Africa s Premier Jewellery and Watch Exhibition

2017 A N N U A L R E P O R T

6-8 OCTOBER 2018 SANDTON CONVENTION CENTRE, 161 MAUDE STREET, SANDTON, JOHANNESBURG, SOUTH AFRICA Africa s Premier Jewellery and Watch Exhibition +27 11 484 5528 lornal@jewellery.org.za www.jewellex.co.za www.facebook.com/myjewellex

JCSA ANNUAL REPORT 03 04 MESSAGE FROM THE CHAIRMAN 05 MESSAGE FROM THE CEO 06 JCSA STRUCTURES 08 HUMAN RESOURCES AT JCSA 08 MEMBERSHIP REPORT 11 STRATEGIC PLAN 11 LEGISLATION contents 12 SOCIAL RESPONSIBILITY 12 2017 ANNUAL ROADSHOW 12 JCSA LEGAL COUNSEL 13 FINANCIAL REPORT 14 PROJECTS 17 COMMUNICATIONS 18 RECIPROCITY AGREEMENTS

04 JCSA ANNUAL REPORT MESSAGE FROM THE CHAIRMAN CHRIS VAN RENSBURG REFLECTION ON THE STATE OF THE INDUSTRY IN 2017 The state of the industry in 2017 was mainly dictated by political choices that had an adverse effect on the trading environment in South Africa. We saw increases in commodity prices together with deviations in the Rand, which soon stabilised and we started doing business from a new platform. Trading during the winter months was depressed. However, this changed with an increase in sales as spring approached and a better-than-expected Jewellex show. Here s hoping for a good retail festive season that will carry us into the New Year. Wishing you all good business

JCSA ANNUAL REPORT 05 MESSAGE FROM THE CEO LORNA LLOYD The industry has continued to experience challenges in 2017 due to changing market conditions, the global economic downturn, the rise in the price of gold and a volatile currency. In addition, jewellery remains a luxury item that is in competition with smartphones, ipads and travel. Despite these conditions, Jewellex Africa 2017 proved to be enormously successful. The Sandton Convention Centre remains the venue of choice and dates for 2018 have been fixed as Saturday, 6 to Monday, 8 October. Our aim in 2018 will once again be to have a fantastic offering that retailers will not want to miss. The R100 000 cash prize will again be a tempting inducement to attendees! In addition, a decision has been taken to host a consumer jewellery show in 2018. Further details about this will be divulged in the appropriate media in due course. Chris van Rensburg has been appointed by the council s Board as Chairman for another three-year term and his Vice-Chair is Nthabiseng Xaba. One of the main achievements of the council over the past year was its instrumental role in promulgating the VAT Act, published on 1 April 2017, in which the amendment to the definition of second-hand goods became effective. In essence, this means that jewellers or second-hand dealers are able to claim the Notional Input VAT on second-hand gold if those goods are acquired for the sole purpose of being supplied in the same or substantially the same state to another person. At the request of the Jewellery Council, and for the first time ever, the publishers of SA Jewellery News magazine have begun conducting monthly surveys among retailers, wholesalers and diamond traders with the aim of tracking what is happening in terms of jewellery and diamond sales, metal consumption and crime statistics in South Africa. The council continues to prioritise the needs of our retail members. In this regard, we continue to work on matters such as the Standardising of Valuation Practices Recommended by the Jewellery Council of SA, favourable banking rates and Disclaimers Recommended by the Jewellery Council of SA for members to utilise on their receipts/invoices in order to protect them from legal claims, among other issues. In terms of retail training, the council teamed up with EGL College of Gemology and Paramount Consulting to offer courses on product knowledge and selling skills. We participated in Times Media s Wanted Watches, Jewellery & Luxury supplement to promote the council and the importance of consumers purchasing from jewellers who abide by a code of ethics and conduct. In 2018, the council will be embarking on a social media campaign that will run for one year. Ebony & Ivory advertising agency has been appointed to run the campaign on our behalf, with the aim of selling more jewellery and promoting the council and its members to the consumer. Our involvement in the Security Initiative continues to be crucial. Crime is rife and the crime spree targeting jewellery stores appears to be intensifying. The more informed our jewellers are, the better they can arm themselves with information to prevent more robberies. The Jewellery Manufacturers Association of SA continues to offer the Jewellery Manufacturing Trade Certificate (JMTC). In the manufacturing sector, more of our members are participating at Department of Trade & Industry (DTI)- sponsored international exhibitions. We hope to apply to exhibit at more international shows in the coming year. The council has continued to work on its Strategic Plan to help the industry introduce systems that are in line with new legislation. This will be launched in 2018. Any association is only ever as strong as the total sum of its members and we therefore invite you to participate and make use of the opportunities offered by the Jewellery Council. For more information on the council, its activities and how to become a part of a responsible jewellery community, visit our website: www.jewellery.org.za, contact us on tel: 011 484 5528 or email: admin@jewellery.org.za.

