ActionSA has become the second opposition party to unleash a blistering attack on the government following revelations that Minister of Sport, Arts and Culture Gayton McKenzie met with representatives of Chinese fast-fashion giant SHEIN.
This despite mounting evidence that the company was dealing a blow to South Africa’s clothing and textile industry through customs manipulation and cheap imports.
ActionSA member of parliament Alan Beesley has formally called for an urgent joint parliamentary hearing to probe what he calls “the systematic betrayal of South African workers and manufacturers”. He pointed directly to SHEIN and Temu’s exploitation of the de minimis (something so small that it’s not worth regulating) customs loophole between 2020 and 2024.
Insult to local businesses
Beesley said the October 7 meeting between McKenzie and SHEIN officials was a slap in the face to local businesses. He said it is a sign that parts of the government are wilfully ignoring economic sabotage under the guise of “youth empowerment”.
“It is unconscionable that while our factories close and thousands lose their livelihoods, a Cabinet Minister is holding tea with the very culprits responsible for that devastation. The government must decide whether it stands with South African workers or with foreign corporations making billions off our economy.”
Beesley’s request, addressed to Mzwandile Masina (Chairperson of the Trade and Industry Committee) and Mkhacani Maswanganyi (Chairperson of the Standing Committee on Finance), follows a damning report by the Localisation Support Fund NPC.
The report revealed that SHEIN and Temu used the de minimis rule, which exempts goods under R500 from VAT and import duties, to flood the market with untaxed products. This led to an estimated R960-million in lost manufacturing sales. It also resulted in over 8,100 potential job losses in South Africa’s clothing, textile, footwear, and leather (CTFL) sector.
Other ministers urged to explain
Beesley has called for Finance Minister Enoch Godongwana, Trade and Industry Minister Parks Tau, and Sars Commissioner Edward Kieswetter to be summoned to Parliament to explain the following:
- Why the loophole was left open for four years;
- Whether the state assessed its impact;
- What measures are being implemented to close it; and
- What redress will be offered to affected manufacturers.
The party said McKenzie’s engagement with SHEIN shows a dangerous lack of coordination within government. It also highlights how foreign corporations are being normalised instead of investigated.
“We cannot have one minister investigating SHEIN’s practices while another is posing for photo ops with them,” Beesley said.
“This chaos reflects a government without a moral compass or a coherent economic plan.”
Last month, Economic Freedom Fighters national spokesperson Sinawo Thambo accused McKenzie of overstepping his mandate and undermining local industries by meeting with SHEIN.
McKenzie’s department described the engagement as a strategic discussion aimed at exploring collaborations to empower young South African designers and athletes.
