precious stones and jewellery sector · figure 4 : trade balance, top 10 importers of precious...

Ministry ofIndustry and CommerceIslamic Republic of Afghanistan

AFGHANISTAN’SNATIONAL EXPORT STRATEGY 2018-2022

PRECIOUS STONES AND JEWELLERY SECTORRevealing Afghan beauty to international markets

AFGH

ANISTAN

• NATIO

NAL EXPO

RT STRATEG

Y - PRECIOUS STONES AND JEW

ELLERY SECTOR •

2018-2022

ITC is the joint agency of the World Trade Organization and the United Nations. As part of ITC’s mandate of fostering sustainable development through increased trade opportunities, the Chief Economist and Export Strategy section offers a suite of trade-related strategy solu-tions to maximize the development pay-offs from trade. ITC-facilitated trade development strategies and roadmaps are oriented to the trade objectives of a country or region and can be tailored to high-level economic goals, specific development targets or particular sectors, allowing policymakers to choose their preferred level of engagement.

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AFGHANISTANNATIONAL EXPORT STRATEGY2018-2022PRECIOUS STONES AND JEWELLERY SECTOR

This project is funded by the European Union

Ministry ofIndustry and CommerceIslamic Republic of Afghanistan

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ACKNOWLEDGEMENTS

The Precious Stones and Jewellery Strategy is an integral part of Afghanistan’s National Export Strategy. It was developed under the aegis of the Islamic Republic of Afghanistan, the leadership of the Ministry of Industry and Commerce, Afghanistan Women Chamber of Commerce and Industry, and the Afghanistan Chamber of Commerce and Industry, in close collaboration with the Afghanistan National Standards Authority. The Strategy benefited from the contributions of sector stakeholders and associations, who played an important role in the consultative process. This Strategy was elaborated thanks to technical assistance provided by the International Trade Centre, and falls under the framework of the European Union ( EU )-funded ‘Advancing Afghan Trade : EU Trade Related Assistance’ project.

This document reflects the ambitions of the public and private stakeholders who defined the enhancements and future orientations for the sector with the objective of increasing export performance and social dividends.

iv

NOTE TO THE READER

Afghanistan’s NES was developed based on a participatory approach during which over 500 Afghan industry leaders, small business owners, farmers and public sector representatives held consultations to reach consensus on key sector com-petitiveness issues and priority activities. These inclusive consultations were held throughout the country, including in Mazar-e-Sharif, Herat, Kandahar and Kabul, with participation of stakeholders coming from Nangarhar Province.

Besides in-depth research and value chain analysis, these consultations were com-plemented by:

� Factory visits through which supply chain assessments were carried out to gain further knowledge on key issues such as quality procedures, technical skills, lean management, quality of raw materials, access to market, etc.

� Interviews with domestic, regional and international buyers to guide the NES with strategic insights and market intelligence as well as buyers’ requirements in terms of quality standards, food safety, packaging, buying cycles, distribution channels, prices, etc.

� Donor coordination meetings to identify synergies with ongoing / planned ini-tiatives of development partners to eventually result in collaboration during the implementation phase.

In spirit and in action: The NES is aligned with existing national and sector-specific plans and policies and builds on ongoing initiatives in areas related to private sector development, regional integration, investment, and youth and women’s economic empowerment.

Equally important, the NES initiative already accommodates budgeting to support implementation of critical pilot activities identified during the design process. This will ensure that impact and momentum are generated from early on, and support further resource mobilization and confidence-building.

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The principal outputs of the NES Afghanistan design initiative are endorsed, coherent and comprehensive export Strategy documents with a five-year detailed plan of ac-tion ( PoA ) and implementation management framework. These documents include:

1. A main NES document, which contains Trade Support Functional strategies, offering critical support across value chains and acting as enablers for sector development.

2. Individual NES priority sector strategies packaged as separate documents but in alignment with the main NES findings and overarching strategic objectives.

NES Afghanistan

Main NES document comprising Trade Suppor t Functional Strategies:

� Quality management � Trade facilitation � Trade information and promotion � Skills development � Business and professional services � Access to finance

Individual NES priority sector documents:

� Saffron � Fresh fruits and vegetables � Dried fruits and nuts � Carpets � Marble and granite � Precious stones and jewellery

vi

CONTENTS

Acknowledgements iii

Note to the reader iv

EXECUTIVE SUMMARY 1

PRECIOUS STONES AND JEWELLERY : A BRILLIANT OUTLOOK AT THE GLOBAL LEVEL 3

SWITZERLAND 4

HONG KONG ( CHINA ) AND MAINLAND CHINA 5

UNITED STATES 6

UNITED KINGDOM 7

INDIA 7

UNITED ARAB EMIRATES 8

AN OVERVIEW OF PRECIOUS STONES AND JEWELLERY IN AFGHANISTAN 9

KEY CURRENT PRODUCTION STATISTICS 9

SOCIOECONOMIC IMPACT 10

AFGHANISTAN’S EXPORT PERFORMANCE 10

VALUE CHAIN ANALYSIS 13

Input supply 13

Production 13

Processing 14

Distribution 14

POLISHING THE KNOWLEDGE OF KEY COMPETITIVENESS CONSTRAINTS 16

COMPETE 16

CONNECT 19

CHANGE 21

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MARKETS FOR AFGHANISTAN’S PRECIOUS STONES AND JEWELLERY SECTOR 23

SHINY FUTURE FOR THE PRECIOUS STONES AND JEWELLERY INDUSTRY AND TRADE 23

MARKET SEGMENTATION 23

FOLLOWING THE LATEST TRENDS 24

Internationalization of brands 24

E-commerce is the fastest-growing channel for jewellery 24

Appealing to young audiences requires product development and an acceleration of supply chain processes 24

PRECIOUS OPPORTUNITIES : CONSOLIDATED AND EMERGING MARKETS 25

Short-term priorities ( 1–3 years ) 25

Medium-to-long term ( +3 years ) 26

STRATEGIC OPTIONS FOR REVIVING AND PROMOTING AFGHAN PRECIOUS STONES AND JEWELLERY 31

VISION 31

STRATEGIC OBJECTIVE 1 : INCREASE PRODUCTIVE CAPACITY WHILE SUPPORTING DIVERSIFICATION AND ENTREPRENEURSHIP. 31

STRATEGIC OBJECTIVE 2 : IMPROVE THE REGULATORY FRAMEWORK AND INFRASTRUCTURE SUPPORT 33

STRATEGIC OBJECTIVE 3 : CREATE AND PROMOTE AN AFGHAN PRECIOUS STONES AND JEWELLERY BRAND 35

MOVING TO ACTION 37

KEY REQUIREMENTS FOR EFFECTIVE IMPLEMENTATION 37

STRATEGIC PLAN OF ACTION 39

REFERENCES 49

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FIGURES

Figure 1 : Theory of change 2

Figure 2 : World exports in the precious stones and jewellery sector, 2005–2016 ( US $ billions ) 3

Figure 3 : Top 10 exporters in the precious stones and jewellery sector ( US $ billions ) 3

Figure 4 : Trade balance, top 10 importers of precious stones and jewellery, 2016 ( US $ billions ) 4

Figure 5 : Afghanistan’s exports of precious stones and jewellery, 2005–2016 ( US $ millions ) 11

Figure 6 : Afghanistan’s top export destinations for precious stones and jewellery, 2005 ( US $ thousands ) 12

Figure 7 : Afghanistan’s top export destinations for precious stones and jewellery, 2015 ( US $ thousands ) 12

Figure 8 : Afghanistan’s exported precious stones and jewellery, 2016 12

Figure 9 : Current value chain 15

Figure 10 : Problem tree – compete 18

Figure 11 : Problem tree – connect 20

Figure 12 : Problem tree – change 22

Figure 13 : Jewellery segmentation and indicative prices 24

Figure 14 : Future value chain – strategic objective 1 32



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BOXES

Box 1 : Switzerland 4

Box 2 : Hong Kong ( China ) and China 5

Box 3 : United States 6

Box 4 : United Kingdom 7

Box 5 : India 8

Box 6 : United Arab Emirates 8

Box 7 : Varieties of raw materials 9

Box 8 : Export potential in India 26

Box 9 : Export potential in the United States 27

Box 10 : Export potential in the UAE 29

Photo: ITC

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ACRONYMS

The following abbreviations are used :

ACCI Afghanistan Chamber of Commerce and Industries

ACIM Afghanistan Chamber of Industries and Mines

ANSA Afghanistan National Standards Authority

AWCCI Afghanistan Women Chamber of Commerce and Industry

EPAA Export Promotion Agency of Afghanistan

EU European Union

FACT Federation of Afghan Craftsmen and Traders

ICC International Chamber of Commerce

ITC International Trade Centre

MoCI Ministry of Commerce and Industries

MoE Ministry of Education

MoF Ministry of Finance

MoLSAMD Ministry of Labour, Social Affairs, Martyrs and Disabled

MoMP Ministry of Mines and Petroleum

NES National Export Strategy

PoA Plan of action

PSU Precious Stone Union

SMEs Small and medium-sized enterprises

TVET Technical and vocational education and training

UAE United Arab Emirates

Photo: ITC

[ EXECUTIVE SUMMARY ]

1

EXECUTIVE SUMMARY

The Afghan precious stones and jewellery sector offers a shining future to the country’s handicraft industry. With its many stages of production, the sector holds opportunities to generate inclusive employment for women, youth and peo-ple in rural areas at different value chain steps.

Precious stones and jewellery production are deeply rooted in the Afghan culture. In recent years, greater use of e-commerce has facilitated access to Afghanistan’s hidden gems and unique Afghan pieces have been rediscovered by international markets. The increasing visibility of Afghan jewellery paired with international demand for unique, handmade products contributes to a brilliant outlook for the sector. Unlocking this potential will unveil Afghan art and tradition to world markets.

At present, the sector’s export potential is constrained by supply-side and business environment challenges, as well as difficulties entering new markets. Improvements across the value chain are needed to overcome these hurdles, in areas ranging from mining techniques to processing meth-ods and introducing modern technology.

The Strategy thus aims to achieve the following impacts, with the overarching goal of strengthening the Afghan pre-cious stones and jewellery sector’s value proposition to in-ternational buyers. Some of the specific objectives are :

� Increase precious stone and jewellery production in terms of volume and value ;

� Diversify product and design variety and target markets ; � Establish Afghan precious stones and jewellery as

unique, handmade products with a lasting brand in in-ternational markets ;

� Increase the inclusion of women, youth and people in ru-ral areas, and spread socioeconomic benefits to actors across the value chain.

The Strategy is driven by the following overall vision :

“ Precious stones and jewellery : revealing Afghan beauty

to international markets ”To achieve this vision, the Strategy focuses on three strate-gic objectives.

STRATEGIC OBJECTIVE 1 : INCREASE PRODUCTIVE CAPACITY WHILE SUPPORTING DIVERSIFICATION AND ENTREPRENEURSHIP

This strategic objective aims to professionalize and stand-ardize both mining and processing practices in order to achieve larger-scale production. As a part of this objective, entrepreneurship will be encouraged and management skills enhanced. Efforts will be made to improve access to finance in order to facilitate purchasing the modern machinery and tools needed to perform advanced value addition.

STRATEGIC OBJECTIVE 2 : IMPROVE THE REGULATORY FRAMEWORK AND INFRASTRUCTURE SUPPORT

This strategic objective will focus on improving coordina-tion between the various actors involved in the value chain, including miners, intermediaries, exporters, processors, re-searchers and other sector stakeholders. Success in this area will be achieved through improved sector governance, improved access to quality testing and certification, institu-tional support and empowered sector associations, with a particular focus on organizations led by women.

STRATEGIC OBJECTIVE 3 : CREATE AND PROMOTE AN AFGHAN PRECIOUS STONES AND JEWELLERY BRAND

The aim of this objective is to build on recent but still fragile achievements of the Afghan precious stones and jewellery sector in order to cement a high reputation in international markets. This objective can be attained by supporting an integrated approach to promoting and commercializing the unique products within the sector export basket. Adequate support is needed for the quality-testing institutions and cer-tificates that will protect the reputation of Afghan precious stones and jewellery.

Finally, this objective will focus on building the capacity of select enterprises to modernize their brand and thereby appeal to a larger pool of potential buyers, as well as de-velop the analytical ability to identify and adapt to dynamic global trends.

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[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / PRECIOUS STONES AND JEWELLERY SECTOR 2018-2022 ]

Figure 1 captures the vision and strategic objectives of the precious stones and jewellery sector.

