The Fund for Research into Industrial Growth and Equity (Fridge) has allocated R1,5- million to implement the Kaiser report in the South African jewellery industry.

The report, completed late last year, focuses on methods to enhance the country's jewellery sector as a downstream process from precious-metal and gemstone mining.

Jewellery Council of South Africa (JCSA) executive director Claire Minnitt says implementing the report rests with author Kaiser Associates – a process which should be completed by June.

Managing the sweeping changes to the industry will then lie with a dedicated jewellery sector project manager who will be appointed for a two-year term.

It is hoped that implementing the Kaiser report, which was compiled at a cost of R1,5-million, will finally place the jewellery industry on the road to growth.

It was first decided at the Gold Summit in 1999 that the appointment of a 'jewellery champion' would be the solution to developing the sector. Kenneth Small was appointed in this role early last year, his position funded by a government support programme, the Sector Partnership Fund (SPF), which also received contributions from the Chamber of Mines and the JCSA.

In the following months it became clear that Small's appointment was not working out. He has now returned to working under the Department of Trade and Industry (DTI) banner, as prior to being appointed transformation champion, lobbying for foreign direct investment and the creation of jewellery hives. At the same time as the Jewellery Indaba in 2000, JCSA made an application to the Fridge fund for an international market research study to be conducted on behalf of the jewellery industry. Kaiser and Associates was appointed to conduct the research, starting from October 2000, and completing its report in June last year. The report provided information on international markets best suited for South African exports, as well as outlining a number of local issues that required attention. Now, with the proposed new structure as suggested in the report about to be implemented, it seems things are finally coming together for the embattled jewellery sector.

"I think the industry has lost a bit of hope; there has been too much talk for too long," comments Minnitt.

What slowed down the process was the cumbersome structure of working in committees and consulting all the appropriate parties.

Minnitt also points out that DTI's structures are of such a nature that they do not assist the local industry.

"The desire to assist is there, but the systems in place do not work," she explains.

Also, financial and human resources, were, and are still, lacking.

Despite these complications, Minnitt remains hopeful that the implementation of the Kaiser report will change the face of the country's jewellery industry.

In the next few months, Kaiser Associates will roll out ten projects to implement the recommendations of its report.

The first of these will be to facilitate the redesign of existing industry structures and the creation of a Support Services Group (SSG).

This SSG will be headed by the appointed project manager, who will be involved in setting up an export council and an information office, as well as effecting what needs to be achieved in terms of training for the industry.

The second project, closely linked to the first, is the creation of a dedicated training structure.

Many jewellers have complained that students emerging from training institutions do not possess the necessary skills.

The project manager will have to lead the industry in finalising a curriculum and unit standards to ensure manufacturers are satisfied with graduates from any jewellery school.

Another project is facilitating the formation and development of member organisations to conduct joint export marketing activities.

In addition, the industry will work closely with DTI to create a tailored industry development programme, while also ensuring greater access to incentive schemes.

The fifth project is a strategic analysis of polished-diamond market opportunities in South Africa, mainly because smaller entrepreneurs experience difficulties in selling their cut and polished diamonds profitably.

Linked to this, Kaiser Associates will prepare an analysis of VAT and dollar account opportunities for the diamond sector.

Minnitt explains, for example, that South African jewellers have to pay VAT on diamonds and gold, while the country's competitors enjoy a zero VAT-rating.

A seventh project is to create a cohesive South African brand of jewellery.

The Born in Africa brand will be used for gold products, with a strong domestic and international focus aimed at retailers.

African Sun Cut will be the brand reserved for diamonds, more specifically round-cut brilliant diamonds.

Diamond giant De Beers is providing marketing advice on this issue, along with the Jewellery Council. Together with Kaiser Associates, the council is currently investigating the possibility of having these jewellery branding initiatives included under the 'Proudly South African' banner, a nationwide project to promote locally-made goods.

Another project which will have to take shape in the next few months is to foster links between creative jewellers and large-scale producers.

The first step in achieving this will be to compile a directory of the entire sector, which will need to be updated and expanded continuously.

Following this, a design forum will have to take place between the two parties, at which cooperation can be discussed.

The ninth project is aimed at empowering the industry to use trade shows as a platform for market entry.

Minnitt says developing a trade pavilion for South African jewellery will take time, with next year set as the target for participation in several exhibitions abroad.

Only then will the industry be able to put forward a professional and united front.

Government assistance is needed on this issue, she emphasises, especially from DTI.

The last project of the ten Kaiser initiatives is for the industry to adopt a voluntary quality-assurance system.

Rather than being mandatory and all-encompassing, the system could be self-declaring and based on the random sampling principle.

In order to administer the system, a mechanism for conducting random sampling would need to be devised, such as a central hallmark office, and/or roaming inspectors.

It is possible that Rand Refinery may assist in managing the system.

Kaiser Associates will conduct research on how the Birmingham assay office in the UK operates, investigating issues such as volume assayed per day, machinery used, number of personnel and estimated costs. The next few months will tell whether the local jewellery industry can open the doors to the international market.

Hopefully it will provide some unity in, as well as critical mass to, a fragmented industry where several projects and individuals are striving to achieve success, locally and abroad.

South Africa supplies about a quarter of the world jewellery sector's raw materials every year, yet its own industry remains a minnow.

"We are literally sitting on a gold-mine," says Minnitt.

Now to make use of the gold.