No one is willing to talk about the meeting between Shein and McKenzie, attended by Mbalula.
Minister of Trade, Industry and Competition Parks Tau said his department will monitor and investigate if Chinese online store Temu is complying with South African laws by operating a warehouse in the country.
This comes as many remain silent about the controversial meeting between Minister of Sports, Arts and Culture, Gayton McKenzie, and another Chinese online store, Shein. The meeting was also attended by the Free State MEC Jabu Mbalula.
Jabu is a brother to ANC national secretary-general Fikile Mbalula.
A report by the Localisation Support Fund (LSF) highlighted that Shein and Temu have collectively achieved approximately R7.3 billion in sales, resulting in an estimated R960 million in lost local manufacturing sales, 2 818 manufacturing jobs that may have materialised, and 5 282 unmaterialised retail jobs from 2020 to 2024.
Look into Temu
Tau was asked by EFF’s Sinawo Thambo whether he is aware that Temu has been promoting the existence of local warehouses in the country.
“The department has noted media reports that Temu has launched its ‘local warehouse’ and the National Consumer Commission (NCC) shall be monitoring these developments and their impact on the domestic retail sector,” said Tau in a parliamentary reply.
“The operations of Temu in the country have to comply with all relevant legislation, including the Consumer Protection Act, Act 68 of 2008 (CPA).” This Act protects consumers by ensuring fair treatment, honest business practices, and the right to safe, good-quality products and services.
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No formal complaints against Temu
Tau’s reply detailed that there haven’t been formal complaints against Temu; however, they have noted concerns around its products and operations.
“While no formal complaints have been initiated or received against Temu, the NCC has noted concerns raised in other jurisdictions around issues of deceptive practices, quality and safety of products,” he said.
“These are some of the practices that the scoping of the e-commerce market seeks to understand, and to particularly assess if South Africans are affected. The NCC, after gathering data, will determine if there is a reasonable suspicion to proactively initiate an investigation.”
McKenzie teams up with Shein
McKenzie has previously been criticised for meeting with Shein bosses over collaboration between the department and the Chinese platform. The Citizen has, without success, attempted to obtain details of the meeting.
McKenzie’s office told The Citizen the minister will not be taking interviews on the matter. “We can’t stop Shein from doing business in SA,” he said on social media platform X.
“We can agitate and negotiate for greater participation of the local fashion industry. We met them precisely for that reason. You guys think staying angry at companies is a solution? There is value in collaboration.”
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Questions around the meeting
Ideally, if government is to meet with Shein, Tau would chair the meeting, as the operations of the Chinese platform fall under his department.
The Citizen sent an enquiry to Tau’s spokesperson to determine if he was made aware beforehand about the meeting with Shein, and if he had more details about the outcome of the meeting. No reply has been received.
However, Thambo said the EFF has written to the chairperson of the portfolio committee on trade, industry and competition, requesting clarity about the meeting, as the collaboration can be viewed as a “trade deal on behalf of South Africa”.
Free State MEC in attendance
According to the pictures posted by McKenzie on social media platform X, the meeting in Singapore was also attended by Free State MEC of Community Safety, Roads and Transport, Jabu Mbalula.
The Citizen, without success, reached out to Community Safety’s spokesperson and the MEC to obtain a comment on Mbalula’s involvement in the meeting and to clarify in what capacity he was attending, given that he is also the Free State ANC spokesperson.
“The EFF is concerned that this meeting appears to have ventured into areas that fall under the jurisdiction of the DTIC, rather than the Department of Sports, Arts and Culture,” said Thambo.
“Any discussions on market access, manufacturing partnerships, or investment frameworks must occur within a properly coordinated process led by the DTIC.”
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