Figure 1 : Theory of change

Establisha strong Afghan brand for precious stones and jewellery

Unlock financial resources and

support through the Government

Upgrade technology and

train human capital

Upgrade technology and

train human capital

Increase absolute volumes while

improving quality levels

ConnectCompete

VISION

‘Precious stones and jewellery: revealing Afghan beauty to

international markets’

1. Increase productive capacity while supporting diversification

and entrepreneurship

3. Create an Afghan precious stones and jewellery brand

2. Improve the regulatory framework and infrastructure

support

A gem in the Afghan economy not yet able to unfold its full potential to integrate women, youth and people in rural areas through modernization and technological development in mining and processing

• Increased precious stones and jewellery production in terms of volume and value• Diversified product variety and target markets• Afghan precious stones and jewellery established as a unique, handmade product with a lasting brand in international markets • Increased inclusion of women, youth and people in rural areas, and socioeconomic benefits spread to actors across the value chain

IMPA

CTST

RATE

GIC

OBJE

CTIV

ESST

RATE

GIC

THRU

STS

SITU

ATIO

N AN

ALYS

ISIM

PACT

• Limited access to finance and governmental support schemes

• Scarce critical inputs • Weak awareness of quality

management and certifica-tion

• Insufficient availability of trained workers and knowledge

• High production costs

Change

• Limited connectivity to international markets

• Insufficient in-market support

• Limited branding and promotion of Afghan products

• Poor logistics and trade-related infrastructure

• Limited capacity to upgrade the value and quality of production

• Poor managerial skills and lack of institutional support fostering innovation

• Restricted sector expansion resulting from operational obstacles

[ PRECIOUS STONES AND JEWELLERY : A BRILLIANT OUTLOOK AT THE GLOBAL LEVEL ]

3

PRECIOUS STONES AND JEWELLERY : A BRILLIANT OUTLOOK AT THE GLOBAL LEVEL

Throughout history, human beings around the world have desired precious stones, attracted by their beauty and luminosity. These physical characteristics come from dif-ferent minerals being subjected to varying environmental conditions, such as soil, pressure and heat. Colombia, for instance, is the biggest producer of emeralds, contributing 75 % to 90 % of the world’s supply. Sri Lanka is known for more than 50 varieties of gems, ranging from sapphires to rubies. In Africa, Madagascar is responsible for almost 50 % of the world’s total production of sapphires. Botswana is one of the most important sources of diamonds. Approximately 90 % of the world’s opals come from Australia.

While the above countries, among others, are known as the best sources for various precious stones, the largest exporters of precious stones and jewellery are Switzerland, Hong Kong ( China ), the United States of America, India, the United Arab Emirates ( UAE ) and the United Kingdom of Great Britain and Northern Ireland.1 Many countries without precious stone resources are among the world’s largest ex-porters ; their advanced technology, expertise and long his-tory of processing has allowed them to capture enormous profits through value addition.

Exports of precious stones and jewellery experienced a slowdown in growth after the 2008 financial crisis. The sector returned to stable growth in 2013, led by growing demand from rapidly developing emerging markets. After 2013, falling gold prices hurt export totals, as gold products account for more than half of the sector’s value. The sec-tor experienced a decline until exports stabilized at around US $ 630 billion in 2015.

1.– Based on HS71.

Figure 2 : World exports in the precious stones and jewellery sector, 2005–2016 ( US $ billions )

-

100

200

300

400

500

600

700

800

900

1.000

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Source : Trade Map ( 2017 ).

Figure 3 : Top 10 exporters in the precious stones and jewellery sector ( US $ billions )

- 10 20 30 40 50 60 70 80 90

100

Switzerla

nd

Hong K

ong (

China)

United

States

India

UAE

United

King

dom

China

Belgium

Canada

Israel


Photo: ITC

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Figure 4 : Trade balance, top 10 importers of precious stones and jewellery, 2016 ( US $ billions )

-150

-100

-50

0

50

100

150

Switzerland China UnitedKingdom

Hong Kong,China

United Statesof America

United ArabEmirates

India Belgium Germany Singapore

Imported value in 2016 Exported value in 2016 Trade balance


In this section, the following top importers and re-export-ers in the sector will be analysed in detail. They include Switzerland, Hong Kong ( China ) and mainland China, the United States, the United Kingdom, India and the UAE.

SWITZERLAND

Switzerland is the largest exporter in the sector, with an ex-ported value of US $ 98.5 billion in 2016. The country sup-plies clients in the United Kingdom, China, Hong Kong ( China ), India, the United States and France. Diamonds, rubies and other precious stones in worked form ( pol-ished and cut but not set in accessories ) contribute to Switzerland’s world-leading export basket. With advanced cutting, polishing and trimming technologies, the country exports semi-processed and processed precious materials to worldwide markets based on market ties and trust estab-lished over many years. The majority of these materials are

not sourced domestically. The country instead imports them from worldwide markets to re-export after value addition.

Because Switzerland lacks mineral resources but has world-leading technology, it is also the greatest importer of precious stones and jewellery, recording imports worth $100 billion in 2016. The main suppliers are the UAE, United Kingdom, United States, Hong Kong ( China ), France and Thailand. The main import goods are raw and semi-pro-cessed precious metals and stones that undergo various forms of value addition. At the same time, Switzerland is an attractive market for the sector, with high consumer demand for luxury goods.

Box 1 : Switzerland

Switzerland as a consumer market

The Swiss precious stones and jewellery sector has a high-quality brand image. The price bracket, therefore, lies between mid-price and premium. When it comes to fine jewellery, silver products are preferred over gold. As gold and platinum are generally too expensive for the average consumer, demand has shifted to more affordable metals. Modern and contemporary designs are popular with younger consumers. Diamonds are usually regarded as out of most consumers’ budgets except for special occasions, such

as engagements. More affordable non-diamond jewellery enjoys high popularity in Switzerland. Jewellery as part of the fast fashion scene is increasingly popular. Many consumers buy affordable jewellery to complement their outfits and to highlight the wearer’s personality and individuality. Jewellery consumption for fashion purposes translates to high frequency of buying and selling items. Products made of trendy but low-cost materials – such as leather, plastic, silver, ceramic and zircon – find a large market in Switzerland, especially among younger consumers.*

* Euromonitor International (2017). Jewellery in Switzerland. Available from www.euromonitor.com/.


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HONG KONG ( CHINA ) AND MAINLAND CHINA

Hong Kong ( China ) and mainland China are important ex-porters of precious stones and jewellery, with export totals in 2016 of US $ 84 billion and US $ 22 billion respectively. Hong Kong ( China ) is a rapidly growing exporter to China ; Switzerland ; India ; Thailand ; and the United Kingdom, United States and UAE. Hong Kong ( China )’s export bas-ket consists of gold, diamonds and other precious stones, and jewellery. China has shown remarkable growth, from less than US $ 7 billion in exports in 2006 to US $ 22 billion in 2016. China’s major export destinations are Hong Kong ( China ), the United States, Belgium and the UAE.

With imported values of US $ 79 billion and US $ 67 bil-lion respectively, China and Hong Kong ( China ) are two of the most important import markets for the sector. In 2016, China’s top supplier was Switzerland, followed by South Africa, Hong Kong ( China ), Australia, the United States and India. The Chinese import basket includes gold, platinum, diamonds and other semi-precious stones, and precious materials in raw and semi-processed forms. Hong Kong ( China ) imports precious metals and stones for further processing predominantly from India, Switzerland, China, Australia and South Africa. Both China and Hong Kong ( China ) are major purchasers from Switzerland of high-quality cut and trimmed precious stones processed using advanced technology.

While Hong Kong ( China )’s imports in the sector are bal-anced by its exports, in 2016 China had a negative trade balance of $58 billion. This indicates that China is more of a consumer market, whereas Hong Kong ( China ) would be classified as a re-exporting hub for the Asian market. Hong

Kong ( China )’s greatest export destination is the Chinese market, where processed products reach a growing number of high-income, luxury-focused consumers.

Box 2 : Hong Kong ( China ) and China

Hong Kong ( China ) and China as a consumer market

Chinese demand for fine jewellery is growing fast, driven by China’s rapid economic growth. With rising consumer incomes, jewellery is no longer an unaffordable luxury and has become a part of daily fashion considerations. Not only are luxury brands becoming more recognized and finding a growing consumer market, but more affordable jewellery is gaining popularity among millennials. At the same time that fast fashion is demanding cheaper products, high-end diamond jewellery has also gained popularity among millennials. Rings are the most popular type of fine jewellery. The main distribution channel for jewellery in China

remains watch and jewellery special retailers, but e-commerce retailing is emerging.

Fine jewellery is also the most popular segment of the sector in Hong Kong ( China ), where gold products – worn as part of traditions and festivals – remain highly popular. Gold jewellery contributed to more than 50 % of sales in Hong Kong ( China )’s domestic market. Earrings remained the most popular type of costume jewellery in Hong Kong ( China ), due to the ease of pair-ing them with different outfits and their relative affordability. As in China, specialist retailers are the main distribution channel in Hong Kong ( China ), with online sales on the rise.*

* Euromonitor International (2017). Jewellery in China. Available from www.euromonitor.com/.

Photo: ITC

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UNITED STATES

Some of the world’s most renowned diamond mining and processing companies are American-owned. As a re-sult, the United States is one of the largest exporters of diamonds. Other export products include jewellery made of precious stones and metals. The main export desti-nations are re-exporters such as Switzerland and Hong Kong ( China ), as well as India, the United Kingdom, Israel, Canada and Belgium.

As with Switzerland, the United States is known not only as a world exporter of precious stones and jewellery ( US $ 57 billion in exports in 2016 ) but also as a world importer, with imports valued at US $ 65 billion in 2016. India, Israel, Canada, Mexico, Switzerland and Belgium were the main suppliers to the United States market. The United States imports raw and semi-precious stones for further process-ing from developing countries, and also imports finished jewellery from worldwide suppliers. In 2016, the principal im-ported item was semi-processed diamonds, predominantly from India and Israel, which make up more than 35 % of the import basket.

The United States had a negative sector trade balance for precious stones and jewellery of US $ 8 billion in 2016, indicating that imports dominate exports. The United States can be seen as a hybrid consumer and re-exporter of pre-cious stones and jewellery. The country uses advanced technology for further value addition, manufacturing many jewellery brands that supply world markets. At the same time, it is also a major consumer market.

Box 3 : United States

The United States as a consumer market

In a market where consumers are spending more money on experi-ences than goods, the United States precious stones and jewellery sector is declining slightly. Younger consumers interested in fast fashion are showing less interest in jewellery as accessories become less necessary for outfits geared to casual and active lifestyles. The new generation prefers to spend money on mobile phones and other tech items rather than luxury jewellery.A clear trend in distribution is the shift in market share from traditional specialized retailers to online sales platforms. With the rise of e-commerce and the emergence of fast fashion retail-ers in the United States, traditional brick-and-mortar jewellery

retailers are finding it more and more difficult to maintain their businesses. Consumers prefer to shop at fast fashion brand stores where they are able to purchase a complete outfit, including ac-cessories, all at once. Consequently, the growth of fast fashion retailers also supplying jewellery has become a major threat to traditional costume jewellery retailers. United States-made products face fierce competition from cheaper foreign brands. In terms of consumer preferences, gold jewellery outsells silver products, while earrings, necklaces and bracelets are the most popular products in the United States market. The most desirable items are fashionable, affordable and long-lasting jewellery that can be purchased on impulse.*

* Euromonitor International (2017). Jewellery in the USA. Available from www.euromonitor.com/.

Photo: ITC


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UNITED KINGDOM

The United Kingdom exported US $ 29 billion of precious stones and jewellery in 2016. The main export destinations were Switzerland, Hong Kong ( China ), the United States, China, Belgium and Germany. Gold dominated the British export basket, followed by worked jewellery, platinum and diamonds. The importance of gold has led to a remarkable export decline since 2013, caused by falling gold prices. While exports stood at nearly US $ 100 billion in 2013, United Kingdom exports in the sector have declined more than a third since then. Many export products are semi-processed and processed precious stone and jewellery items manu-factured using advanced British technology.

With an import value of US $ 71 billion in 2016, the United Kingdom is also one of the largest importers in the sec-tor. The United Kingdom predominantly imported from Switzerland, Canada, South Africa, Hong Kong ( China ), the United States and Australia. The United Kingdom’s import basket consists of precious stones and metals as well as worked products.

With a trade deficit of US $ 42 billion in the sector, imports dominate exports. As a result, the United Kingdom is best viewed as a consumer market rather than a re-exporter of precious stones and jewellery. The United Kingdom imports raw and semi-worked materials for further processing, and following value addition, the finished jewellery products are primarily sold domestically.

Box 4 : United Kingdom

The United Kingdom as a consumer market

Gold is the most popular material for fine jewellery, with a 44 % share of the United Kingdom market. The most popular articles are rings, accounting for 43 % of fine jewellery sales in 2017. They are purchased primarily for weddings and engagements. United Kingdom consumers are willing to spend more on rings because they are meant to last a lifetime. Earrings and necklaces are the most important types of costume jewellery. These articles are most popular as fashion accessories complementing the outfits

of the fast fashion industry. The border between fine jewellery and costume jewellery is continuing to blur ; consumers who typically purchase fine jewellery for a special occasion or as a gift are increasingly buying fine jewellery for themselves. With the trend of mixing high- and low-priced jewellery, both types of jewellery have started to attract a wider range of customers. When it comes to distribution, online sales are increasing. Online shopping is especially suited to costume jewellery, which sells at lower prices and thus carries a lower purchasing risk. Fine jewelelry is still pur-chased primarily in specialized brick-and-mortar retail outlets.*

* Euromonitor International (2017). Jewellery in the UK. Available from www.euromonitor.com/.

INDIA

With US $ 42 billion in exports in 2016, India has established itself as the largest Asian exporter of precious stones and jewellery after the Chinese. India is the world’s most com-petitive producer of polished stones. Its exports have not been affected by the decline in gold prices as much as other countries’. India has strong ties to Asian markets as well as the UAE, which was the largest export destination for India in 2016. India produces some precious and semi-precious stone varieties. The Indian export basket consists of dia-monds, jewellery, gold articles, and other precious metals and stones. India has a long history of jewellery production using its own technology and traditional designs.