06 JCSA ANNUAL REPORT JCSA STRUCTURES Executive Committee representation Chairman (Studio C) Chris van Rensburg CEO (JCSA) Lorna Lloyd Ekurhuleni Jewellery Project Colin Campbell Vice Chairperson (Sibahle Jewellery) Nthabiseng Xaba Isikhova Publishing Andrew Meyer Ben & Co Designs Bheki Ngema Regional Structures Committees KZN Western Cape Chairman Piyuve Aroon Bhoora Chairman Prins and Prins Petré Prins Cherry Design Jewellery Gary Cherry David Bolding Ashok Jewellers Ashok Shah Goldmaster Graham Miller NWJ Duncan Crosson Winhall & De Stadler Peter Winhall CPM Malcolm Jenner Peter Gilder Brendon Parr Eastern Cape Uwe Koeter Johan Louw Chairman Touchstone Glenn Williams Panda Diamonds Brian Magid Ritco Mathias Schmidt CPM - Sharon Eades Havilah Gold Creations Carol Jackson Jenni Collections Bruce Gault CPM Renée Sangerhaus

JCSA ANNUAL REPORT 07 Board member representation REPRESENTATION COMPANY NAME JMASA Manufacturing Division Small Pneuma Jewellers Michael Pneuma Medium Studio C Manufacturing Jewellers (Chairman) Chris van Rensburg Large Natal Wholesale Jewellers Duncan Crosson JASA Retail Division Small Raffaelle D Amato Jewellers Michel Nunes Ben & Co Designs Bheki Ngema Medium Jack Friedman Howard Fevrier Large TFG Philip Lumby JAWDA Wholesale Jenni Collections Bruce Gault Jewellex Sub-Committee JCSA CEO Lorna Lloyd Mining Anglo American Platinum Kleantha Pillay De Beers Abel Madonsela Mineral research Mintek Nirdesh Singh Indian jewellery Piyuve Jewellers Aroon Bhoora HDI jewellers Sibahle Jewellery (Vice Chair) Nthabiseng Xaba Refineries Metal Concentrators Neville Crosse Diamond industry global Ernest Blom Diamonds Ernie Blom Retail interest group (Chevron) Debbie Mouton Jewellers Debbie Mouton Publishing Isikhova Andrew Meyer Training Ekurhuleni Jewellery Project Colin Campbell

