Africa has the largest reserves of colored gemstones globally. About 70% of gemstones produced globally are mined in Africa. The global gemstones & jewelry market is projected to be over US$443 billion by the end of year 2022. This comes following the growth of the tourism industry and growth in demand for gemstone and jewelry in a report released in 2015. With the market estimated at US$300 Billion, it was shown that Africa has only a 3% market share with Asia Pacific having 59%.
Nigeria's production of gemstones and jewelry is hardly recognized or featured in any analysis of the global industry. However, Nigeria's sapphires and tourmalines are quite often noted for their quality. In spite of being the largest economy in Africa, it is common knowledge that the mining industry in Nigeria is hugely underdeveloped and some general issues plaguing the gemstones value chain are widespread illegal activities, weak oversight, minimal value addition and low revenue collection.
These challenges are not specific to Nigeria but are particularly acute in most countries that primarily produce colored (non-diamond) gemstones. While the dominance of international mining companies and significant attention from the international community has driven a degree of formalization and policy development in the diamond sector, the colored gemstone industry remains decentralized and de-emphasized by comparison. Lack of extensive research and engagement by government, private sector, academic and civil society stakeholders have limited public knowledge regarding the wide range of colored gemstone resources and their equally diverse markets.
This naturally has a huge influence and impact on the entire gemstone value chain including beneficiation and jewelry manufacturing.
The Global gemstone and jewellery industry is currently worth about US$300 billion and is projected to cross US$443 billion by 2022[1], a healthy growth of over 4.73% per annum, chiefly driven by supportive legislations regarding the authenticity of the jewellery, aggressive marketing and promotional strategies by leading jewellery companies and rising women employment and resultant dual household budgets, elevated spendable income and its demand for religious and customary purposes. This huge market has as its Global leader India with a market share of about US$60 billion as recorded in 2017 and is expected to reach $100-110 billion by 2021-2022, and contributes around 7 per cent of the country’s GDP employing over 4.64 million workers which is projected to rise to 8.23 million by 2022.[2]
It is a well-known fact that the Nigerian economy does not benefit financially from the lucrative trade in its gemstones. Current contribution of the solid minerals sector to GDP averages about a paltry 0.3%.[3] This loss of revenue owes largely to laundering. The former Minister of Mines and Steel Development, Dr. Kayode Fayemi, has said gemstones worth $3 billion are exported annually from Nigeria, but mostly unofficially.[4]
It is also noteworthy to point out that Nigeria contributes about 10% (US$1.2 billion) of the total US$12 billion revenue generated annually by Thailand from gemstone.[5] We are losing tremendously on all sides and it is therefore critical to urgently revisit our disorganized gemstone and jewellery sector and turn the tables by making Nigeria a global hub just as India has done.
It is with this in mind that the AGJES Tradeshow in its 3rd edition intends to expand the boundaries dealing with issues focusing on developing this sector to improve processes along the value chain and birth great African brands that can compete globally. We are looking at overall packaging in our downstream areas for exports and to meet international standards and ensure that the Nigerian economy benefits financially from the sector.
Our intention with the African Gems and Jewellery Exhibition and Seminar (AGJES) is to create a platform to galvanize development of the gemstones, precious metals and jewellery value chain in Nigeria, ultimately to position Nigeria as a commercial hub for the Industry throughout the African continent and globally. Our hope is that this will help start the important conversations and awareness that will translate this sector into a multi-billion-dollar industry delivering commensurate benefit to the various players in the sector.
The flagship event of the AGJES Trade show was held in 2017 at Transcorp Hilton themed: “Nigeria Gemstones: Mines to Market”. In 2018, the Tradeshow event was held at NAF Conference Centre, Abuja, themed, “Mines to Market: Collaborating to Enhance Industry Linkages”. Both events showcased relevant players and stakeholders in the mining industry across the entire value chain and attracted over 3000 visitors within the event period with about 100 Exhibitors displaying their products.
We had a great turnout at the TRADESHOW in 2018 and we thank all those who are part of the journey.
We have decided to expand the boundaries this year by establishing our market here in Africa and inviting the global industry to view and participate in our domestic industry's efforts. Our session topics are focused on discussing beneficiation of precious metals and gemstone products out of Africa. We also aim to illustrate a pathway for domestic companies to be packaged and showcased to the world. The topics selected will strike up deep conversations about where we are in the retail space as an industry and where we ought to get to.
Specific key areas we are looking at include:
I. Branding and packaging the domestic industry
2. Increasing number of gemstones products being retailed to the rest of the world from Africa
These are exciting times for us in Nigeria and Africa and we hope you will join us in making this continent proud once again.
Yours sincerely,
From the Promoters of AGJES Tradeshow
Lotanna Amina Okpukpara and Jummai Muhammed Oluyede
REFERENCES
[1] “How Gems & Jewellery Sector Plays a Significant Role in the Indian Economy”. www.businessworld.in. 2019-04-25.
[2] “Gems and Jewellery Industry in India”. www.ibef.org. 2019-03.
[3] “Nigeria: Nigeria’s Solid Minerals as a Source of Economic Development”. www.mondaq.com. 2018-11-09.
[4] “Nigeria gemstones’ export valued at $3bn annually – Minister”. www.dailytrust.com.ng. 2017-10-20.
[5] “Nigeria Contributes 10% to Thailand’s $12bn Gemstone Market”. www.thisdaylive.com. 2018-03-15.Borrowing a leaf from Madagascar where, according to the Chamber of Mines, the mining sector currently attracts 40% of all FDI in the country and represents 30% of all exportations and 2,12% of GDP.