While the country exports raw materials as well as pro-cessed jewellery, India is also a growing consumer mar-ket for precious stones and jewellery products. The trade balance showed a comparatively small deficit of US $ 6 bil-lion in 2016. India’s precious stones and jewellery sector imported US $ 48 million in 2016. The main exporters to the Indian market were Switzerland, the UAE, Belgium, Hong Kong ( China ) and the Russian Federation. The main import goods were raw or semi-worked precious stones and met-als for jewellery production. Resources are also supplied domestically ; however, many precious metals and some varieties of semi-precious and precious stones cannot be found in the country.

8


Box 5 : India

India as a consumer market

Indian consumer preferences have shifted in favour of interna-tional jewellery brands. As a result, many well-known brands have opened branches in major Indian cities. Trends in design have shifted from bulky, traditional jewellery to more lightweight products for everyday use. A major factor influencing this trend is the increasing number of Indian working women who want jewellery appropriate for everyday and business wear. While growth in consumption has slowed recently, India has experi-enced continuous growth in sales over the last several years, as

a result of the country’s remarkable economic growth. Although fine jewellery far outsold costume jewellery, sales of the latter have picked up pace. The most popular type of costume jewel-lery in India remains bracelets, with neckwear and other forms of wristwear also high-selling product categories. Jewellery and watch specialty retailers remain the most common retail channel, as the majority of jewellery retailers throughout the country are small-scale. Family-owned local retailers enjoy the loyalty of their customers, although online shopping is becoming more popular among young professionals.*

* Euromonitor International (2017). Jewellery in India. Available from www.euromonitor.com/.

UNITED ARAB EMIRATES

The UAE is a fast-growing exporter of precious stones and jewellery, with exports valued at US $ 35 billion in 2016. The UAE has close trade relationships with Middle Eastern coun-tries, although its largest export destination for sector prod-ucts is Switzerland, followed by India, Turkey and Belgium. Different unprocessed and semi-processed stones, as well as gold and silver products, make up the majority of the UAE’s sector export basket.

India, Hong Kong ( China ), Turkey, Belgium, Switzerland, the United States and Egypt were the main suppliers of pre-cious stones and jewellery to the UAE, with imports total-ling US $ 38 billion in 2016. As with other countries heavily involved in this sector, the UAE has been affected by gold

price declines since 2013. However, the Emirati market has since stabilized as a result of rapid economic growth. The UAE mainly imports worked jewellery made of precious met-als, and raw to semi-processed precious stones and metals.

The sector trade deficit for the UAE stood at US $ 2 billion in 2017, which indicates a relative balance of sector imports and exports. A large portion of imported goods are intend-ed for domestic buyers, while the UAE’s main exports are raw materials extracted in the country. Domestic demand is growing because of the UAE’s booming economic growth in recent years. At the same time, the country is benefiting from its resource-rich environment, allowing the UAE brand to become established in international markets.

Box 6 : United Arab Emirates

The UAE as a consumer market

Many global brands have entered the UAE market recently, creating stronger competition in the Emirati precious stones and jewellery sector. Sales of jewellery are predominantly seasonal and event-centric. For instance, demand for gold jewellery increases around religious festivals like Diwali and Akshaya Tritiya because of the

large Indian population. Shopping festivals like Dubai Summer Surprises and the Dubai Shopping Festival also boost sales. Many luxury costume jewellery brands have experienced fast retail sales growth as Emirati consumers have become increasingly attracted to international brands and more aware of fashion trends. Jewellery and watch specialty retailers tend to dominate the distribution of fine jewellery, despite increasing online sales.*

* Euromonitor International (2017). Jewellery in the United Arab Emirates. Available from www.euromonitor.com/.

[ AN OVERVIEW OF PRECIOUS STONES AND JEWELLERY IN AFGHANISTAN ]

9

AN OVERVIEW OF PRECIOUS STONES AND JEWELLERY IN AFGHANISTAN

Notable deposits of gemstones in Afghanistan can be found in north-eastern provinces such as Badakhshan, Nuristan, Panjshir, Kunar and Laghman, with several known depos-its in Kabul Province as well. There are four primary gem-stone producing areas : the Panjshir Valley ( emeralds ), the Jegdalek region ( rubies and blue sapphires ), Badakhshan ( lapis lazuli ) and Nuristan ( tourmaline, kunzite, aquamarine, spodumene and beryl ).2

2.– Afghanistan, Ministry of Mines and British Geological Survey ( 2007 ). Minerals in Afghanistan – Gemstones of Afghanistan. Available from www.bgs.ac.uk/afghanminerals/docs/gemstones_a4.pdf.

According to one case study, jewellery making in Afghanistan takes place in small workshops, with skills passed down from master to apprentice. Only in the past 10 years have there been efforts to provide formal education in traditional jewellery artisanship, with the British non-profit Turquoise Mountain a prominent example of an institution serving this purpose. Most jewellery producers are fo-cused on satisfying local demand, although small-scale exports of Afghan jewellery are taking place to such des-tination markets as China, Pakistan, India, Europe and the United States.

KEY CURRENT PRODUCTION STATISTICS

Afghan small-scale artisans produce handmade jewellery with minimum use of machines to cut and polish stones and fix them within a metal framework, which is made by hand with traditional tools. Stones are categorized as precious or semi-precious as delineated in box 7. Current production figures are unavailable but before the civil war it is said that

only emerald production used to be between US $ 8 and US $ 10 million.3 Gold and silver are considered precious metals, while bronze and gelite4 are semi-precious.

3.– Ibid.4.– Opal or chalcedony

Box 7 : Varieties of raw materials

Precious stones Semi-precious stones Metals

Emerald Sapphire Gold

Ruby Amethyst Silver

Spinel Aquamarine Bronze

Turquoise Kunzite Gelite

Garnet

Peridot

Tourmaline

Lapis lazuli

Topaz

Carnelian

Fluorite

http://www.bgs.ac.uk/afghanminerals/docs/gemstones_a4.pdf


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There are 3,000 handicraft shops in Chicken Street in Kabul but disaggregated data is not available. According to the da-tabase of the Afghanistan Women Chamber of Commerce and Industry ( AWCCI ), there are around 20 women-owned or -run jewellery and gemstone retailers in Kabul, Mazar-e-Sharif, Herat and Bamyan. Production capacity and num-bers are not available.

SOCIOECONOMIC IMPACT

The Kabul jewellery production sector is still developing. Workshops are willing to take orders at low per-piece mini-mums ( 20–50 pieces per style ) in order to prove them-selves, grow their businesses and establish Afghanistan as a competitor in jewellery production.5 Overall data – such as the number of producers, retailers and skilled / unskilled workers – is not available, nor is it available for women’s participation. Women are active both as owners and pro-ducers in the last two stages of the value chain : production and selling.

Jewellery making is a core artisanal skill that presents im-mense opportunity for job creation and niche sector growth in Afghanistan. Kabul workshops can meet international

5.– McColm & Company ( 2015 ). Case study : Accelerating value chain development in Afghanistan’s gemstone jewelry sector. Available from www.mccolmandco.com/insights/-accelerating-quality-jewelry-production-in-kabul.

demand for small jewellery manufacturing orders. The chal-lenge for sector producers has been fulfilling large orders while maintaining consistency in quality.6

Skills exist in small jewellery manufacturing, with most workers trained in a traditional manner. One non-government organization, Turquoise Mountain, and one Government institution, a vocational training centre man-aged by the Ministry of Labour, Social Affairs, Martyrs and Disabled ( MoLSAMD ), exist and can be further developed. On the other hand, the skills of workers in the first stage of the value chain – mining – remain extremely underdeveloped.

6.– McColm & Company ( 2015 ). Case study : Accelerating value chain development in Afghanistan’s gemstone jewelry sector. Available from www.mccolmandco.com/insights/-accelerating-quality-jewelry-production-in-kabul

AFGHANISTAN’S EXPORT PERFORMANCE

The Central Statistics Office Year Book provides data on export and import commodities derived from Afghan Customs data. Official Afghan statistics lack export data ( direct data ) relevant to the sector, except for the years 2014–2015, 2015–2016, and 2016–2017, which contain an added item under the label ‘Handicraft’ under export com-modities. However, there is no data disaggregation on the type of handicraft. With this noted, handicraft exports have decreased since 2014, from around US $ 1 million in 2014 to US $ 350,000 in 2015, and then another decline resulting in a mere US $ 42,000 in recorded exports in 2016.7

The World Bank 2004 report Transitional Islamic State of Afghanistan : Mining as a Source of Growth includes the following quote from the Ministry of Mines and Petroleum ( MoMP ) :

Afghanistan has made around US $ 2.75 million worth of exports of stones. Afghanistan does not receive much

7.– Afghanistan, Central Statistics Organization ( 2017 ). Year Book 1395 ( 2016–2017 ).

revenue from the export of its gemstones, as they are ex-ported to Pakistan uncut. Pakistan cuts and processes them for use in jewellery. The high-quality stones are exported from there to other countries and the low quality is used in Pakistan production.

Due to lack of Afghan export data, the following analysis is based on reported data from export destinations ( mirror data ). Historically, the Afghan precious stones and jewel-lery industry is recognized for its fine handicraft tradition, both among domestic buyers and on international markets. Export figures fluctuated between US $ 1 million and US $ 5 million per year until 2011, when, with recognition of Afghan products in major importing markets, the Afghan precious stones and jewellery sector reached an export value of US $ 184 million in 2012 ( see figure 5 ). Because of unreli-able reporting and cross-border smuggling, Afghan figures might be biased. Nevertheless, the greater reach of Afghan products, as well as increasing export volume, indicate sig-nificant growth and visibility of the sector.

Photo: ITC

http://www.mccolmandco.com/insights/-accelerating-quality-jewelry-production-in-kabul





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Afghanistan’s precious stones and jewellery sector not only experienced impressive growth in exported value ( 18-fold increase in the 10 years since 2005 ) but also in export des-tinations. The country exported to just 10 countries in 2005. New Zealand was the largest importer of Afghan goods in the sector in 2005, with US $ 1 million in imports. Ten years later, Afghan precious stones and jewellery reached 21 countries all over the world. The top export destination was the United States, with almost US $ 8 million in export value, followed by the UAE, with an export value of US $ 7 million. France and China also imported more than US $ 1 million from the Afghan precious stones and jewellery sector in 2015.

Afghanistan has a long export relationship with the United States. It has gradually increased its traded volume by gaining market recognition and trust. Similarly, France, Germany and China had only a small volume of trade with the Afghan sector in 2005 but have recently increased their traded volume. The UAE is a newly accessed market with great promise. Its growing demand for precious stones and jewellery is the result of remarkable economic growth. Switzerland is another recently accessed export destination, significantly increasing its traded value since 2012. Although traded volume is still low, many other countries – such as the United Kingdom, Japan, Australia, Canada and Italy – have recently started to establish trade relations with the Afghan precious stones and jewellery sector. Based on the experi-ence with other countries where export ties were established a decade earlier, these newly accessed markets have the potential to become stable and growing importers within a few years.

Figure 5 : Afghanistan’s exports of precious stones and jewellery, 2005–2016 ( US $ millions )

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20

40

60

80

100

120

140

160

180

200

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


Photo: ITC

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Figure 6 : Afghanistan’s top export destinations for precious stones and jewellery, 2005 ( US $ thousands )

0

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United

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Germany

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Guatem

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Figure 7 : Afghanistan’s top export destinations for precious stones and jewellery, 2015 ( US $ thousands )

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United

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China

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Major exported goods of Afghanistan’s precious stones and jewelley sector in 2016 were precious metals and stones in raw and semi-manufactured form. There is no quanti-tative data available from previous years for comparison. As the home of many precious stone and metal mines, Afghanistan serves world markets with its rare, indigenous varieties. Processed and traditional imitation jewellery have only a small share in Afghanistan’s export basket in this

sector. Greater visibility of Afghan handicrafts in world mar-kets would stimulate the Afghan jewellery industry, which employs many women and young Afghans. The majority of precious stones entered markets in France, the United States, Switzerland and Germany for further processing. Switzerland and the UAE were major Afghan gold importers. Processed jewellery is known only in the United States and a few European markets through Afghan diaspora networks.

Figure 8 : Afghanistan’s exported precious stones and jewellery, 2016

Gold (semi-manufactured

forms)43%Rubies, sapphires

and emeralds (worked)

38%

Stones (unworked or simply sawn)

14%

Stones (worked)5%

Imitation jewellery (metal)0% Others

0%

Exported goods, 2016 (total US$ 35.6 million)



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VALUE CHAIN ANALYSIS

INPUT SUPPLY

In Afghanistan, gemstones are mined in a traditional way using explosives and other primitive methods that destroy the gems’ quality and quantity. The mines are often con-trolled by local warlords, with the labour force consisting of villagers who live close to the mines. The Government has minimal control over these mines and has not been able to implement recent laws. Raw stones are typically trans-ported to cities that are known for trade in particular types of gems and precious stones ; for example, lapis lazuli is transported to Badakhshan and rubies to Kandahar. Some are transported to Kabul’s Kocha-e-Murgha ( ‘Chicken Street’ in Persian ), a famous area for handicrafts and antique shops where gemstone processing and jewellery making often takes place in out-of-sight workshops.

