The South African Young Diamond Beneficiators' Guild was launched at the first South African Diamond Indaba in Johannesburg yesterday to boost the processing and manufacturing of rough diamonds.
Delivering the keynote address at the Indaba, mineral resources minister, Mosebenzi Zwane, said that manufacturers and middlemen – who buy rough stones, polish and resell them to retailers – struggle with a stronger dollar and liquidity problems, having to rely on bank loans to cover purchases until they can sell their finished goods.
The South African Young Diamond Beneficiators' Guild was established to help start-ups, led by mainly black entrepreneurs, to cut and polish diamonds.
This is in line with government’s push to stimulate manufacturing and revitalise industrial capacity by encouraging companies to process or add value to minerals - a process referred to as "beneficiation" - before exporting them.
A CNBC Africa report says processing diamonds could help ease unemployment which stands at around 25 percent, although some analysts say this is higher.
