Employment and Enterprise Policy Analysis Discussion Papers: A Review of Rwanda's Textile Clothing Subsector

摘要

The structure and evolution of Rwanda's garment industry are examined, with special emphasis on the country's unusually high concentration of used clothing imports. Consumers allocate slightly over 25% of all clothing expenditure for used garments, which are imported in large bales from the United States and Europe, refurnished where necessary, and distributed for sale in public market places or re-exported to neighboring countries. It is estimated that more than half of Rwanda's used clothing is re-exported, almost always fraudulently, to Zaire, Uganda, Burundi, and Tanzania. According to the study, used clothing generates maximum income per unit of sales, supplies consumers at the lowest cost, benefits the poorest consumers most directly, and generates nearly as much employment as small-scale tailoring. It includes policy recommendations to improve performance of the garment industry and used clothing distributors.