Business Report

SA Trade Alarm: EFF questions McKenzie’s high-stakes SHEIN meeting abroad

Thabo Makwakwa|Published

EFF Challenges Minister McKenzie's SHEIN engagement over Trade Authority concerns

Image: Facebook

The EFF has written to Mzwandile Masina, chair of Parliament’s Trade and Industry Committee, raising concern over Minister Gayton McKenzie’s meeting with fashion giant SHEIN during South Africa Focus Week in Singapore.

The EFF questioned the meeting's appropriateness, stressing that it appeared to encroach on the jurisdiction of the DTIC and the Department of Small Business Development. 

According to the party, the discussions touched on market access, manufacturing partnerships, and investment frameworks - areas traditionally overseen by the DTIC.

“While collaboration with international partners in creative and sports industries can bring opportunities, this engagement raises serious issues regarding ministerial authority and alignment with South Africa’s trade and industrial priorities,” the EFF said. 

The party highlighted that such discussions must be conducted within a properly coordinated process led by the DTIC. 

The EFF also flagged concerns about whether any formal commitments or agreements were made during the meeting. 

Given SHEIN’s significant global footprint and its known impact on local textile and apparel sectors, the party argued that transparency and stringent scrutiny were essential to protecting South Africa’s domestic manufacturing base and labor rights.

South Africa’s local clothing, textile, and manufacturing industries continue to face a crisis marked by factory closures, mass layoffs, and unfair import dumping. 

The EFF pointed out that small and medium enterprises, especially those led by young designers, are struggling to access markets and critical support. 

The party warned that partnerships with large foreign companies like SHEIN could further marginalise these local players if not carefully managed.

The EFF further cautioned that the meeting risks conflicting with initiatives such as the Foschini Group’s “Foschini Plan,” which aims to bolster domestic production and retail capacity through increased South African manufacturing. 

“Any parallel engagement that gives preference to foreign corporations over local industry players contradicts the objectives of building a self-sustaining, inclusive economy,” the party added. 

Additionally, the EFF highlighted the importance of aligning such engagements with the Department of Small Business Development under Minister Stella Ndabeni-Abrahams.

“It is critical that any engagement of this nature be properly aligned with the national agenda for small business empowerment and not allow large corporations to dominate or displace local entrepreneurs.”

The EFF has called for a joint portfolio committee meeting involving the DTIC, the Department of Small Business Development, the Department of Sports, Arts and Culture, and the relevant portfolio committees to provide greater transparency and clarity.

Earlier on Monday, the Department of Sports, Arts and Culture issued a statement confirming that McKenzie met with SHEIN representatives on October 6, during South Africa Focus Week in Singapore. 

It said the meeting focused on potential collaborations between SHEIN and South Africa’s creative, fashion, and sports sectors, particularly supporting inclusive sporting initiatives and empowering young local designers and athletes.

McKenzie reportedly “welcomed SHEIN’s growing commitment to global social impact through sport and creative partnerships,” stressing the importance of developing inclusive platforms for persons with disabilities and creating opportunities for South African talent to engage internationally.

The department said the engagement was part of a series of high-level meetings during the third edition of South Africa Focus Week, held from October 6 to 11, which aims to showcase South African business, culture, tourism, and innovation on the global stage.

thabo.makwakwa@inl.co.za

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