The largest share of gemstones are smuggled into Pakistan. Pakistani producers then cut and polish the stones and sell them to their own jewellery producers or to Afghan jewellery producers. For Afghan miners, smuggling precious stones to Pakistan is the best way to avoid paying royalty fees to the Afghan Government ( which currently stand at 17 % of estimated stone value ) or being asked to formally register a mining operation and comply with mining and tax laws.

The most popular metals are silver matched with semi-precious stones, and gold matched with precious stones. The majority of producers buy the metals from the Kabul markets, which obtain them from India, Pakistan, the Islamic Republic of Iran and the Middle East ( most gold comes from this region ). Afghanistan has a gold deposit in Badakhshan, estimated to hold 2,698 kilograms according to MoMP. According to sector producers, a processing out-let in Badakhshan used to supply gold chips to Kabul but this facility is now closed because of security issues.

The most popular precious stones are emeralds, sap-phires, rubies and spinels. The gemstones used in Afghan jewellery are lapis lazuli, kunzite and tourmaline. In each major urban centre of Afghanistan, jewellery collectors go door-to-door and purchase old pieces of jewellery, which are then sent to Kabul. Craftsmen in Kabul either rework them for sale or disassemble them and use the materials to make new jewellery.

PRODUCTION

Small workshops that employ 1–20 workers buy smaller refined gemstones to produce traditional and non-tradi-tional jewellery in Kabul and some other major cities, such as Balkh, Herat and Kandahar. Workshops and jewellery

making skills are passed down from generation to genera-tion, and many of these workshops have operated for over 50 years ( or longer ).

At the production stage for jewellery, one of the criti-cal raw materials is metal. Metals such as silver, bronze, gold, copper and gilet ( a non-precious metal like brass ) are used for jewellery making. Silver is the most-used metal in general, while gilet is commonly used for non-precious and inexpensive jewellery. Some workshops have traditional gemstone and metal-cutting machines and do half of the work by hand ; others have more modern cutting, melting and moulding machines and do less than half of the work by hand. Challenges at the production stage include find-ing and training skilled workers, sourcing raw materials and dealing with inadequate machinery and erratic ( or non-ex-istent ) electricity.

The list below summarizes some of the key challenges for the sector :

� Lack of institutional training : Most workers learn their skills in workshops as apprentices. Few formal training centres exist.

� Difficulty sourcing raw materials : Maintaining a consist-ent supply can be a problem at times, although the re-sponses of interviewees showed that they can now more easily source them locally. One interviewee mentioned Tajikistan and one mentioned that they used to source materials from Pakistan but not anymore.

� Lack of advanced machinery : Some companies inter-viewed mentioned that they outsource the cutting of stones or the making of parts such as rings because they do not have proper tools and machinery to make them in standard sizes.

� Deficient power infrastructure : Electricity supply is erratic ( especially during the winter ) and many rural areas do not have access to the national power grid.

� Transportation : Shipping products to buyers in overseas markets can be difficult.

Photo: ITC

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PROCESSING

For bespoke jewellery orders, the process starts with select-ing the design and materials, such the type of metal and stones. Once the design, materials and quantity are deter-mined, the customer checks the quality of the stones. Then the moulding of the metal and cutting of the stones takes place. Metal is moulded for rings, earrings, bracelets and necklaces, and then the stone is fitted. Usually about half the work is done by machine and the rest, such as carving and designing in a traditional way, takes place by hand. For general retail sales, the artisan will create new designs, copy old jewellery or look for inspiration on the Internet. Then the same process as above is followed.

DISTRIBUTION

The last stage of the value chain is distribution. Small work-shops are also retailers and even the wholesale orders they get are not for large amounts. Jewellery sales in Kabul main-ly take place on Chicken Street. Herat, Mazar-e-Sharif and Kandahar also have well-known hubs for handmade jewel-lery. Regarding exports from Afghanistan, a smaller volume is sold to India, the United States and Tajikistan. Afghan gemstones are also sold in Dubai. In the majority of cases, Afghan jewellery is exported in retail-ready form.

The most popular metal / gemstone combinations are silver with lapis lazuli, kunzite or tourmaline. For precious stones, the combinations are white gold with emerald, ruby and spinel. Afghan traditional designs are highly valued by international consumers. One recent trend is to redesign or modify traditional designs with the help of international designers. This option is not available to all jewellery mak-ers but only to the few who are connected to the Turquoise Mountain Institute.

Photo: ITC


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Figure 9 : Current value chain

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POLISHING THE KNOWLEDGE OF KEY COMPETITIVENESS CONSTRAINTS

Key issues constraining the sector’s ability to com-pete / connect / change

The following section analyses sector challenges across three levels – firm compatibilities ; institutional and trade support ; and national environment, policy and regula-tions. For this analysis, the issues that are crucial for the competitiveness of Afghan exports can be sorted into three dimensions.

Compete : Issues limiting the sector’s capacity to com-pete in national and foreign markets. This includes chal-lenges related to access, inputs, productivity, quality management and complying with standards, and na-tional infrastructure.

Connect : Issues restraining connectivity to suppliers, markets and clients. This dimension includes challeng-es related to market information, marketing and trade promotion, branding and trade agreements.

Change : Issues limiting the sector’s capacity to change, innovate and tap into emerging trends. This dimension relates to challenges to access trained / skilled labour, intellectual property, pre-production, institutional sup-port to innovate, investment promotion and protection, corporate social responsibility, and youth / women’s employment.

COMPETE

Limited access to finance to purchase machinery and inputs degrades the competitiveness of the sector

Difficult access to financial resources for sector enterprises limits the availability of adequate technology and machinery for the mining and processing of precious stones and jewel-lery. Financing is a particular burden for Afghan women, as they rarely hold titles to land, which is a requirement for loan collateral. Most machines and tools needed to quarry and process precious stones and jewellery are expensive. There are no ways to access machinery other than purchasing, since lease or rental of machinery and tools does not exist in Afghanistan. Most modern machinery is imported from foreign countries, which further increases costs.

Restricted access to finance also inhibits input supply. In the case of larger orders, producers are not able to pur-chase enough input materials to supply customers. Because repayment periods are very short, many producers are not able to fill orders despite demand. In addition, many input materials are smuggled to Pakistan for processing and then re-exported back to Afghanistan.

Expanding sector enterprises is difficult to fund, as loans from commercial banks in Afghanistan are very ex-pensive. Interest rates tend to fall between 12 % and 25 %, with required collateral ranging from 100 % to 200 % of the value of the loan. Very few producers have the collateral

to apply for loans under these circumstances, which makes precious stone and jewellery producers dependent on sup-port from third parties. The result is that only participants with initial funding sources ( usually networks of family and friends ) can enter the market.

Value chain segment All segments

Severity ● ● ● ● ●

PoA reference Activities 1.3.1., 1.3.2.

Inconsistent supply of critical inputs hinders productivityThe limited availability of necessary equipment and machin-ery hinders productivity. Many producers use simple tools such as hammers to shape metal rather than modern ma-chines. Some producers of items such as rings and bangles do not even have access to basic equipment to measure sizes in order to align with international sizes and standards. Because moulding and melting machines are rare, outdated methods are used, making production inefficient.

Value chain segment Inputs / production

Severity ● ● ● ● ○

PoA reference Activities 1.4.1. to 1.4.3.


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Weak awareness of quality management and cer tification creates difficulties for Afghan precious stones and jewellery when competing on international markets

Current substandard mining and gemstone processing techniques limit the ability of sector enterprises to compete in international markets. Mining of precious materials is not adequately regulated ; as a result, unethical practices and unsafe workplace conditions are common in Afghan mines. At the enterprise level, there is a lack of understanding and implementation of quality management, as well as a lack of awareness of international certifications across the value chain.

At the input level, the use of lower-quality materials re-sults from frequent imports of uncertified Pakistani inputs and lack of access to market information on quality pre-miums. There are no effective measures to prevent smug-gling to and from Pakistan. Low awareness of and limited access to quality certification leads to a failure of sector products to align with international standards. According to the International School of Gemology, the Afghan precious stones and jewellery sector has been overwhelmed with fake stones and metals. Because of limited quality control, fake and real precious stones and jewellery cannot be dis-tinguished in the domestic and international end-consumer markets. A specialized lab for quality control, testing and certification is needed to enforce standards and thereby re-habilitate the reputation of the sector.

Moreover, poor on-site quality control results in frequent mixing of similar stone varieties, leading to uncertainties about the quality, size and grade of Afghan products. There are also variations in quality among Afghan regions, due to lack of standardized national control procedures. A par-ticular problem is the uncontrolled and uncertified recycled materials sourced by input collectors. Such materials lower the quality of the end products.

Limited quality management has already limited the ability of sector enterprises to enter developed markets. Awareness of international standards among producers is constrained by the limited availability and quality of certifying institutions. Investment in quality control infrastructure and awareness-raising campaigns is critical to establish Afghan precious stones and jewellery in international markets.



PoA reference 2.5.1. to 2.5.9.

Insufficient availability of skilled workers hinders sector competitivenessThe majority of jewellers need more training in new technol-ogy and design creation, as well as greater exposure to de-sign and fashion trends. Miners and processors lack training in the use of modern machinery and equipment. A few years ago, a limited number of women were trained by American volunteers in jewellery design and production. A few produc-ers have accessed training in Jaipur, India. Nevertheless, they lack the ability to develop products and use new tech-nology. Limited access to training and information on new designs means that only a few varieties of jewellery design are being offered and they are of lower quality than those of regional competitors.




High production costs hinder competitiveness in world marketsThe sector’s competitiveness is constrained by high pro-duction costs throughout the value chain. Limited access to electricity necessitates the use of generators, making operating machinery more expensive. Outdated produc-tion methods keep Afghan production costs above regional levels. The use of old machinery leads to higher electricity costs and inefficiencies in mining and processing of stones for jewellery products.

The dominance of handmade, traditional production can add value to Afghan products but it also adds costs com-pared with competitors using machinery. Therefore, whether or not to rely on handmade production methods is a trade-off between value addition through handmade uniqueness and additional costs throughout the production process. In addition, Afghan workers’ wages are higher than those of their Pakistani counterparts, despite the fact that Pakistani workers are more skilled. Pakistani products cost less due to greater access to modern techniques, a stable electricity supply and lower wages.

Other problems in Afghanistan include the lack of secu-rity and access to transportation infrastructure. For these reasons, operations are not systematic and delays occur throughout the value chain. Such delays and security issues translate into additional costs for the whole sector, lowering the competitiveness of Afghan products.




18


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CONNECTComplicated expor t permit systems hinder smooth trading of precious stones and jewellery products

Ambiguous rules, procedures and forms needed to obtain export permits hinder smooth transactions in international markets. Forms containing unfamiliar terminology are usual-ly too complicated for ordinary Afghans with little, if any, sec-ondary education. Support during the application process is insufficient, due to the lack of trained Customs staff in ports and airports. Lack of coordination among different ministries involved in Customs operations – including the Ministry of Industry and Commerce ( MoIC ), Ministry of Finance ( MoF ) and MoMP – complicates exporter applications for trading permits. Applicants for trading licences need to reach out to multiple organizations for clearance, making the process unnecessarily complicated and time-consuming.

Value chain segment Marketing / distribution


PoA reference Activity 2.4.2., 2.3.3., 2.3.4.

The ability of Afghan enterprises to connect directly to international buyers and maintain relationships is inhibited by weak institutional support and market intelligence

Not enough work has been done on developing and main-taining contacts with international buyers. Nor are there any bilateral agreements related to the precious stones and jewellery sector between Afghanistan and target markets. Given that a significant quantity of Afghan precious stones and jewellery is exported under a foreign label, it is crucial for Afghan exporters to introduce their products directly to global markets.

The sector also lacks market intelligence regarding fash-ion trends and consumer preferences in target markets. Such information would make sector stakeholders more respon-sive to buyer requirements and help exporters and producers make informed production decisions. More efforts are need-ed to disseminate market information through sector associa-tions. A working e-payment system for online sales is also needed ; currently Afghan traders ( in all sectors ) cannot re-ceive credit or debit card payments from international buyers.

Many exporters in the precious stones and jewellery sec-tor complain about not receiving any kind of support from the Government or international community to help them maintain trade relationships and access new markets. The number of commercial attachés is limited, and existing ones lack the capacity and training to effectively help traders

connect to international businesses. Additional institutional support is needed to assist producers to connect with in-ternational buyers and maintain commercial relationships.



PoA reference Activities 3.1.1., 3.1.2., 3.2.1.

Insufficient in-market support prevents Afghan companies from creating links with international buyers

Sector enterprises struggle to connect with buyers in interna-tional markets, due in part to insufficient in-market support from relevant institutions. Sector enterprises have particular difficulty participating in international exhibitions and fairs and obtaining short-stay visas for business purposes. More pre-exhibition training is needed. There is neither enough participation in exhibitions nor trainings before exhibitions. When such exhibitions and trainings do take place, they are not organized in a systematic way but rather on an ad hoc basis. Furthermore, ministries and sector associations need to provide more information about exhibitions and interna-tional trade fairs.


