Abstract
This study examines how strategic alliances can best leverage the advancement and transformation of the South African Diamond Beneficiation Industry in the post-apartheid era, through the joint efforts of the government, diamond producers, and beneficiators. The South African Diamond Industry has historically been shaped by structural inequalities and policy reforms, notably the Diamond Amendment Act 29 of 2005, which sought to advance transformation but has had mixed outcomes. Against this backdrop, the research examined the sustainability, enablers, barriers, and future directions of the industry.
Guided by an interpretivism paradigm and a qualitative research design, the study employed purposive and convenience sampling to select twelve participants representing government regulators, diamond producers, and beneficiators. Of these twelve participants, three were government regulators, two of diamond producers and seven were diamond beneficiators. Data was collected through semi-structured interviews conducted through virtual platforms on Microsoft Teams and were analysed thematically. Data was collected from participants based in Northen Cape and Johannesburg in South Africa. Ethical clearance was obtained from the University of Johannesburg Business Management Research Ethics Committee, and measures to ensure trustworthiness included credibility, transferability, dependability, confirmability, and authenticity.
Findings revealed five major themes: (1) Strategic Alliance as an enabler of transformation and beneficiation, (2) sustainability challenges driven by declining rough diamonds production and limited access to finance, (3) high labour and factory costs undermining competitiveness, (4) branding and market positioning as potential survival strategies, and (5) the future direction of the South African Diamond Industry. The study concludes that while South Africa cannot compete with low-cost centres such as India on labour, opportunities exist in niche, high-value beneficiation, branding, and regional collaboration. Strategic alliances are not optional but necessary to unlock financing, ensure fair access to rough diamonds, and enable meaningful participation of Historically Disadvantaged South Africans...