Johannesburg - De Beers, the world’s leading diamond producer, was hoping to bring back the shine to South Africa’s beneficiation industry after selecting five black-owned diamond companies for its entrepreneurship development.
Speaking at the launch of the project in Johannesburg yesterday, Mpumi Zikalala, the senior vice-president of De Beers Sightholder Sales South Africa, said De Beers would give support and guidance to the entrepreneurs.
“De Beers will provide bespoke rough diamond supply to the candidates, while they are part of the development programme and, on completion, they can apply to become accredited buyers of De Beers before they are ultimately in a position to apply for sightholder status competing with other leading diamond companies around the world,” Zikalala said.
She added that the success of the project would also be ensured by the development of partnerships with key stakeholders, including national and provincial governments, as well as funding agencies such as Anglo American Zimele and De Beers clients.
The entrepreneurs are to receive support from leading incubator specialist Raizcorp.
South Africa is the fifth largest diamond producer and has a beneficiation industry that employs no more than about 400 workers.
Bruce Cleaver, De Beers’ newly appointed chief executive, said South African cutting and polishing had declined to 400 from a peak of 5 000 as cheaper countries dominated the finished diamond market.
“For the local beneficiation sector to have remained competitive over the years there should have been a point when we considered innovative ways to implement a step change in our beneficiation sector,” Cleaver said. “This step change would have enabled our country to remain one of the leading diamond destinations.
“I believe that we are reaching yet another point in time when change is inevitable, due to the advent of disruptive technology that will have a fundamental impact on the global economy, bringing with it new types of businesses and skills to take the world forward.”
Struggling
The South African diamond industry is struggling to find an economic model that can justify diamond cutting and polishing at home, with calls from industry players for a business environment that encourages local manufacturers to buy and polish stones.
Speaking on the sidelines of the event, Futhi Zikalala, the chief executive of the State Diamond Trader, said the programme would help change the fortunes of the industry.
“The programme means that we are going to grow this industry,” Zikalala said.
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