08 JCSA ANNUAL REPORT Arbitration & Disciplinary Committee The council continues to offer a facility in which we are able to resolve disputes which may arise between consumers and jewellers as well as members without having to go through the formal legal system, a procedure that involves exorbitant costs. Any complaint received is initially treated through the mediation process, after which arbitration is an option. In certain cases, we utilise the services of our Arbitration Sub-Committee, who offer their expertise and advice. In terms of our Memorandum of Incorporation, the Arbitration & Disciplinary Sub-Committee holds office for a period of three years. The committee members are: GAUTENG Varga Studio C Julian Prior EJP KWA-ZULU NATAL NWJ Vijay Shah Piyuve Shah Jewellers Deon Denysschen Chris van Rensburg Precision Setters Colin Campbell Butch Fitzgerald Vijay Shah Aroon Bhoora Shikant Shah WESTERN CAPE David Bolding Diamonds of Africa Goldmaster Prins & Prins Jewellers Dispute Solutions EASTERN CAPE Dennis Collins Jewellers Havilah R D'Amato Jewellers David Bolding Peter Winhall Graham Miller Petre Prins Mervyn Malamed Dennis Collins Carol Jackson Michel Nunes Non-profit Company The Jewellery Council of SA is registered as a non-profit company and its NPO number is 067-544-NPO. In terms of Section 18A, taxpayers are able to make a deduction from their taxable income when they make donations to NPOs. HUMAN RESOURCES AT JCSA The council s staff complement is as follows: ACCOUNTANT CEO Lorna Lloyd EXECUTIVE PA Andira Maharaj Elsa da Silva RECEPTIONIST ADMIN ASSISTANT OFFICE ASSISTANT Kirsten Lenton Bavina Vassan Priviledge Ncube MEMBERSHIP REPORT The Jewellery Council of SA is made up of the following divisions: Jewellery Manufacturers Association of SA (JMASA) (manufacturing jewellers). Jewellery & Watch Distributors Association of SA (wholesalers and importers, as well as diamond dealers and mining houses). Jewellers Association of SA (JASA) (jewellery retailers and chain stores). Service members

JCSA ANNUAL REPORT 09 TOTAL NUMBER OF MEMBERS UNDER EACH DIVISION PER MONTH MONTH JMASA JCSA JASA SERVICE MEMBERS SECOND HAND DEALERS EMERGING/ONE MAN BUSINESS CHAIN STORES TOTAL JANUARY 201 153 263 7 67 16 975 1682 FEBRUARY 203 151 246 17 64 25 975 1681 MARCH 201 150 235 14 64 27 975 1666 APRIL 202 151 235 12 64 30 975 1669 MAY 206 152 235 12 64 34 975 1678 JUNE 211 157 234 13 64 39 975 1693 JULY 212 158 234 15 64 40 975 1698 AUGUST 214 157 235 15 65 42 975 1703 SEPTEMBER 215 158 236 16 65 41 925 1656 OCTOBER 216 158 235 16 65 42 925 1657 Note that the Chain Stores consist of the following: - The Foschini Group TFG (American Swiss, Sterns and Foschini stores with jewellery) - Massmart (Game) - Arthur Kaplan Jewellers - DW Bullion - Galaxy & Co - NWJ Fine Jewellery

10 JCSA ANNUAL REPORT Consumer complaints The JCSA is an Alternative Dispute Resolution Agent which currently functions only in regard to complaints against members in good standing with the council. The members sign a Code of Ethics and Conduct and are subordinate to the mediation and arbitration processes of the council by virtue of its Memorandum of Incorporation. This means that we will not be able to assist consumers with a complaint against a jeweller which is not a member of the JCSA, as we have no jurisdiction over them. CONSUMER COMPLAINTS STATEMENT OF CLAIMS AND ARBITRATIONS MONTH RESOLVED UNRESOLVED JANUARY 1 1 FEBRUARY 2 2 MARCH 1 1 APRIL 2 2 MAY 1 1 JUNE 2 2 JULY 4 4 AUGUST 1 1 SEPTEMBER 2 2 OCTOBER 1 1 NOVEMBER 2 2 MONTH RESOLVED UNRESOLVED JANUARY 0 FEBRUARY 5 3 2 cautionary notices circulated MARCH 6 3 3 cautionary notices circulated APRIL 0 MAY 4 3 1 cautionary notice circulated JUNE 3 2 1 arbitration JULY 1 1 AUGUST 1 1 SEPTEMBER 1 1 OCTOBER 1 1

