Munyeshyaka was speaking to IGIHE on Friday while responding to the claims raised last week by the Acting Director of the Office of Economic and Regional Affairs in the Bureau of African Affairs in the Department of State, Harry Sullivan who said that East African Community (EAC) decision to ban importation and use of second-hand clothes commonly known as ‘Caguwa’ will affect thousands who will lose jobs.
Harry was speaking in a telephonic press briefing with different African media houses about the African Growth and Opportunity Act (AGOA).
Asked whether US President Donald Trump’s administration slogan ‘America First’ and the ban of second-hand clothes in the EAC which America opposed, would not be a matter of conflict of interests, Harry explained that the problem with the programme is that it would affect many people to lose jobs.
He said that they understand that the EAC desire to build a domestic textile sector, but emphasized that the EAC’s ban on imports of used clothing will not help achieve that.
“First, it’s job-destroying. The proposed ban will hurt an estimated 300 thousand men and women that work in the used clothing business all across the East African Community and it will also negatively impact at least 40 thousand U.S. jobs in the used clothing sector in the United States,” he said.
{{Rwanda denounces claims}}
Munyeshyaka said that banning second-hand clothes is in line with the country’s programme to develop industry sector.
He said that the industry sector comes to the third place in contributing to the development of Rwanda’s economy with 16% after services covering 47% and agriculture 30%.
“Under the move to develop the economy of the country, we need to develop our industry sector. As you know no country has developed without investing in the development of industries,” he said.
Munyeshyaka said that industries making leather products and textile industries are creating many jobs.
By using C&H Garments Rwanda as an example, Munyeshyaka said that the industry has employed over 1500 employees and under the new phase expected to start soon, they will employ over 4,000 people.
“When you look at medium industries and cooperatives of tailors from across the country, there are many jobs, so these statistics of losing 300,000 jobs in EAC are false. I don’t know about their country’s loss of employment may be they have counted well, but for us we have taken a good position,” he said.
{{AGOA cannot develop our industries.}}
Munyeshyaka said that since they entered in AGOA, Rwanda only exported handicrafts products which did not exceed USD one million for the country per year.
“Actually our business with USA under AGOA is 0.05%. It is a small business which we cannot rely on and develop our industries,” he said.
As a way to promote locally made products, particularly textile and shoes industries, Rwanda has hiked taxes on imported second-hand clothes and shoes in order to weaken them on local market, but promote locally made products.
Munyeshyaka said that currently made in Rwanda programme is creating between 20,000 and 21,000 of jobs per year.
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