Severity ● ● ● ○ ○


Limited branding and promotion of products hinders recognition of Afghan precious stones and jewellery products in international markets

Weak marketing skills among sector enterprises constrain the ability of the sector to create brand differentiation through labelling and promotion of Afghan products. Afghanistan is known for high-quality emeralds, rubies and spinels as well as lapis lazuli ; however, many of the stones are smug-gled to Pakistan for further processing and then sold to the end consumer as Pakistani goods. Because of weak Afghan brand recognition, many Afghan products are be-ing confused with Pakistani goods. The majority of jewellery makers and precious stone traders do not have websites, nor do they use digital marketing to promote the Afghan brand. Catalogues and regular sector publications do not exist. Consequently, the Afghan precious stones and jewel-lery sector struggles to build its brand in global markets.



PoA reference 3.4.1. to 3.4.5.

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Figure 11 : Problem tree – connect

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s


21

CHANGEPoor processing knowledge and skills limit the sector’s capacity to upgrade the value and quality of production

There are no concrete data on skilled and unskilled workers in the sector, but the presence of large numbers of unskilled labourers is commonly responsible for irregular and lower-quality products compared with international competitors. Miners of precious stones do not have proper training in ex-tracting stones or distinguishing between varieties. Blasting in mines and application of outdated quarrying methods lowers the quality and market value of extracted stones.

Processors who cut stones into smaller pieces and ex-tract gems from the stone block lack training and have lim-ited access to modern machines and tools. Consequently, stones and metals are cut and polished using outdated methods, which hurts the value of the final product. Using adequate and modern technology would not only enhance productivity but also contribute to environmental sustain-ability. Using explosives in mines and processing stones with outdated methods wastes stones and metals and low-ers quality.

Many workers need skills diversification in order to expand production capacity and variety. Sector growth is hindered by the paucity of institutions helping produc-ers develop new designs and products by applying mod-ern technology. Access to information on new techniques and existing designs is also limited. Some jewellers have received some training from jewellery companies or insti-tutions such as Turquoise Mountain. Currently, training of workers in design and gemstone cutting takes place in India, Turkey, Thailand and Spain. Nevertheless, in an indus-try where the skill of the jeweller is crucial to the quality and design of the piece, further skills development is needed to upgrade the value and quality of products. As the sector employs a number of women, training programmes need to be tailored to women’s needs.

Value chain segment Processing



The ability of sector companies to innovate is constrained by weak managerial skills and limited institutional support

Limited managerial skills constrain entrepreneurial and innovative development of the sector, due to low capac-ity to enhance knowledge and facilitate implementation of new ideas. Decentralized production by small household

producers limits knowledge management and information-sharing between stakeholders. Combined with weak com-munication between producers, this means opportunities for development and implementation of innovative ideas are limited.

Weak institutional support hinders innovation. Many firms complain about not receiving any kind of support from the Government and international community to upgrade pro-duction and sales skills. Very few enterprises have received support to upgrade machinery or train staff in improved pro-duction and managerial skills.



PoA reference Activities 1.1.1., 1.1.2., 2.4.1.

Operational obstacles such as limited access to land and weak infrastructure hinder sector expansion

Access to land is a major challenge in Afghanistan, limiting the development of consolidated production sites such as industrial parks. The Government regulates the leasing and renting of land and production spaces. The current system lacks clarity on property rights, and land conflict resolution is weak. Moreover, land ownership is highly informal be-cause there is a virtual absence of authentic title deeds. Such circumstances severely constrain producers when moving workshops from one location to another to access better facilities. They also hinder business expansion into additional processing activities ; for example, establishing workshops equipped with modern technology.

Difficulties with licensing for artisans hinder develop-ment. MoCI provides licences for businesses in all sectors. Municipalities provide licences and permits to shops and outlets selling to the public. Craftsmen / women, such as jewellery makers, tailors and other handicraft producers have no option but to get permits from both MoCI and their municipality, which complicates operations. The majority of sector stakeholders would prefer a separate licensing pro-cedure by sector, so that jewellery producers would not have to deal with municipal governments.

The sector has a high ability to create jobs for wom-en and men in rural and urban areas, thus contributing to higher living standards. Removing operational obstacles to expanding the precious stones and jewellery sector would unlock its capacity to contribute to poverty alleviation, gen-der inclusiveness and regional integration.



PoA referenceActivities 2.1.1., 2.1.2., 2.1.3., 2.2.1.,

2.2.2., 2.2.4., 2.3.1., 2.3.2.

22


Figure 12 : Problem tree – changeCh

ange

:wea

kin

stitu

tiona

land

infra

stru

ctur

alsu

ppor

tlim

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ese

ctor

’sab

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fgha

nist

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ham

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f Com

mer

ce a

nd In

dust

ries

(ACC

Ihas

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d at

tent

ion

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ers

and

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s su

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nd th

e Fe

dera

tion

of A

fgha

n Cr

afts

men

and

Tra

ders

(FAC

T) d

oes

not h

ave

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rate

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advo

cacy

pla

n fo

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of

craf

tspe

ople

suc

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llery

mak

ers.

AW

CCI i

s ne

wly

esta

blish

ed. T

he P

reci

ous

Ston

e Un

ion

(PSU

) is

as w

ell n

ot w

ell o

rgan

ized.

‘Leg

al p

roce

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s ta

ke u

s 10

day

s an

d we

hav

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mak

e lo

ts of

pa

ymen

ts to

o, w

here

as if

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send

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Pak

istan

and

it is

shi

pped

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m th

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it ta

kes

only

4–5

days

and

cos

ts le

ss’

[ MARKETS FOR AFGHANISTAN’S PRECIOUS STONES AND JEWELLERY SECTOR ]

23

MARKETS FOR AFGHANISTAN’S PRECIOUS STONES

AND JEWELLERY SECTOR

SHINY FUTURE FOR THE PRECIOUS STONES AND JEWELLERY INDUSTRY AND TRADE

The global precious stones and jewellery sector has re-mained resilient even with adverse economic conditions. The jewellery subsector experienced the fastest growth of global sales of personal accessories in 2016. Fine jewel-lery accounted for the largest share ( 87 % ) of total jewellery sales in 2016. Increases in global demand for jewellery are driven by growth in consumption in South-East Asian mar-kets, particularly for fine jewellery. Among the principal Asian markets, India and China account for the largest share of regional demand for jewellery. Other emerging markets in South-East Asia should be explored, as they offer significant opportunities for Afghan jewellery because of proximity and growing ties with these markets.

MARKET SEGMENTATION

The jewellery market is highly fragmented at the global level, with 80 % of jewellery sold without a brand. The share of branded jewellery in the total market is expected to increase.

According to the Centre for the Promotion of Imports from Developing Countries ( 2015 ), the jewellery market can be subdivided into three main categories : fine jewel-lery, bridge jewellery and costume jewellery. Fine jewellery, a growing market, refers to jewellery made with precious metals such as gold and precious gemstones such as rubies, emeralds and sapphires – the big three coloured gems. Bridge jewellery is defined as jewellery designed with more affordable materials, such as gold and silver metals and alloys, and lower-priced gemstones, including zirconia and glass. Finally, costume jewellery, the least expensive segment, is made with non-precious and / or semi-precious metals and gemstones, such as synthetic crystal.

Photo: ITC

24


Figure 13 : Jewellery segmentation and indicative prices

Fine jewellery

Bridge jewellery

Costumejewellery

PPrriiccee RRaannggee: EUR 400–50,000

MMaatteerriiaallss: Gold, platinum, other precious metals and precious gemstones

PPrriiccee Raannggee: EUR 100–400

MMaatteerriiaallss: Gold, silver and their alloys; non-precious metals and alloys, lower-priced gemstones (e.g. zirconia, natural and synthetic crystal, glass, Swarovski Elements)

PPrriiccee Raanggee: up to EUR 100

MMaatteerriiaallss: non-precious, semi-precious materials and gemstones (leather, glass, synthetic crystals, Swarovski Elements)

20% branded

80% unbranded

Source : Centre for the Promotion of Imports from Developing Countries.

FOLLOWING THE LATEST TRENDS

The global jewellery sector is evolving rapidly. Changes in-clude further consolidation of a handful of global players, increasing demand in emerging markets and growth of new distribution channels.

INTERNATIONALIZATION OF BRANDS

Although the jewellery industry is predominantly local, it is expected that a few thriving national or regional brands will further capture and consolidate expansion into global mar-kets. One of the main strategies for jewellery houses will be acquisition of local players. Branded jewellery accounts for roughly 20 % of global jewellery sales. This proportion is expected to continue expanding in the next few years, to as much as 40 % of the global market by 2020. The growth of branded jewellery is driven by emerging-market consumers and young consumers, among others.

E-COMMERCE IS THE FASTEST-GROWING CHANNEL FOR JEWELLERYJewellery distribution channels are also experiencing a reconfiguration as Internet retailing continues to grow. There are substantial variations in the use of e-commerce,

depending on region, brand and type of jewellery. For ex-ample, sales outlets for fine jewellery are expected to remain largely unchanged, as brick-and-mortar stores are consid-ered more reliable for expensive items. Online sales of fash-ion jewellery are expected to increase slightly. Affordable branded jewellery will probably have the largest increase in online sales.

APPEALING TO YOUNG AUDIENCES REQUIRES PRODUCT DEVELOPMENT AND AN ACCELERATION OF SUPPLY CHAIN PROCESSES

As mentioned above, young audiences will be among the main drivers behind the increasing consumption of brand-ed jewellery. ‘Fast fashion’, largely associated with millen-nial shoppers, offers a blueprint for the jewellery industry. In this type of retailing, products can go from concept to store shelves in a month. Firms will have to react to trends quickly and accelerate their product development cycle. In the future, millennials are also expected to be a key target audience for fine jewellery. Innovations in materials and con-temporary design will be important in targeting this cohort within the fine jewellery market segment.


25

PRECIOUS OPPORTUNITIES : CONSOLIDATED AND EMERGING MARKETS

The following analysis is divided into two broad phases : one related to the immediate, short-term perspective and the other to the medium-to-long term outlook, when it is expected that a significant portion of the NES and the sec-tor PoA will have been implemented. This phased approach is aimed at alignment with the evolving capacities of the sector’s trade and investment support institutions and en-terprises as NES implementation moves forward.

SHORT-TERM PRIORITIES ( 1–3 YEARS )

Short-term priorities are product–market combinations which are exporting well but could either : a ) be better per-forming in existing markets with implementation of shorter-term improvements recommended in this Strategy ; or b ) be translated into quick success with promising markets through variations on successful products.

Domestic market

Afghanistan faces fierce competition in its domestic market by – mostly – informally imported jewellery products from neighbouring and international producers. Imported jewel-lery competes on design with locally produced handicrafts, rather than on the authenticity of the semi-precious and precious stones being used. Traditional outlets and Kabul’s famous Chicken street retailers are the main distribution channels in the domestic market.

India

India

Mandatory market requirements

• Permission from the Ministry of Environment, Forest and Climate Change is needed to import precious metals, imita-tion jewellery and gemstones

• Kimberley Process Certificates are issued, mainly to prevent import of conflict diamonds

India presents a highly competitive and fragmented land-scape in the jewellery sector, as a large number of domestic jewellery brands operate and compete in this market. India is a leading player in the global precious stones and jewellery sector. Indian designs are intricate and hence consumers prefer to purchase luxury jewellery products domestically. Sales are led by the Indian company Kalyan Jewellers.

Indian consumers consider luxury goods, including jew-ellery, an investment. For this reason, they place a greater emphasis on the brand name and its heritage when acquir-ing these products. Jewellers’ brands are promoted through

billboards as well as print media such as fashion magazines and local newspapers.

The luxury jewellery segment is expected to continue its strong growth in the Indian market, with sales expected to reach INR 74 billion ( US $ 1.13 billion ) in 2021. The men’s luxury jewellery segment is expected to grow fastest, driven by an increasing focus on jewellery as a fashion statement among Indian men. Indian consumers are expected to shift gradually towards lighter jewellery and away from heavy, bulky items. Indian customers prefer gold jewellery, and India accounts for about 27 % of the global gold jewellery market. However, it should be noted that India imports only modest amounts of gold jewellery – mostly high-end or ma-chine-made – because handmade jewellery is India’s area of expertise. Brick-and-mortar stores will remain the domi-nant outlet for luxury jewellery products, while e-commerce is expected to continue as a niche market over the next few years.

India is currently an important market for exports of Afghan-made jewellery. Certain regions such as South India offer additional opportunities. Because of increasing dis-posable income among consumers in this region, sales of innovative imported products are expected to grow. Indian jewellery makers are proficient in traditional designs but de-sign-led innovations could open opportunities for Afghan exporters.