JCSA ANNUAL REPORT 11 Quality assurance The JMASA s Executive Committee has looked into the feasibility of implementing a voluntary quality assurance system within the council. Beside the cost factor, the Executive Committee s decision not to pursue the system at this time was due to its unwillingness to create more barriers and inhibit growth within our local market. Art jewellers This year the JMASA created a group to look after the interests of art/contemporary jewellers, the aim of which is to create opportunities at exhibitions, provide exposure and information, and create platforms to share information. Geraldine Fenn from Tinsel represents this group on the Executive Committee. CAD Technicians and Designers Edna de Bruyn from Design @ 50 represents the interests of CAD technicians and designers on the Executive Committee of the JMASA. One of our aims is to register a CAD qualification with the Quality Council for Trades & Occupations. STRATEGIC PLAN A small committee has been working with various professional bodies such as BEESA and Bravura to develop a Strategic Plan. This plan will be presented in the form of an infographic and will be used to explain to government where the industry started and where we are now. It will include a proposal that looks at transformation. The aim is to roll this out in 2018. LEGISLATION Changes in the VAT Act After many meetings and submissions from the council to National Treasury over the past two years, the amendment to the definition of second-hand goods in the VAT Act became effective on 1 April 2017. Essentially, this means that jewellers/second-hand dealers are able to claim the Notional Input VAT on second-hand gold (goods containing gold) if the goods are acquired for the sole purpose of being supplied in the same or substantially the same state to another person. Note that the Notional Input VAT amendment only applies when buying goods from a non-vendor, i.e. a person or company not registered for VAT. Second-hand dealers and refiners can claim VAT back on second-hand jewellery sold to them using the VAT 264 form, provided the requirements above are satisfied. VAT refund claims tourists In terms of current legislation, foreign tourists who visit SA and who purchase jewellery exceeding R10 000 are required to declare proof of where they obtained the cash, whether it be from an ATM, a bank or a Bureau de Change. Most tourists do not know of this requirement and are therefore unable to provide the proof of cash drawings, with the result that our members inevitably lose the sale. The JCSA has presented a submission to the SA National Revenue Service (SARS) and the National Treasury to increase the threshold to US$ 10 000. Provisional VAT payments on temporary imports Earlier this year, the JCSA was approached by jewellery companies from our neighbouring countries with a request to assist them by challenging SARS about its requirement that on temporary imports to SA, provisional import VAT is payable for shipments higher than R14 000. Services affected are sending goods for warranty claims,

12 JCSA ANNUAL REPORT repairs, sending gemstones for grading and sending sweeps and filings. The suppliers (or South African wholesalers) are therefore required to effect provisional payments via e-filing towards their SARS VAT account and supply the courier company or the clearing agent with the relevant proof of payment, so that the shipment can be released. This red tape is doing more harm to intra-border trade between African countries. We are in the process of discussing the matter with our wholesalers. the formation of a Jewellery Industry Liaison Committee to liaise with key industry players on a regular basis in order to discuss updates within the SADPMR, as well as contentious issues from an operational point of view. A response is still awaited in this regard. The council continues to assist members in speaking to the Regulator when experiencing difficulties in applying for their permits. SOCIAL RESPONSIBILITY South African Diamond and Precious Metals Regulator (SADPMR) Bernard Stern, who is a past owner of Metcon, was appointed to the board of the Regulator. He looks after our interests and is our spokesperson to the Regulator. The council has proposed that the SADPMR consider Chairman s Fund The Chairman s Fund was established by the Chairman of the Jewellery Council of SA, Chris van Rensburg, in November 2007. His original idea was to donate his Chairman s remuneration to the Chairman s Fund. In addition, 25% of the board s unclaimed fees for travel expenses would go into the fund, even if these members are unable to attend the meeting. The purpose of the fund is to contribute to transformation and the integration of technology and design in the jewellery industry by acknowledging excellence in jewellery design. This will support selected training initiatives focused on developing capacity to utilise technology in the production of jewellery. To date, in addition to the contribution from the board, the Chairman s Fund has received contributions from companies such as Cape Precious Metals and American Swiss. In 2016, the SAJC s Chairman s Fund covered tool costs for students from the Durban University of Technology who were unable to afford them. 2017 Annual Roadshows The JCSA invited members and for the first time in many years non-members to attend the national roadshows which were held in July this year. The shows were held in Durban, Port Elizabeth, Cape Town and Johannesburg, with an additional one hosted for the first time in Pretoria. We thank our sponsor, the Gemological Institute of America, for its sponsorship of all the roadshows nationally. JCSA Legal Counsel The JCSA employed the services of attorney Hanro Friedrich, owner of law firm Friedrich Incorporated, on a retainer basis in 2017. His input has been particularly valuable when we are dealing with mediations and arbitrations, whether it be between consumers and member jewellers or between members. Friedrich also has assisted the council with important documents, contracts and various submissions to government.

