibility: to protect the interests of the working class before advancing any particular political cause.
International solidarity should not be selective or confined to a single international political conflict, as appears to be the case with Cosatu’s support for Palestine. All global political developments should receive the same level of attention and scrutiny as the Israel-Palestine conflict. Political consistency is essential to strengthening the federation’s credibility and ensuring that it is not used to advance particular international political agendas. Universal standards should be applied to all global conflicts, allowing Cosatu to defend the rights and interests of Palestinians while simultaneously holding Hamas accountable for its actions.
continues to lose relevance as a result of its historical prioritisation of political activism over mobilising workers and fighting exploitative labour practices. While COSATU’s support for Palestine is vocal, the federation appears to be falling short in addressing unemployment, abject poverty, widening inequalities, insecure employment and declining purchasing power. It is against this backdrop that the largest labour federation in South Africa should be evaluated and redirected towards prioritising the needs of workers and communities.
Despite the complexity of the Israel-Palestine conflict, Cosatu has made its position clear by calling for sanctions against Israel. However, such measures could have adverse consequences for ordinary workers and civilians in Israel who may have no direct responsibility for their government’s policies. The fundamental purpose of a workers’ organisation is to promote solidarity among workers across the world and protect their interests, irrespective of nationality. While Palestinian workers undoubtedly deserve protection against exploitation and injustice, the question remains: what about Israeli workers? Do they not deserve the same consideration and protection afforded to workers elsewhere in the world?
Cosatu’s approach also raises questions about the consistency of its international solidarity. Why has the federation not demonstrated the same level of commitment to sanctions against Russia or adopted an equally forceful approach towards those responsible for atrocities in Sudan and other parts of the world where people continue to suffer injustice? Such apparent inconsistencies risk undermining the federation’s credibility and raising questions about whether its international positions are guided by universal principles or selective political considerations.
Rather than allowing international political disputes to overshadow its core mandate, Cosatu should prioritise labour rights, workers’ livelihoods and economic justice. Its credibility as a workers’ federation depends on its ability to defend these interests consistently, regardless of the political actors involved. When its positions appear to align selectively with particular political agendas, the federation risks creating the perception that it has become captive to political interests that extend beyond its primary responsibility to the working class. International solidarity should unite workers in the pursuit of justice, not become a vehicle for advancing selective political causes.
Kgwadi is a Research Fellow at the Middle East Africa Research Institute (MEARI).
Online and clothing sales show resilience despite tough consumer environment
Grocer Pick n Pay is starting to reap the benefits of its turnaround strategy, reporting a narrower loss for the first half.
The group on Monday reported a headline loss of R299m for the six months to end-August from a loss of R439m a year ago, representing an almost 32% improvement.
The group reported a 56.2% year-on-year improvement in loss before tax and capital items to R139m. This was delivered at the operating level, with trading profit improving by R180m.
Group turnover increased 2.4% to R60.5bn, with 6.3% growth from Boxer and the Pick n Pay segment mostly flat. Pick n Pay turnover growth was impacted by a net year-on-year reduction of the store estate of 19 company-owned and franchise supermarkets.
The gross profit margin expanded 0.7% to 18.8%, with improvement in both the Pick n Pay and Boxer gross profit margins.
Group trading profit improved 58.1% to R490m due to a R75m increase in Boxer trading profit to R1bn and a R105m reduction in the Pick n Pay trading loss to R0.5bn.
The group’s headline loss per share narrowed to 40.71c from 59.77c a year ago.
The market warmed to the company’s results with its share price gaining more than 6% to R22.40 on Monday, taking its rise for the past two trading sessions to about 11%.
The group said the performance was achieved against the backdrop of a challenging external environment, given the impact of increased fuel prices from May on both its customers’ wallets and the group’s cost base.
It said while the Pick n Pay segment delivered a reduced loss, the R1.1bn loss at the trading profit after lease interest level “indicates that substantial further profitability improvement must still be delivered to return Pick n Pay to a sustainable basis”, it said.
The online business delivered another standout performance, with turnover growing 35.4%. Pick n Pay Clothing turnover in standalone stores grew 3.9%, with like-for-like sales down 0.7%. The South African clothing market remains “exceptionally challenged”, the group said.
“Our customer experience is being substantially improved, and this is supporting our like-for-like sales growth. The initial benefits of the turnaround elements that have already been put in place are beginning to show in the financial results, with gross profit margin steadily recovering and trading expense growth contained,” it added.
Further benefits are expected to flow over the coming two and a half years, as the group approaches its FY29 trading profit after lease interest breakeven target.
It has withdrawn the section 189A consultation process initiated in May. The agreement reached with its main labour partner, the South African Commercial, Catering and Allied Workers Union (Saccawu), delivers the flexibility, efficiency and market alignment sought by the group’s Pick n Pay segment at the start of the process, it said.
It introduces a simplified and more competitive store labour model that supports more flexible and effective labour scheduling, improved cost management and a stronger long-term position for Pick n Pay’s core supermarket business.
“The group acknowledges the constructive and respectful manner in which our labour partners and employee representatives engaged throughout the process. Together with Pick n Pay’s broader turnaround initiatives, this is a critical step in the journey to profit break-even and long-term sustainability,” it said.
It said for the four weeks since the end of the period, the Pick n Pay segment’s South African supermarket like-for-like sales growth was slightly ahead of that achieved in the first half.
For the rest of the year, the group has flagged ongoing high oil prices and the consequent impacts on food inflation, logistical costs and the ability of the consumer to spend.
It will continue to focus on operating levers within its control, it said.