Photo: ITC

26


Box 8 : Export potential in India

Export potential in India of selected products

International Trade Centre ( ITC ) analysis on the export potential of Afghan products reveals that India is, by far, the market with the greatest untapped potential. Afghan exporters can benefit from the significant size and expected growth of the Indian market, as well

as tariff preferences. Already existing strong trade links between the two countries will open up further opportunities. More than 95 % of the total export potential in India currently remains unused for worked rubies, sapphires and emeralds, as well as other semi-precious and precious stones, both worked and unworked. The potential additional exports equals US $ 6.6 million.*

India: HS 710391– Rubies, sapphires and emeralds, sorked, whether or not graded, but not strung, mounted or set, rubies, sapphires and emeralds, worked, ungraded, temporarily strung

India: HS 710310 – Precious stones and semi.precious stones, unworked or simply sawn or roughly shaped, whether or not graded

MARKET ENTRY REQUIREMENTS

UNTAPPED EXPORT POTENTIAL DEMAND

USD 3,856 tsdUSD 532.8 mn

2011-2015

2020

53%

APPLIED TARIFF

Afghanistan: 0% Ø other suppliers: 9%

Tariff advantage: 9pp

COMPETITION

Concentrated

equivalent suppliers

Main suppliers: Hong Kong, China, United Arab Emirates, Thailand

• Labelling requirements• Packaging requirements• Registration requirements for importers for TBT reasons

(Original documents available at www.macmap.org)


UNTAPPED EXPORT POTENTIAL DEMAND

USD 2,748 tsdUSD 205.2 mn

2011-2015

2020

53%

APPLIED TARIFF



COMPETITION

Concentrated


Main suppliers: Hong Kong, China, Zambia, Thailand

• Labelling requirements• Packaging requirements• Registration requirements for importers for TBT reasons


UNITED VALUERelative index: 0.02

* Source : ITC ( 2017 ).

MEDIUM-TO-LONG TERM ( +3 YEARS )

The markets listed in the short-term section above also have export potential in the medium-to-long term, unless specified otherwise. However, additional market research, product development and Strategy implementation would be required and is unlikely to be completed in less than two years.

United States

United States


• Commercial imports of diamonds, jewellery, pearls, and pre-cious and semi-precious stones valued at US $ 2,500 or more require additional Customs clearance steps

• A Customs Bond CBP Form 301 is required for all formal entries• Suppliers of children’s plated metal jewellery and other children’s

items ( such as rattles ) must provide proof of the lead-content testing and certification required of manufacturers and direct importers of children’s jewellery


27

The United States jewellery sector is also highly competi-tive, as international and national players, as well as small and large manufacturers, are present in this large market. Estimates indicate that the average American household spends roughly US $ 600 annually on fine jewellery and watches. The top buyers of fine jewellery, excepting watch-es, are millennials, aged 24–35. The fine jewellery segment, paired with technology, offers opportunities to engage mil-lennial consumers.

The costume jewellery sector is expected to follow a ‘fast fashion’ path similar to the apparel sector. Major dis-tribution channels will be multi-brand boutiques, followed by online retailers. Rings and earrings are expected to be the leading segment in the costume jewellery market. Because of its convenience, online retailing will increase

in the coming years in market segments such as costume jewellery. E-commerce will also be driven by the increasing purchasing power of young consumers who are digital na-tives. E-commerce will become more price competitive as more retailers use this buying platform.

The United States offers opportunities for Afghan jewel-lery exporters. Demand for coloured stones has remained stable, particularly in the flourishing fine jewellery segment, which uses high-quality gems as well as unique or rare stones sought by collectors. To tap into opportunities at the lower end, which also presents a healthy outlook, marketing focus should be on gem colour rather than type. Thus, tour-maline, widely used in Afghan jewellery, can be marketed to the more price-conscious segment of the United States market.

Box 9 : Export potential in the United States

Export potential in the United States of selected products

Afghanistan currently exports both precious stones and jewellery to the United States market, but the share of worked jewellery remains comparatively small. ITC analysis predicts a 19 % increase

in demand for jewellery articles in the United States market through 2020. Silver-based jewellery is a feasible option with good pros-pects for export diversification. Afghanistan could also benefit from the United States tariff advantage of 4 % on average over competitors in Thailand, China and India.*


DEMANDPRODUCT DIVERSIFICATION RANK

USD 2.1 bn2011-2015

2020

19%

157/3,828

APPLIED TARIFF



COMPETITION

Concentrated


Main suppliers: Thailand, China, India

• Various measures apply. For more information, please view http://www.macmap.org/CountryAnalysis/NTM/LinksResults.aspx?country=SCC842

* Source : ITC ( 2017 ).

28


EU

EU

Mandatory requirements Non-mandatory requirements

• General product safety – applicable to all products• Chemicals – as jewellery is usually worn on the skin,

the use of hazardous chemicals is restricted• Convention on International Trade in Endangered Species

– applicable to products made from wild plants and animals• Hallmarks – applicable to gold and silver jewellery in some

countries

• Two retail initiatives have gained ground, particularly in western European countries :

• Business Social Compliance Initiative and Ethical Trading Initiative• Others : International Council on Mining and Metals ( sustainable

mining ), Responsible Jewellery Council and the Initiative for Responsible Mining Assurance.

A competitive market, the European jewellery sector is char-acterized by fierce competition from countries with estab-lished reputations, such as France and Italy, particularly for fine jewellery. Nonetheless, the EU offers significant oppor-tunities for costume and bridge jewellery. To tap into these market segments, Afghan exporters will have to compete with manufacturers from other developing countries such as China, Malaysia and Mauritius.

Niche products hold the best opportunities for Afghan jewellery exporters. Although niche products are sold in lower volumes, they offer better margins because the added value and labour intensity are higher. Niche designs that

could be profitable for Afghan jewellery makers include customizable jewellery, storytelling ( socially conscious ) de-signs, and designs with a local or ethnic touch.

Of critical importance are buyer requirements in European markets. In addition to legislative requirements to protect the health and safety of end users, certain European buyers may impose codes of conduct related to jewellery manufacturing conditions or environmental performance across the supply chain. Intellectual property rights are also regarded as crucial in creative sectors such as jewellery. Lastly, European markets hold high standards regarding product consistency from suppliers.

Requirements for jewellery in the EU market

Legal requirements – ‘musts’

• General product safety : all products entering the EU market must be safe to use ( General Product Safety Directive ).

• Chemicals : the EU has restricted a great number of chemicals in products that are marketed in the EU, restricted chemicals are listed in the Registration, Evaluation, Authorization and Restriction of Chemicals Regulation ( European Commission ) 1907/2006.

• Metals : The EU has restricted the use of certain heavy metals to avoid allergic reactions : » Cadmium and its compounds in bracelets, necklaces, rings, piercing jewellery, wrist watches,

wristwear, brooches and cufflinks » Nickel in in earrings, necklaces, bracelets, chains, anklets, finger rings, wristwatch cases, watch

straps and tighteners » Lead and its compounds in bracelets, necklaces, rings, piercing jewellery, wristwatches, wristwear,

brooches, cufflinks and any individual part or component.• Restriction of azo dyes in textiles and leather.• Restriction of chromium VI in leather.• Non-usage of parts of wild plants or animals from endangered species under the restrictions of the

Convention on International Trade in Endangered Species.• Hallmarks for gold and silver jewellery : in some member states of the EU, control and hallmarking of

every article by an independent body is compulsory.• General requirements on packaging and liability.

Non-legal requirements – ‘good to have’

• Sustainable performance : EU buyers appreciate a good story.• Fair trade concept : niche initiative, which supports fair pricing and improved social conditions for

producers and communities.• Fair and responsible practice in the whole jewellery supply chain respecting human rights ( e.g.

Fairgold, Fairmined, Oro Verde ).• Environmental awareness.• Fair wages.• Traceability.• Greenpeace standard – in addition to the Regulation on Registration, Evaluation, Authorization and

Restriction of Chemicals standard – The Detox Campaign for a toxic-free future.


29

UAE

UAE


• Kimberley Process Certificates are issued, mainly to prevent conflict diamonds

• A duty of 5 % is imposed on gold jewellery

The UAE represents a significant opportunity for the Afghan jewellery sector because of its market proximity and cul-tural affinity. Moreover, the UAE is a major exporter and re-exporter worldwide. Dubai is a supply hub for the Middle Eastern jewellery market. The main suppliers are from Saudi Arabia, India, Pakistan, Thailand and Italy, among others. Major companies operating in this market include Al Ruwais Jewellery, Asia Jewellery, and Motiwalla Jewellery. Several

international fairs and exhibitions are held in the UAE market, including Dubai International Jewellery Week.

In the costume jewellery segment, there are well-estab-lished luxury brands as well as mass-market brands that provide competitively priced products. Costume jewellery suppliers seek to capture increasingly savvy consumers. In fine jewellery, UAE consumers show preferences for solitaire diamonds as well as coloured stones such as emeralds. Consumption of the latter is also driven by young consum-ers who prefer precious stones over gold-based jewellery. Afghanistan emeralds are considered among the finest in the world, and the abundance of this natural resource gives Afghan traders a competitive edge in the market. Precious stones and jewellery are sold through a wide variety of distri-bution channels, including exclusive showrooms, the Dubai Gold Souk and online retail.

Box 10 : Export potential in the UAE

Export potential in the UAE of selected products

Similar to the United States market, the UAE has untapped oppor-tunities in worked jewellery. Afghanistan has already established trade relationships in the UAE but worked jewellery represents

only a small share of its export basket. According to ITC analysis, the UAE market for jewellery is expected to grow by 24 % through 2020. The Emirati market has space for new Afghan suppliers to enter a market currently dominated by Indian exporters.*

DEMANDPRODUCT DIVERSIFICATION RANK

USD 262.3 bn2011-2015

2020

24%

174/3,646

APPLIED TARIFF



COMPETITION

Concentrated


Main suppliers: India, Italy, Pakistan

United Arab Emirates: HS 711311 – Articles of jewellery and parts thereof, of silver, whether or not plated or clad with other precious metal (excluding articles > 100 years old)

• Testing requirement• Inspection requirement• Marking requirements• Product identity requirement• Product quality of performance requirement• Import monitoring and surveillance requirements and other automatic licensing measures• Labelling requirements



* Source : ITC ( 2017 ).

Photo: ITC

[ STRATEGIC OPTIONS FOR REVIVING AND PROMOTING AFGHAN PRECIOUS STONES AND JEWELLERY ]

31

STRATEGIC OPTIONS FOR REVIVING AND PROMOTING

AFGHAN PRECIOUS STONES AND JEWELLERY

VISION

This sector is united by the following vision :

“ Precious stones and jewellery : revealing Afghan beauty

to international markets ”In order to achieve this vision, the following main strategic objectives are proposed :

STRATEGIC OBJECTIVE 1 : INCREASE PRODUCTIVE CAPACITY WHILE SUPPORTING DIVERSIFICATION AND ENTREPRENEURSHIP.

To develop production capacity and diversification for in-creased sales in local and international markets, Afghanistan needs to develop skills throughout the value chain. The fol-lowing issues especially must be addressed :

� Miners are completely unprofessional, and in the past 15 years, MoMP has taken no action to improve the situa-tion. There is an urgent need to train miners to stop using explosives and outdated extraction tools that decrease the quality and value of gemstones.

� Entrepreneurs need regular business training and wider exposure in order to feel equipped to operate and expand their businesses.

� At present, production workers are being trained in the traditional way. Each company trains its workers in cut-ting, polishing, moulding and other facets of jewellery making. An institution is needed to provide standard courses and the certification needed to enhance the credibility of the sector.

Access to finance is another critical requirement to enhance production capacity. Lack of financing restricts both men and women in the sector, in different ways. The sector needs to increase advocacy with the Government to provide loans with lower interest rates, decreased or different types of collat-eral and longer repayment periods, including a grace period.

Photo: ITC

32


Figure 14 : Future value chain – strategic objective 1

Prod

uctio

nAs

sem

bly

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essi

ngDi

strib

utio

nDo

mes

tic m

arke

t

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t

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e M

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ing

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ious

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als

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ewel

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abul

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llery

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pany

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ce

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pany

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llery

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n, c

ertif

icat

ion,

etc

.)


33

STRATEGIC OBJECTIVE 2 : IMPROVE THE REGULATORY FRAMEWORK AND INFRASTRUCTURE SUPPORT

The most complicated problem in this sector is the need for mining regulations and lack of monitoring of existing mining laws, which has led to a tremendous waste of Afghanistan’s mineral resources and to smuggling from Afghanistan to Pakistan. The sector would benefit greatly from simpler processes and rapid implementation of mining laws. The current means of extraction result in large losses for Afghan producers and the Government.

This strategic objective also involves tackling the issues of multiple licensing and multiple taxation. Improving ac-cess to quality testing and certification will also be crucial

for the sector. This will entail establishing standards for this sector and laboratories focusing on the sector, and provid-ing appropriate training to technical staff to support com-pliance with mandatory and buyers’ requirements in target markets.

Overall, there is a need to strengthen the advocacy ca-pacity of sector groups such as AWCCI, the Afghanistan Chamber of Industries and Mines ( ACIM ), ACCI, FACT and PSU. A committee with representatives from each of these entities can use the strategies outlined in this report to guide their advocacy work.

Photo: ITC

34


Figure 15 : Future value chain – strategic objective 2Pr

oduc

tion

Asse

mbl

yPr

oces

sing

Dist

ribut

ion

Dom

estic

mar

ket

Quar

ryin

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inin

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ers

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ng c

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ing

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ket

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l min

ority

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e ru

n th

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rmits

, tax

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powe

r


35

STRATEGIC OBJECTIVE 3 : CREATE AND PROMOTE AN AFGHAN PRECIOUS STONES AND JEWELLERY BRAND

A major requirement to ensure the long-term sustainability of the sector is properly branding and promoting the ‘Made in Afghanistan’ or ‘Product of Afghanistan’ brand on a global scale. Through this strategic objective, long-term marketing and branding strategies will be developed with the full par-ticipation of the private sector.