JCSA ANNUAL REPORT 13 FINANCIAL REPORT JEWELLERY COUNCIL OF SA Financial Statements for the year ended 31 December 2016 Statement of Financial Position Figures in Rand Note(s) 2016 2015 Assets R R Non-Current Assets Property, plant and equipment 2 134 766 174 384 Investments in associates 3 400 00 400 000 Loans to group companies 4 97 295 281 431 632 061 855 815 Current Assets Trade and other receivables 5 303 481 883 556 Prepayments 22 534 181 968 Cash and cash equivalents 6 6 304 094 5 806 345 6 630 109 6 871 869 Total Assets 7 262 170 7 727 684 Equity and Liabilities Equity Retained income 6 764 742 6 870 779 Liabilities Current Liabilities Trade and other payables 7 293 234 773 759 Provisions 204 194 83 146 497 428 856 905 Total Equity and Liabilities 7 262 170 7 727 684

14 JCSA ANNUAL REPORT JCSA Debtors Book Debtors whose 2016 membership fees were still outstanding this year have been circulated to the industry and were also handed over to Accountability to be blacklisted. Suspension of Members The names of members on the suspension list have been circulated to the industry, due to non-payment of membership fees and members have been advised to exercise caution when dealing with such members. The said debtors were also handed over to Accountability and will be blacklisted. Lorna Lloyd will ensure that due process is followed in this regard. PROJECTS Jewellex Africa 2017 Despite the economic climate, Jewellex Africa 2017 proved to be enormously successful. Although the show was smaller, in general, of the exhibitors who conducted business, 80% of them will definitely exhibit again and 20% will consider exhibiting again. From the feedback received, exhibitors felt that the Sandton Convention Centre was the ideal venue and the majority requested the show to once again be held in early October, starting on a Saturday. GENERAL STATISTICS OVER THE YEARS - JEWELLEX AFRICA GENERAL INFORMATION 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Exhibitors total 155 137 133 119 115 95 79 114 113 100 Space given away (m²) 203 101 24 24 18 59 98 191 75 57 Space sold (m²) 1 975 1 869 1 976 1 709 1 754 1 315 994 1 481 1 419 1 208 Total exhibition space (m²) 2 178 1 994 2 000 1 733 1 772 1 374 1 059 1 672 1 494 1 265 Jewellex function guests 350 0 163 208 178 0 224 220 165 230 Jewellex breakfast 0 0 119 78 58 65 0 0 0 0 Total visitors 3 527 3 219 3 232 2 771 2 149 1 957 1 725 1 578 1 571 1 487 Sponsors State Diamond Trader Diamond Pavilion Metal Concentrators Coffee Shop Visitor Feedback The majority of visitors to Jewellex stated that their key objectives in visiting were seeing new brands/products/ services, networking with the industry and strengthening relationships with current suppliers. Brinks GIA BYL Diamonds CJR Gift Sales Gemfields Lanyards Carrier bags Registration Branded water bottles Wi-Fi

