LUSA 08/13/2024

Lusa - Business News - Angola: Exchange rates, import duties complicate second-hand clothes market

Luanda, Aug. 12, 2024 (Lusa) - According to some operators, the business of selling used clothes in Angola, known as "fardo," has been declining due to various factors, such as the increase in import taxes and the lack of foreign currency.

For those who want to buy used clothes, at least in the province of Luanda, the country's capital, it is not difficult to find women on the streets sitting on pavements with their clothes on the floor or on the walls, and there are also those who choose to "zungar" [peddle] with their clothes hanging on hangers.

In the city of Luanda, customers buy clothes and shoes at more modest prices, trying them on as if they were in a boutique.

The offer is increasing on the outskirts, from clothing for adults and children, including underwear, to socks, shoes, ladies' bags, children's backpacks, belts, household items such as bed and bath linen, cushions, curtains, crockery, jewellery, paintings, toys, party dresses and bridesmaids' dresses, among many other products.

The sale of "fardos" is becoming increasingly sophisticated. In addition to the streets and squares, they are also being sold via social networks, with the possibility of home delivery, usually publicised by digital influencers.

This business, which has existed in Angola for several years, is mainly dominated by foreign citizens, who import the goods from countries in Europe, America and Asia, essentially used products, some still labelled because their previous owners have never used them.

But according to the operators, in the last two years, business "has been bad," as Abdul Magza, manager of one of the warehouses located in the municipality of Cazenga, on the outskirts of Luanda, in the former Indústria Fosforeira de Angola (IFA), considered the area where the highest quality products can be found, complained to Lusa.

The businessmen prefer not to give any figures on the profits and amounts made from this business in Angola, which is among the African countries that import the most used clothes.

Abdul Magza, a Lebanese citizen who has been in this business for five years, says that "everything has changed." He refers to the prices that have risen due to exchange rate variations and that he now finds it more difficult to resell the products.

"It's getting difficult for those who come to buy to resell; it's not working out," said Abdul Magza, recalling that previously, every week, they unloaded containers with 500 to 600 packages of used clothes for resale from Dubai.

But now it's up to four months "without any news", the main secret and most attractive aspect of this business.

This difficulty in acquiring the product was confirmed by Catarina Costa, 48, who has been selling "fardo" from Canada, Turkey, the USA and other countries for 20 years, except China because "it's not good quality", choosing the IFA warehouses as her source.

Catarina Costa said that supply has "decreased a lot" because many entrepreneurs have closed their warehouses and "left" due to economic difficulties.

"Most of the warehouses are closed because, they say, the business is no longer profitable," said this saleswoman located in Pelourinho Square, in the city centre, who bought the last package of trousers from the USA at 140,000 kwanzas (€147.7), expecting a profit of 5,000 kwanzas (€5.27) or 10,000 kwanzas (€10.50).

Maria Natália, 39, has been selling packages of clothes since she was 15 - a business that is a tradition in her family—and said that she still manages to support her five children.

This trader also favours the packages from Turkey, which she buys at the IFA, because "[customers] don't buy," things from China because they are small sizes that often don't fit Angolans.

Asked who else buys her products, Maria Natália said that customers vary. Still, she already has some loyal customers in the Ministry of Finance, Sonangol and various other employees in the downtown area of Luanda, to whom she even makes "kilapi" [on credit] to sell.

She explained that customers prefer these items because they are "rare clothes," i.e., they are not commonplace and are of high quality, with some international brands.

Amílcar Alberto, a warehouse manager in the IFA, said that they haven't received any goods for almost seven months and are only despatching what they have in stock because imports are difficult due to the increase in taxes and the currency crisis.

According to Amílcar Alberto, the import tax has increased by 30 percentage points from the previous 30% to almost 60%, while non-governmental organisations and religious institutions remain exempt from this tax obligation.

In addition to the IFA, China City also supplies this market at lower prices, with smaller packages weighing between 15 and 25 kilos, compared to those coming from the West, which weigh 45 to 60 kilos, explained Amílcar Alberto.

NME/ADB // ADB.

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