Individual enterprises with potential to export need help to develop individual marketing and promotion plans and materials. They can also be strategically supported to make connections with buyers and develop long-term relationships.

Women need special assistance to improve access to local and international markets, including long-term training and coaching in export management, financial management and order management. They also need special measures to access local markets, either through outlets or partner-ships with men who would sell for them on a regular basis.

‘I was astonished when a visitor approached me in my stall at an international exhibition and picked up the emerald and asked: “Is this emerald from Panjshir Pakistan?”

‘I felt more determined to work from Afghanistan and for Afghanistan to change this kind of misperception.’

- Nahid Hamidi, a female precious stone and jewellery company owner

Photo: ITC

36


Figure 16 : Future value chain – strategic objective 3

Quar

ryin

g(M

inin

g)•

Min

ers

are

warlo

rds

and

villa

gers

livi

ng c

lose

by

min

es•

Gove

rnm

ent l

ack

in c

ontro

l ov

er m

ine

Tran

spor

tatio

nby

min

ers

toci

ties

Expo

rter

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estic

proc

essi

ngfa

ctor

ies

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n re

tail

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s wi

th s

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ge a

nd

work

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/ fa

ctor

y at

tach

ed

Cutti

ng /

refin

emen

t

Polis

hing

/ Sh

apin

g / T

reat

ing

Inte

rnat

iona

l mar

ket

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oms

offic

e

(min

or C

usto

ms

fee

paid

bu

t onl

y a

smal

l min

ority

of

good

s ar

e ru

n th

roug

h)

Site

Sel

ectio

n

Drill

ing

/ Bla

stin

g

Exca

vatio

n, L

oadi

ng, H

aulin

g,

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spor

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ing

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iner

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stan

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Mid

dlem

en

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ializ

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l

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welle

ry•

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onds

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ticle

s of

Jew

elle

ry a

nd P

arts

Cons

ider

ed a

s be

st w

ay to

avo

id

AFG

taxe

s /

licen

ses

Cutti

ng in

sm

alle

r pie

ces

Old

piec

eco

llect

ors

in K

abul

, Maz

ar-e

-Sh

arif,

Bam

yan,

Ku

nduz

Dom

estic

jewe

llery

prod

ucer

sW

orks

hops

em

ploy

ing

1-20

wor

kers

in

Kabu

l, Ba

lkh,

Her

at, K

anda

har

Desi

gnin

g

Mel

ting

/ mou

ldin

g / c

arvi

ng

Wor

ksho

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tail

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hing

/ Sh

apin

g / T

reat

ing

Paki

stan

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elle

rypr

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ers

Expo

rtm

arke

tdiv

ersi

ficat

ion

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dia

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EU•

UAE

Mar

ket a

naly

sis

Mar

ket i

nfor

mat

ion

syst

em

Esta

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hmen

t of

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room

s

Inte

rnat

iona

l st

anda

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Mar

ket a

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nal c

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ition

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tal m

arke

ting

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et m

arke

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alys

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an b

rand

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aini

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rmat

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n sy

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t

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e M

ines

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tone

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ing

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ious

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als

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ewel

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ion

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gn

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illed

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ur

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ty /

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r

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nAs

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bly

Proc

essi

ngDi

strib

utio

nDo

mes

tic m

arke

t

[ MOVING TO ACTION ]

37

MOVING TO ACTION

KEY REQUIREMENTS FOR EFFECTIVE IMPLEMENTATION

The development of the future value chain for the precious stones and jewellery sector is a five-year project defined through a consultative process between Afghan public and private sector stakeholders. Achieving the strategic objec-tives and realizing the future value chain depends heavily on the ability of sector stakeholders to start implementing and coordinating the activities defined in the Strategy’s PoA.

The Strategy in and of itself will not alone be sufficient to ensure the sector’s sustainable development. Such de-velopment will require the coordination of various activi-ties. While the execution of these activities will allow for the Strategy’s targets to be achieved, success will depend on the ability of stakeholders to plan and coordinate actions in a tactical manner. Apparently unrelated activities must be synchronized across the public sector and private sector, non-governmental organizations and local communities in order to create sustainable results.

To ensure the success of the Strategy, it is necessary to foster an adequate environment and create an appro-priate framework for implementation. The following section presents some of the key success conditions considered necessary for effective implementation.

ESTABLISH AND OPERATIONALIZE A PUBLIC AND PRIVATE COORDINATING BODY AND EXECUTIVE SECRETARIAT

Precious stones and jewellery sector steering committeeA key success criterion for the Strategy is the ability to coor-dinate activities, monitor progress and mobilize resources for implementation. It is recommended that a steering com-mittee comprising the key public and private sector entities be formed or supported ( if such a committee already exists ). This will function as a platform with balanced representation of all major precious stones and jewellery sector stakehold-ers to share information in open communication.

Overall it is proposed that the steering committee be re-sponsible for the following responsibilities related to Strategy implementation :

� Coordinate and monitor the implementation of the Strategy by the Government, private sector, institutions or international organizations to ensure implementation is on track ;

� Identify and recommend allocation of resources neces-sary for the implementation of the Strategy ;

� Assess the effectiveness and the impact of the Strategy ; � Ensure consistency with the Government’s existing

policies, plans and strategies, and align institutions’ and agencies’ internal plans and interventions with the Strategy PoA ;

� Elaborate and recommend revisions and enhancements to the Strategy so that it continues to best respond to the needs and long-term interests of the national business and export community ;

� Propose key policy changes to be undertaken based on Strategy priorities, and promote these policy changes among national decision makers ;

� Guide the sector secretariat for the monitoring, coordi-nation, resource mobilization, and policy advocacy and communication functions to enable effective implementa-tion of the Strategy ; a criterion for success of the Strategy is the ability to coordinate activities, monitor progress and mobilize resources ;

� Provide the sector secretariat with the mandate and the necessary resources to fulfil its functions effectively.

Composition of the steering committee

It is recommended that the steering committee be com-prised of key entities involved in the sector, with a special focus on ensuring equitable involvement of both the public and the private sector.

Secretariat

A secretariat will assist the steering committee by acting as an operational body responsible for the daily coordination, monitoring and mobilization of resources for implementing the PoA. It is proposed that it takes on this role with techni-cal support from key ministries and technical agencies. The secretariat will be composed of 1–2 technical operators.

38


The core responsibilities of the sector secretariat should be to :

� Support functioning of the steering committee ; � Collect and manage data to monitor the progress and

impact of Strategy implementation ; � Liaise with and coordinate development partners for

Strategy implementation ; � Elaborate project proposals and build partnerships to

mobilize resources to implement the Strategy ; � Follow up on policy advocacy recommendations from the

steering committee ; � Ensure effective communication and networking for suc-

cessful Strategy implementation.

Both the steering committee and its secretariat will work hand-in-hand with existing entities established to stream-line Government operations and enhance donor operations. These include the NES secretariat and others. It is possible that the secretariat is accommodated as part of an existing entity with an extended mandate and resources allocated to it.

Photo: ITC

STRATEGIC PLAN OF ACTION

40


Stra

tegi

c ob

ject

ive

1 : In

crea

se p

rodu

ctiv

e ca

paci

ty w

hile

sup

porti

ng d

iver

sific

atio

n an

d en

trepr

eneu

rshi

p.

Oper

atio

nal

obje

ctiv

esAc

tiviti

esPr

iorit

y 1=

high

2=

med

3=

low

Impl

emen

tatio

n pe

riod

Targ

ets*

Lead

and

sup

porti

ng

impl

emen

ters

2017

2018

2019

2020

2021

2022

1.1.

Impr

ove

prod

uc-

ers’

ent

repr

eneu

rshi

p an

d bu

sine

ss m

an-

agem

ent k

nowl

edge

an

d sk

ills.

1.1.

1. O

rgan

ize re

gular

expo

sure

visits

for p

rodu

cers

to in

terna

tiona

lly w

ell-e

stabl

ished

prec

ious

ston

e and

jewe

l-ler

y exp

orter

s, ins

titut

ions

and

prod

ucer

s in

and

outsi

de o

f the

regi

on in

ord

er to

enha

nce A

fgha

n pr

oduc

ers’

view

of

their

bus

iness

es /

prod

ucts

and

learn

how

to d

evelo

p en

trepr

eneu

rial a

nd m

anag

erial

skill

s.

2•

At le

ast 2

5 ex

posu

re vis

its ea

ch ye

ar AW

CCI

Expo

rt Pr

omot

ion

Agen

cy

of A

fgha

nistan

( EPA

A ),

ACIM

, FAC

T and

PSU

1.1.

2. P

rovid

e sup

port

to th

e Gov

ernm

ent t

o es

tablis

h bu

sines

s and

entre

pren

eursh

ip tr

aining

s for

the h

andi

craft

ex

port

secto

r. Tra

ining

s sho

uld

be h

ouse

d in

the E

cono

mics

Fac

ulty

in all

majo

r univ

ersit

ies. E

PAA

coul

d als

o es

-tab

lish

a trai

ning

wing

.

• De

velo

p a b

usine

ss m

anag

emen

t and

entre

pren

eursh

ip tr

aining

curri

culu

m an

d m

ateria

ls.•

Train

traine

rs.•

Crea

te a t

rainin

g ca

lenda

r and

help

relev

ant o

rgan

izatio

ns im

plem

ent i

t.•

Help

org

aniza

tions

impl

emen

t the

agr

eem

ent d

uring

the

first

year

so th

at su

ch tr

aining

pro

gram

mes

will

be

part

of th

eir fu

ture

workp

lans.

1•

Quar

terly

traini

ngs h

eld ev

ery y

ear

Min

istry

of H

ighe

r Ed

ucat

ion

and

MoC

I ( E

PAA )

1.2.

Impr

ove

ac-

cess

to s

kille

d la

bour

th

roug

hout

the

valu

e ch

ain.

1.2.

1. C

ondu

ct an

inde

pend

ent a

sses

smen

t of e

xistin

g tec

hnica

l and

voca

tiona

l edu

catio

n an

d tra

ining

( TVE

T )

cour

ses o

n pr

ecio

us st

ones

and

jewell

ery,

as w

ell as

a ne

eds a

sses

smen

t of T

VET i

nstit

utio

ns.

Deve

lop

partn

ersh

ips w

ith p

recio

us st

ones

and

jewell

ery s

choo

ls an

d ot

her T

VET i

nstit

utio

ns in

Indi

a and

Eur

ope

for e

xcha

nges

of s

tude

nts a

nd te

ache

rs ; t

ransfe

r of k

nowl

edge

and

techn

olog

y ; an

d im

prov

emen

t of t

echn

olog

y and

tea

ching

stan

dard

s and

qua

lifica

tions

.

2•

Asse

ssm

ent o

f sec

tor s

choo

ls•

Traini

ng p

rogr

amm

es an

d sk

ills o

f trai

n-er

s upg

raded

Min

istry

of E

duca

tion

( MoE

)

1.2.

2. Tr

ain sk

illed

labo

ur in

mini

ng an

d pr

oces

sing.

• Es

tablis

h sh

ort-t

erm

cou

rses

at Ka

bul U

niver

sity’s

Geo

logy

Dep

artm

ent o

n ho

w to

extr

act p

recio

us s

tone

s fro

m

mine

s with

out u

sing

hand

gren

ades

.•

Estab

lish

a mem

oran

dum

of u

nder

stand

ing w

ith K

abul

Univ

ersit

y to

inclu

de sh

ort-t

erm

cou

rses o

n a r

egul

ar ba

-sis

in co

ordi

natio

n wi

th M

oMP.

• De

velo

p a s

hort-

term

cou

rse c

urric

ulum

that

build

s mini

ng an

d pr

oces

sing

skill

s, as

well

as ap

plica

tion

of m

od-

ern t

echn

olog

y for

impr

oved

mini

ng an

d so

rting

, by t

each

ing ho

w ou

tdate

d tec

hniq

ues h

arm th

e qua

lity o

f sto

nes.

• Te

ach

prac

tical

use o

f pro

fessio

nal t

ools.

• Co

nnec

t sho

rt-ter

m co

urse

s’ ce

rtific

ation

to m

ining

lice

nces

.•

Train

parti

cipan

ts on

iden

tifica

tion

of m

etals

and

stone

s to

avoi

d m

ixing

up

meta

l and

prec

ious

ston

e vari

eties

.

1•

One

cour

se fo

r eac

h sta

ge o

f the

valu

e ch

ainM

oMP

and

Kabu

l Un

iver

sity

AWCC

I, AC

IM, F

ACT,

Afgh

anite

and

PSU

1.2.

3. E

stabl

ish an

insti

tutio

n fo

cuse

d on

pro

viding

train

ing in

jewe

llery

desig

n an

d cu

tting

ston

es. E

stabl

ishm

ent

base

d on

a pu

blic–

priva

te pa

rtner

ship

with

an ex

isting

insti

tutio

ns is

a po

ssib

le so

lutio

n.

• He

lp th

is ins

titut

ion

estab

lish

stand

ard co

urse

s for

each

valu

e cha

in ste

p.•

Prov

ide

thes

e co

urse

s as t

rainin

g op

portu

nities

for d

esig

ners,

cut

ters,

polis

hers

and

jewell

ery m

aker

s on

a reg

u-lar

bas

is.

