34 000 Local Jobs Could Be Lost If Offshore E-commerce Platform Likes Temu & Shein Continue To Grow

Loading player...
Guest – Irshaad Kathrada, CEO of the Localisation Support Fund (LSF)

Offshore e-commerce retailers, such as Shein and Temu, are rapidly gaining ground in South Africa’s retail clothing, textile, footwear and leather sector, displacing thousands of local jobs, including in e-commerce.

This is creating an urgent need for digital transformation, including the adoption of artificial intelligence (AI).

The Localisation Support Fund (LSF), in a recently released report, found that Shein and Temu’s presence in the local market has already resulted in millions of rands lost in local manufacturing sales, and more than 8 000 direct and indirect jobs lost between 2020 and 2024.

In a worst-case scenario of Shein and Temu growing their sales locally by 20.8% annually through to 2030, their combined sales could reach R22.6 billion and their e-commerce share of the retail market could climb to 63%. Combined with their impact on the physical market, this would put more than 34 000 South African retail and manufacturing jobs at risk, says the report.
7 Aug 2025 12PM English South Africa Business News · Investing

Other recent episodes

PPS Delivers R6.88bn in Profit‑Share

PPS Group CEO Izak Smit unpacks a second consecutive record year, with R6.88bn allocated to members and R6.67bn paid in claims. He explains the strength of the mutual model.
22 Apr 4PM 16 min

Capitec’s R16.8bn Year

Capitec CEO Graham Lee discusses the bank’s 23% earnings surge, its diversified business model, and the rapid rise of digital payments.
22 Apr 4PM 14 min

Inflation Through the Eyes of the Consumer

Eighty20 Director Andrew Fulton translates the CPI numbers into real‑world household pressure. From meat‑led food inflation to the looming oil shock, he explores which consumers are most exposed and how spending behaviour is shifting.
22 Apr 4PM 9 min

SA’s Draft AI Policy: The Cost of Getting It Wrong

Free SA spokesperson Gideon Joubert discusses the organization's concerns about South Africa’s Draft National AI Policy—including expanded bureaucracy, duplicated institutions, and barriers for startups.
21 Apr 4PM 5 min