JCSA ANNUAL REPORT 15 2017 Speaker s Corner This year, for the first time, a Speaker s Corner was introduced where talks and discussions took place. The Speaker s Corner was positioned as part of the Metcon Coffee Shop and various industry players were also interviewed by a Metcon spokesperson. Cocktail Function The Jewellex cocktail function was proudly sponsored by Cape Precious Metals, De Beers and Gauteng IDZ. It took place on Monday, 9 October in the Bill Gallagher Room at the Sandton Convention Centre. This was also the first time that there was no charge to attend this networking event and many complimented the Council on the more relaxed atmosphere. Best Stand of the Year Awards Winners Design Stand category: Protea Diamonds Standard Package category : Real Gold Wholesalers & Punto Diamante R100 000 Cash Prize Draw For the first time, the JCSA sponsored a R100 000 cash prize draw. It was a competition requirement that the prize money be used solely for the purchase of merchandise or services from exhibitor(s) that exhibited at the Jewellex show. The promotion was open to business-owners, any managing member(s) and/or shareholder(s) of any business within the jewellery industry of SA, on the condition that the entrant was a member in good standing with the JCSA. JCSA Jewellery Manufacturing Trade Certificate The JMASA, a division of the council has, over the past year, continued to work on the implementation of the Jewellery Manufacturing Trade Certificate (JMTC), which is a trade test set up by and for the industry. It was initially offered to the JCSA as a service so that members and their staff could complete the test and obtain this industryrecognised qualification. This service has been extended to non-members at an additional cost. The JMTC is not in competition with and in no way replaces the sanctioned trade test. In 2017, a total number of three candidates successfully completed the test, which was held over a two-day period at the Tshwane University of Technology. Skills Qualifications The JMASA has drawn up specialised qualifications for skills which are not currently being trade tested. These skills include: Bench Technician CAD Technician Indian Jewellery Bench Technician Jewellery Casting Technician Surface Finishing Technician Refining Technician (work in progress) CAD Production Technician JCSA Collection Awards Design Competition The JMASA invited all students, apprentices, designers and manufacturers to enter the JCSA Collection Awards Jewellery Design Competition 2017 to design and manufacture a ring that could be sold commercially. The theme was Jewellery for Him, with two categories: Handmade and CAD. We thank our sponsors, CPM, Metal Concentrators and Piyuve Jewellers, as well as the Ekurhuleni Jewellery Project, which sponsored the trophies. The winner in the CAD Designer Jewellery category was Kgomotso Moloto from Keith White Designs and the winner in the Handmade Jewellery category was Lumka Nonku Dhlamini from Keith White Designs. The runner-up in the CAD Designer jewellery category was Zanele Shongwe from Design @ 50 and the runner-up in the Handmade Jewellery category was Lincoln Mokoena from Ekurhuleni Jewellery Project. Retail Training Training was well received and interest had been shown in offering courses in other major centres around the country. Paramount Consulting and EGL The council continued its partnership with Paramount Consulting to offer management and sales training to retailers in Johannesburg and Cape Town. We also entered a new partnership with EGL to conduct Diamonds and Coloured Gemstones courses to our retail members in Johannesburg. Members attending both courses received discounted rates. Design @ 50 In 2013, the GGDA appointed the JCSA to project-manage a unique post-graduate course in commercial jewellery design and product development, Design @ 50.

