Used clothing imports known locally as "bonda" have come to dominate over half of Ethiopia's clothing market in recent decades. Bonda provides affordable garment options that are appealing to consumers across income levels. Since the 1980s, bulk shipments of sorted Western overstock and returns have been arriving from abroad and sold locally. This has posed challenges for Ethiopia's emerging garment manufacturing industry. Local producers struggle to compete on price with the pre-owned bonda stock, due to high import costs, taxes, and the expensive local raw materials that make matching bonda's low prices difficult. Manufacturers also receive inadequate assistance from the government. The saturated bonda market has led to declines in domestic production and strategic problems for factories with excess inventory and increasing overheads, as BirrMetrics’ Mihret Alem reports.
On any given day, the Chereta open-air market in Addis Ababa buzzes with activity as hundreds of vendors spread out piles of used clothing, sorted by color and type, hoping to make a sale. Known locally as “bonded” or “bonda,” these second-hand garments imported from overseas have come to dominate Ethiopia’s clothing market in recent decades, greatly impacting local fashion, retail businesses and the country’s fragile textile sector.
Hundreds of small retailers crowd the winding maze-like alleys of Chereta, selling everything from basic t-shirts and jeans to designer labels. For many shoppers, it has become the go-to destination to kit out the whole family on a budget. “Bonded clothes are affordable and you can find styles for everyone,” says Meseret Tsige, who visits Chereta weekly to supplement her family’s wardrobe. “The quality is also good - sometimes even brand new items that people abroad no longer want.”
Ethiopia has a long history of recycling used clothes due to economic necessity. In the past, garment exports mainly came through charity donations or were locally produced. But the business exploded in the 1980s-90s when Western overstock and returns began arriving in bulk from Europe and North America, sorted by commercial exporters for sale.
Today, bonda occupies a unique space at the intersection of cultural norms, consumer preferences and economic realities in Ethiopia. For consumers across classes, its cost-effective assortments provide a chance to follow changing Western fashions perceived as higher quality than available locally.
Bonda items worn to nightclubs and university campuses signal dynamism, youthfulness and connection to global trends. Popular videos shared on TikTok show teenagers laughing over bonda “hauls”
Their proliferation in recent year poses even an existential threat to Ethiopia's fledgling garment industry, which struggles to compete against the low prices and perceived quality of pre-owned stock. "The clothing market belongs to imports like bonda," notes Goshu Negash, president of the Ethiopian Textile and Clothing Manufacturers Association. "This growth stifles local producers."
For retailers like Robel Alemu, a bonda trader for over 15 years, the used clothing business requires minimal startup capital. "You need as little as 10,000 birr to rent space and purchase initial inventory," he says. This low barrier to entry has fueled an entrepreneurial gold rush, where hundreds of small shops in Merkato source unsorted shipments hoping to discover treasures.
Retailers are drawn to bonda for its variety of styles for all ages, according to Robel. But selecting unorganized pieces brings disadvantages like damaged clothing. Elsa, a four-year bonda veteran, invested 20,000 birr and deals with heavy transportation costs to her Chereta market stall. Still, she thrives on high demand for affordable, mixed bundles.
Abel Tsegaw, an importer of new women's wear, views this boom warily. "People ignore declining quality from use," he warns. For eight years, Abel diversified online as local tastes changed and prices pressured his domestic market. Meanwhile, Helen, a clothing designer, laments non-local fabrics stifle understanding needs.
Manufacturers shoulder sizeable taxes importing raw materials, boosting costs. "Prices cannot match bonda," explains Almakir Garment director Adonai Jared, employing 350 workers. A garment factory owner notes production declined due to "abundant bonda operating openly without oversight."
Manufacturers face numerous handicaps against bonda's low-cost formula. Adding to high import tariffs drive up raw material costs which local suppliers fail matching, factories also shoulder substantial taxes and overheads creating living wages. Piecemeal government assistance inadequately levels the playing field.
Goshu insists local quality matches used imports, but acknowledges consumers' price biases. Bonda faces less trade barriers through illegal smuggling, he notes, hurting morale as local industry foots higher tax bills. This threatens jobs and development if the situation continues uncontrolled. Solutions proposed include enforcing the ban on imported used clothing and empowering enforcement bodies.
For local factories, bonda saturation creates serious strategic difficulties. At Almakir Garment Company in Akaki Kaliti Industrial Zone, director Adonai acknowledges stagnating conditions.
"The market situation is stagnant - pre-owned clothing now claims lion’s share of the market, yet our clothing sits unsold in warehouses," he notes. As the largest employer in the park with 350 workers, pressures pose grave consequences if unaddressed.
Rising input costs compound challenges. "Raw materials are very expensive whether sourced domestically or internationally," explains Jared. "With high worker salaries too, our prices can't match pre-owned options people gravitate to for affordability."
Innovations alone prove insufficient against these structural handicaps. "We develop different designs but demand consistently returns to pre-owned selections," Jared laments. The playing field remains uneven due to bonda's duty exemptions while factories shoulder significant tax burdens.
Similar experiences plague smaller manufacturers. One boutique owner unable competing on price ultimately closed. "This damages the country through job losses and decreased production," they emphasize.
Goshu of the Manufacturers Association underscores the severity of risks if left unaddressed. "Over 55 percent market share means pre-owned clothing essentially competes using our second-hand exports," he warns. This outsized dominance threatens viability for local producers as global competitors.
The potential implications endanger Ethiopia's manufacturing ambitions. "This will stunt our growth and squeeze employment opportunities," cautions Goshu. Losing the garment sector also slashes government revenues, weakening capacities across other priority areas.
Recognizing common ground, manufacturers actively participate in multi-sector policy dialogues promoted by the Manufacturers Association. Their proposals focus on research-backed reforms stabilizing unequal conditions.
"We never advocated protectionism which fails industries long-term - our goal remains winning global competitiveness," emphasizes Goshu. Temporary measures could stabilize entry phases against duty-free imports flooding local markets.
While bonda nourishes livelihoods through affordable choices, its rapid ascent presents complex challenges. For consumers seeking variety, retailers trying to earn profits, and manufacturers struggling to survive and create jobs, balancing interests will take cooperation. But as the second-hand giant looms over local capacity, time may be running out without collaborative solutions embracing bonda's role alongside opportunities for Ethiopian creativity, skills and self-reliance to also thrive on its own fashion stage.
