Addressing regulatory challenges in SA’s jewellery industry

Diamond

Addressing regulatory challenges in SA’s jewellery industry

South Africa’s jewellery sector faces mounting regulatory hurdles that stifle growth and innovation. Meaningful reform is essential to unlock the industry’s full economic potential

South Africa’s jewellery industry, historically a shining example of value-added beneficiation, holds immense promise for economic growth and entrepreneurship. However, industry stakeholders are increasingly calling for thoughtful reform to ensure that the sector can thrive in a modern, competitive global market.

While SA remains one of the world’s top producers of gold, platinum and diamonds, regulatory complexity is making it difficult for new entrants to access the industry and for established businesses to grow. Industry insiders warn that the maze of compliance requirements and overlapping government regulations is making it increasingly difficult for newcomers to break into the sector and for established players to remain compliant.

From licensing requirements to strict regulations on precious metal beneficiation and trading, new businesses must navigate a gauntlet of paperwork and oversight before even crafting their first piece of jewellery. The process typically involves:

• Registration with the SA Diamond and Precious Metals Regulator.

• Compliance with the Precious Metals Act and Diamond Act.

• Obtaining jeweller’s permits, refining and beneficiation licences.

• Strict auditing and record-keeping requirements.

For emerging entrepreneurs, especially those without strong legal or financial support, these barriers are often insurmountable. Many give up before launching, citing high costs and months-long waiting periods for approvals.

Even for experienced operators, compliance is a continuous challenge. “Staying up to date with shifting regulatory expectations is practically a full-time job,” notes one Gauteng-based manufacturer. “We spend more time on paperwork than on innovation.”

According to data from the Department of Mineral Resources & Energy, the number of jewellery manufacturing permits and licences issued annually has declined steadily over the past decade, despite SA’s abundant mineral resources, which should position it as a global leader in jewellery production.

Industry players argue that over-regulation is to blame. The cumbersome compliance system discourages investment, blocks innovation and limits the ability of businesses to adapt quickly to market demands. “We have the raw materials and design talent,” says Soweto-based jewellery entrepreneur Dumisani Hlatshwayo, “but trying to start a jewellery business feels like preparing for war. There’s too much red tape and zero clarity.” Hlatshwayo is one of many emerging designers who abandoned or delayed launching due to the burden of compliance.

“We’re not anti-regulation,” says Simone du Preez, owner of a mid-sized jewellery manufacturer in Durban, “but the system needs to evolve. Right now, it’s pushing talent out instead of welcoming it in.”

The Jewellery Council of SA (JCSA) has emerged as one of the most vocal advocates for change. The organisation is actively engaging with government and industry bodies to push for deregulation and streamlined compliance processes – not to compromise accountability, but to make the system functional and growth-orientated.

“The current regulatory framework is outdated and overly complex,” says JCSA CEO Lorna Lloyd. “If we want to revive and grow the industry, particularly among small to medium enterprises and emerging designers, we must simplify the path to participation. By simplifying compliance, we can support job creation, skills development and the expansion of local design and manufacturing.”

Although progress has been measured, ongoing discussions offer a promising platform for reform. Countries like India and Italy have demonstrated how streamlined regulation can stimulate industry growth, models that could inspire local solutions tailored to SA’s context.

The JCSA is advocating:

• A centralised online portal for licensing.

• Risk-adjusted compliance tiers based on business size.

• Enforceable turnaround times for all permits and renewals.

• Updated regulatory guidelines with clear support resources for new entrants.

• Controlled duty-free access to gold and precious metals for local manufacturers.

• VAT exemptions and customs duty rebates for export-orientated manufacturers.

• Government-backed promotion of “Made in South Africa” globally.

• Establishing industry councils akin to India’s Gem and Jewellery Export Promotion Council, ensuring a unified voice in policy-shaping.

To ensure the survival and growth of the sector, industry leaders say reforms must be pragmatic and swift. The South African government has long championed beneficiation as a way of adding local value to mineral exports. However, without policy reform, that vision may remain unrealised.

If the barriers to entry and operation are not lowered soon, the sparkle of SA’s jewellery sector may continue to dim, taking with it jobs, skills and potential the country can ill afford to lose.

We want to hear from you

If you are a jewellery industry stakeholder who has been negatively affected by excessive or outdated regulation, we invite you to share your experience. The JCSA is compiling a comprehensive feature that will be shared with national media and broader audiences outside the trade. Our goal is to highlight the real-world impact of regulatory barriers and advocate meaningfully for reform.