16 JCSA ANNUAL REPORT At the beginning of each year, the council assists in the selection of 15 students who are required to have jewellery-related qualifications, as well as knowledge of and experience in computer-aided design. The council is involved in the appointment of a product development expert who is from the industry to work with students for two to three months. An important part of the council s responsibilities is the placement of students and alumni in employment within the industry, as well as placing them in incubation facilities. Ekurhuleni Jewellery Project (EJP) The CEO of the Council, Lorna Lloyd, continues to serve as a Director on the board of the EJP, which is a non-profit organisation offering skills programmes and industry training. It also has incubatees who have access to fully equipped workshops, production services and technical support. This allows them the opportunity to develop their own business in a secure and enabling environment. The workshops have been set up with state-of-the-art equipment. Standardising of Valuation Practices for JCSA Each year, the Jewellery Council revises its Recommendations for Valuation Practices, which we do by circulating the document to all members for input. At present, we are negotiating with the insurance companies to get their support for our recommendations. We are also working on creating a membership division within the council to represent insurance companies JCSA Marketing Campaign 2017 Valentine s Jewellery Week The council invested R750 000 in a Valentine s advertising campaign in February this year. The campaign proved to be a huge success. Ebony & Ivory Advertising Agency ran the campaign on social media and the council s website, as well as competitions over five days on Radio 5 giving away prizes from member jewellers. We have been able to build up a database of entries from our website. The council put together a number of creative elements on a USB to help our members sell more jewellery over the Valentine s period. These included posters, adverts, window decals and pamphlets. JCSA Recommended Disclaimers We have been working on disclaimers which members can utilise on their invoices and valuations to protect themselves, should any unforeseen discrepancies and disputes arise with the consumer. This has not been a simple process, as the Consumer Protection Act has radically altered the way of conducting business, with specific reference to product liability and the weighing up of obligations on the part of the supplier/jeweller compared with the rights of the consumer. Jewellery Council Risk Initiative The Jewellery Council Risk Initiative has been in operation for six years and members continue to receive regular updates of crime incidents reported by jewellery stores from the Consumer Goods Council of SA (CGCSA). The CGCSA have been tasked with a set of deliverables relating to crime which it is expected to produce by the end of the year. An exciting development is our collaboration with the Council of Shopping Centres (CSC), which represents most of the shopping centres in the country. Together with the CSC, we have drawn up a list of recommendations which shopping centres are encouraged to implement. These include having permanent on-site armed response vehicles, visible armed guards at all entrances, physical perimeter fences/walls, spiked booms, CCTV, satellite police stations and malls locked down outside business hours. The retailers are also encouraged to implement a list of recommendations, such as sufficient CCTV coverage, ensuring that all employees and security are regularly vetted, installation of security gates, installation of smoke alarms, not allowing individuals into the store after business hours, reporting suspicious behaviour, distributing high-value items throughout the store in display cabinets, etc. It is imperative that our jewellers work together to share as much crime-related information as possible and that they do this as soon as possible after the incident. Certificate of Compliance Watch Sector The South African Bureau of Standards (SABS) has imple-

JCSA ANNUAL REPORT 17 mented regulations, effective as of 1 November this year, which require watch companies/importers, to prescribe national standards for the performance and operation of certain watches and clocks. Such companies are required to obtain Certificates of Com-pliance for all such items and to submit these to the SABS on an annual basis. This is an extremely costly and arduous exercise. Watches and clocks that fall into this category are those which generate electromagnetic waves, electronic watches, DC products and oscillator clocks. The JCSA has initiated a process with the SABS in which we will make a submission and motivate why watches and clocks should be excluded from this legislation. Promoting Locally Manufactured Jewellery For many years, the Chairman of the council, Chris van Rensburg, has taken every opportunity to promote local content and import replacement. We continue to pursue this policy and will make further efforts to ensure that importers have a better understanding of the potential benefits of employment and beneficiation. International Trade Shows The JCSA once again worked closely with the DTI to offer jewellery manufacturers an opportunity to exhibit at various international fairs by providing financial support. In the past year, we participated at the following exhibitions: International Jewellery Show Tokyo (IJT) JANUARY Nineteen companies exhibited at the IJT and the feedback was positive. The Jewellers International Showcase Miami (JIS) APRIL The council s CEO attended the JIS exhibition with 19 DTI-sponsored South African jewellery manufacturers. It was the first time that a South African pavilion had been showcased in the USA. Jewellex Africa 2017 OCTOBER The DTI sponsored 14 SMME companies to exhibit at Jewellex. Nine of them were jewellery companies, four were diamond companies and one was a clock manufacturer. The diamond companies formed part of the Diamond Pavilion, which was sponsored by the State Diamond Trader. The Xifu International Gold Wedding Jewellery Design Competition The JMASA invited all manufacturers to enter the Xifu International Gold Wedding Jewellery Design Competition in March 2017. The competition was jointly organised by JNA and CJNA of UBM Asia, the World Gold Council and the People s Government of Yantian District, Shenzhen and Shenzhen Batar Investment Holding Group Ltd. This biennial event aimed to provide an international platform for artistic, creative and adept designers and students to demonstrate their talents and inventive jewellery-designing skills. The competition was open to professional jewellery designers at all stages of their careers, as well as students and graduates of all jewellery design disciplines. COMMUNICATIONS SA Jewellery News Isikhova Publishing publishes the SA Jewellery News magazine for the industry. Members are continually encouraged to be more interactive with the magazine by sending news and announcements, as this is their mouthpiece to the industry. Earlier this year, the JCSA approached SA Jewellery News to conduct a monthly survey, with results to be published in the magazine each month. The aim of the survey is to gain an indication of what is happening in terms of jewellery and diamond sales, metal consumption and crime statistics in SA. The survey has commenced and is being conducted among retailers, manufacturers, wholesalers and diamond traders. Each receives a few questions to complete. There are no actual figures requested. Questions refer to percentage increases or decreases. SA Jewellery News then combines all these results and publishes a monthly page entitled Business Barometer. We have requested members

18 JCSA ANNUAL REPORT to commit their company information for a 12-month period. If everyone, who has committed to participate provides their monthly information, we will be able to gauge quite accurately in percentage terms the growth or decline of the various sectors in the industry. African Odyssey This year, Isikhova Publishing published African Odyssey, featuring the Born in Africa listing of all manufacturing members, sponsored by the publishing house. The DTI has informed the JCSA that it will no longer fund the project on behalf of the council. Wanted and Shine Skitter For many years, the council and our members participated in the Shine Skitter books, namely True Love, Fairlady, Sarie and Grazia. These supplements featured jewellery and other luxury items. This was discontinued in 2017 due to financial constraints. 2017 was the second year in which Times Media published its Wanted Watches & Luxury supplement in October. The Jewellery Council had a competition page in which it offered a prize, the aim of which was to promote its members to the consumer. The publication was distributed in Business Day and the Sunday Times. D6 Communicator A decision was taken by the Executive Committee to discontinue the use of the D6 Communicator as a communication tool for members. Members continue to receive communications via email. Website and Facebook We have become extremely active in ensuring that the image of the council and that of our members are out there. Our website is updated constantly and we communicate with consumers on our Facebook page. The council also created a closed Facebook page which is slowly growing. We hope that this will be a platform used by our members to create opportunities and develop ideas. Publicity The council utilises any opportunity to publicise itself and its members, whether in print or on radio. Being a non-profit company, we plan our publicity budgets well in advance. Employment-seekers list The JCSA holds a list of employment-seekers in the industry and upon request, we release the list to member jewellery companies. We do not involve ourselves in the actual placing of staff. We merely provide a platform to refer potential employees. RECIPROCITY AGREEMENT National Antiques & Decorative Arts (NAADA) As there are many synergies between the council and NAADA, we have entered into a collaboration with this organisation in which we exchange ideas, information and opportunities. NAADA members have also been invited to become members of the council. In so doing, they will be able to benefit from the Jewellery Council Risk Initiative with the Consumer Goods Council. Diamond Dealers Club of SA (DDCSA) The council recently entered into a reciprocity agreement with the DDCSA. These organisations have acknowledged that their respective members share a common market which relates to diamonds and jewellery. They have agreed as follows: 1. To share information relating to the identities of those parties who have been placed on their respective cautionary notices and who are in default. 2. To follow due processes as prescribed by their respective Articles of Association, constitutions and by-laws, as the case may be, before any member or other party is identified as having been placed on the cautionary notice list or listed as a defaulter. The respective parties can indemnify each other against any legal steps that may be taken against either of them upon publication of the identity of the party in the cautionary notice. 3. To share the information within a reasonable time. 4. To act with the necessary discretion and highest degree of transparency towards one another. 5. This agreement shall lapse as soon as one of the parties becomes inactive, alternatively, either party may withdraw at its sole discretion. 6. To invite a member from either the DDCSA or the JCSA s Arbitration Committee to assist it in any manner required during its arbitration proceedings, based on the invited member s expertise.

THANK YOU TO OUR 2017 BENEFACTORS AND PARTNERS NORMAN VAN ROOYEN JEWELLERY SECURITY CONSULTANTS

JEWELLERY COUNCIL OF SOUTH AFRICA Address: The Hamlet, 27 Ridge Road, Parktown, Johannesburg Tel: (011) 484 5528 Fax: 086 504 9512 Email: admin@jewellery.org.za