1•

One i

nstit

utio

n fu

lly fu

nctio

nal

MoL

SAM

D AW

CCI,

FACT

and

PSU

1.2.

4. D

evelo

p an

ince

ntive

fram

ewor

k as w

ell as

in-h

ouse

train

ing p

rogr

amm

es to

dev

elop

and

enha

nce i

n-ho

use

traini

ng b

y ent

erpr

ises f

or ap

pren

tices

hip, v

ocati

onal

and

on-th

e-jo

b tra

ining

. Inc

eptiv

e typ

es to

be f

urth

er d

efine

d ba

sed

on b

est p

ractic

es p

rom

oted

by t

he In

terna

tiona

l Lab

our O

rgan

izatio

n.

2•

One s

tanda

rdize

d fram

ewor

k for

the s

ec-

tor b

ased

on

best

prac

tices

MoL

SAM

D, M

oE

1.2.

5. C

ondu

ct a r

apid

asse

ssm

ent o

f the

secto

r thr

ough

field

cons

ultat

ions

with

pro

duce

rs, b

uyer

s, yo

ung

peop

le an

d tra

ining

insti

tutio

ns to

:

• Ide

ntify

the s

kills

dem

ande

d by

the m

arket

in th

e diff

erent

stag

es o

f the

secto

r valu

e cha

in.•

Map

the e

xistin

g fo

rmal

traini

ng o

ffer a

s well

as th

e inf

orm

al tra

ining

prac

tices

activ

e in

the s

ecto

r.•

Asse

ss th

e int

erest

of yo

ung

peop

le in

enga

ging

in th

e sec

tor.

1•

One y

outh

asse

ssm

ent in

all m

ain ex

trac-

tion

and

prod

uctio

n hu

bs•

One

repor

t with

resu

lts o

f the

secto

r as-

sess

men

t, inc

luding

form

al an

d info

rmal

traini

ng o

ffered

in th

e sec

tor

• On

e int

erest

surve

y con

ducte

d wi

th 1

00

yout

h int

ereste

d in

worki

ng in

the s

ecto

r

MoL

SAM

D, M

oE

* Ta

rget

s ar

e in

dica

tive

only

and

will

be

the

subj

ect o

f fur

ther

refin

emen

t at b

egin

ning

of t

he im

plem

enta

tion

man

agem

ent s

tage

. Sim

ilarly

, the

lead

an

d su

ppor

ting

impl

emen

ters

col

umn

rem

ains

indi

cativ

e be

caus

e im

plem

enta

tion

will

requ

ire c

olle

ctiv

e ef

forts

, so

addi

tiona

l ins

titut

ions

may

be

adde

d.

[ STRATEGIC PLAN OF ACTION ]

41

Stra

tegi

c ob

ject

ive

1 : In

crea

se p

rodu

ctiv

e ca

paci

ty w

hile

sup

porti

ng d

iver

sific

atio

n an

d en

trepr

eneu

rshi

p.

Oper

atio

nal

obje

ctiv

esAc

tiviti

esPr

iorit

y 1=

high

2=

med

3=

low

Impl

emen

tatio

n pe

riod

Targ

ets*

Lead

and

sup

porti

ng

impl

emen

ters

2017

2018

2019

2020

2021

2022

1.2.

Impr

ove

ac-

cess

to s

kille

d la

bour

th

roug

hout

the

valu

e ch

ain.

1.2.

6. E

nhan

ce yo

ung

peop

le’s (

parti

cular

ly ret

urne

es’ )

aware

ness

of s

kills

deve

lopm

ent a

nd ec

onom

ic op

portu

ni-tie

s ava

ilabl

e in

the s

ecto

r thr

ough

:

• Ra

dio

show

s with

loca

l cha

mpi

ons o

f the

secto

r.•

Exhib

ition

s and

fairs

to p

rom

ote t

he se

ctor a

mon

g yo

ung

peop

le.•

Socia

l med

ia an

d ot

her o

nline

plat

form

s with

hig

h yo

uth

pres

ence

.

2•

One r

adio

show

ever

y thr

ee m

onth

s with

lo

cal c

ham

pion

s of t

he se

ctor

• Tw

o ex

hibiti

ons a

nd fa

irs p

er ye

ar•

One

soci

al m

edia

and

onlin

e pl

atfor

m

for t

he se

ctor

MoL

SAM

D, M

oE, P

SU

1.2.

7. B

ased

on

the f

inding

s of t

he sk

ills g

ap st

udy,

traini

ng in

stitu

tions

for y

outh

will

be s

uppo

rted

to :

• De

velo

p an

d im

prov

e cur

ricul

a rele

vant

to th

e sec

tor i

n are

as su

ch as

artis

anal

mini

ng p

ractic

es, c

uttin

g an

d po

l-ish

ing g

emsto

nes,

jewell

ery d

esig

n an

d jew

eller

y mak

ing.

• Int

egrat

e entr

epren

eursh

ip an

d intr

oduc

tory b

usine

ss m

anag

emen

t mod

ules s

uch a

s acc

ounti

ng, s

ales a

nd m

arketi

ng.

• Al

ign

with

nati

onal

or in

terna

tiona

l stan

dard

s and

certi

ficati

on sc

hem

es to

ensu

re rec

ognit

ion

of th

e qua

lifica

tions

an

d m

eet m

arket

requir

emen

ts.

1•

One

yout

h-tai

lore

d cu

rricu

lum

for e

ach

secto

r-rela

ted fie

ld ( m

ining

, cutt

ing, p

ol-ish

ing, d

esign

and j

ewell

ery m

aking

, en-

trepr

eneu

rship

/ bu

sines

s man

agem

ent )

• Ce

rtific

atio

n sc

hem

es fo

r you

th w

ho

com

plete

the c

ourse

MoL

SAM

D, M

oE, M

oMP,

ACIM

, Afg

hanit

e

1.2.

8. E

nhan

ce an

d ro

ll ou

t tec

hnica

l skil

ls tra

ining

pro

gram

mes

relat

ed to

the s

ecto

r to

Afgh

an yo

uth,

inclu

d-ing

scho

ol d

ropo

uts a

nd re

turn

ees.

The s

kill a

reas w

ill b

e bas

ed o

n th

e sec

tor s

kills

gap

asse

ssm

ent a

nd th

e en-

hanc

ed cu

rricu

la in

orde

r to

ensu

re ali

gnm

ent w

ith m

arket

requir

emen

ts. Th

e trai

ning

prog

ramm

es w

ill b

e dep

loye

d th

roug

h :

• Ex

isting

loca

l trai

ning

instit

utio

ns en

gage

d in

secto

r skil

ls de

velo

pmen

t.•

Com

puter

-bas

ed tr

aining

on

jewell

ery d

esig

n an

d m

aking

, ent

repren

eursh

ip an

d bu

sines

s man

agem

ent.

• Sk

ills c

ompe

titio

ns an

d aw

ard m

echa

nism

s on

jewell

ery d

esig

n an

d m

aking

.•

Stud

y trip

s to

coun

tries

in th

e reg

ion

( suc

h as

Tha

iland

, Ind

ia ) to

expo

se tr

ainee

s to

best

prac

tices

in d

esig

n an

d pr

oduc

tion.

1•

Quar

terly

techn

ical s

kills

and

voca

tion-

al tra

ining

pro

gram

mes

for y

outh

in th

e se

ctor

MoL

SAM

D, M

oE, M

oMP,

ACIM

1.2.

9. E

stabl

ish ar

range

men

ts be

twee

n Af

ghan

train

ing in

stitu

tions

and

regio

nal /

inter

natio

nal t

rainin

g ins

titut

ions

, as

well

as w

ith in

terna

tiona

l com

panie

s, to

:

• Ex

chan

ge te

chnic

al kn

owled

ge o

n pr

ecio

us st

one c

uttin

g an

d po

lishin

g, an

d jew

eller

y des

ign

and

mak

ing.

• Co

nduc

t trai

ning

of tr

ainer

pro

gram

mes

to b

uild

instru

ctor c

apac

ity.

• Ac

cess

firm

-to-fi

rm te

chnic

al as

sistan

ce in

gem

stone

pro

cess

ing an

d jew

eller

y pro

ducti

on.

• Pr

omot

e Afg

han

gem

stone

s and

jewe

llery

desig

ns.

• Fa

cilita

te tec

hnol

ogy a

nd eq

uipm

ent t

ransfe

r.

2•

At le

ast o

ne tr

ainin

g pa

rtner

ship

esta

b-lis

hed

per y

ear

Min

istry

of F

orei

gn

Affa

irs, M

oLSA

MD,

MoE

, M

oMP,

ACIM

1.2.

10. C

reate

a sho

rt-ter

m p

aid ap

pren

tices

hip p

rogr

amm

e for

yout

h wi

th m

aster

craft

speo

ple t

o :

• De

liver

han

ds-o

n sk

ills t

rainin

g in

prec

ious

ston

es p

roce

ssing

, jew

eller

y des

ign

and

mak

ing.

• Pr

ovid

e cer

tifica

tion

on co

mpl

etion

of a

n ap

pren

tices

hip p

rogr

amm

e.

2•

Crea

tion

of o

ne sh

ort-t

erm

paid

appr

en-

tices

hip pr

ogram

me f

or 25

youth

per y

ear

MoL

SAM

D, M

oE, M

oMP,

Mini

stry o

f For

eign

Affai

rs, A

CIM

, Afg

hanit

e

1.3.

Impr

ove

acce

ss

to fi

nanc

e.

1.3.

1. S

uppo

rt pr

oduc

ers o

f this

secto

r to

unde

rstan

d fin

ance

, and

impr

ove a

cces

s to

finan

ce an

d fin

ancia

l und

er-sta

nding

thro

ugh

long

er-ter

m tr

aining

and

coac

hing

prog

ramm

es.

• Inc

orpo

rate t

rainin

gs in

the c

urric

ulum

of th

e bus

iness

man

agem

ent a

nd en

trepr

eneu

rship

capa

city-

build

ing in

itiativ

e.•

Impr

ove f

inanc

ial sy

stem

s and

doc

umen

tatio

n in

orde

r to

enab

le be

tter f

inanc

ial p

lannin

g by

pro

duce

rs.•

Revie

w eli

gibi

lity c

riter

ia fo

r ban

k loa

ns.

2•

Quar

terly

sess

ions

Ex

port

Prom

otio

n Ag

ency

of

Afgh

anis

tan /

AWCC

I, AC

IM

1.3.

2. P

rovid

e sup

port

to p

rivate

secto

r rep

resen

tative

s in

lobb

ying

MoF

and

Da A

fgha

nistan

Ban

k for

easy

and

in-ex

pens

ive lo

ans a

s well

as fo

r fina

ncing

pro

gram

mes

for t

he se

ctor b

y em

phas

izing

the p

oten

tial f

or ex

ports

.Lo

bby e

spec

ially

for w

omen

, as w

omen

’s ac

cess

to fi

nanc

e is l

imite

d. W

omen

also

hav

e lim

ited

abili

ty to

pro

vide

prop

erty

as co

llater

al an

d ne

ed a

long

er g

race p

erio

d.

2•

Num

ber o

f men

and

wom

en in

the

sec-

tor g

etting

loan

s AW

CCI a

nd s

ecto

r lob

-by

ing

com

mitt

ee

42


Stra

tegi

c ob

ject

ive

1 : In

crea

se p

rodu

ctiv

e ca

paci

ty w

hile

sup

porti

ng d

iver

sific

atio

n an

d en

trepr

eneu

rshi

p.

Oper

atio

nal

obje

ctiv

esAc

tiviti

esPr

iorit

y 1=

high

2=

med

3=

low

Impl

emen

tatio

n pe

riod

Targ

ets*

Lead

and

sup

porti

ng

impl

emen

ters

2017

2018

2019

2020

2021

2022

1.4.

Impr

ove

acce

ss

to in

puts

. 1.

4.1.

Con

duct

a sur

vey o

n ex

isting

and

requir

ed in

put g

oods

, fun

ction

s and

servi

ces f

or th

e ind

ustry

as a

basis

for

plan

ning,

secto

r dev

elopm

ent a

nd in

vestm

ent p

rom

otio

n.Ba

sed

on th

e sur

vey,

cond

uct t

argete

d inv

estm

ent p

rom

otio

n an

d de

sign

affor

dabl

e loa

ns in

ord

er to

incr

ease

ac-

cess

ibili

ty to

expe

nsive

, mod

ern

mac

hiner

y and

tool

s for

:

• Cu

tting

, refi

ning,

pol

ishing

and

finish

ing ra

w m

ateria

l ( i.e

. sem

i and

prec

ious

ston

es an

d m

etals )

• Ge

msto

ne an

d m

etal-c

uttin

g, m

elting

and

mou

lding

mac

hines

• Ba

sed o

n the

surve

y, de

sign a

nd im

plem

ent m

easu

res to

impr

ove d

istrib

ution

of ra

w m

ateria

ls ( e

.g. s

emi-

and p

re-cio

us st

ones

and

meta

ls, su

ch as

gol

d an

d sil

ver )

1•

One s

urve

y in

each

hub

• Inv

estm

ent p

rom

otion

plan

base

d on s

ur-ve

y for

each

valu

e cha

in ste

p

MoC

I, M

oMP

ACIM

1.4.

2. C

ondu

ct a f

easib

ility

study

to as

sess

the e

stabl

ishm

ent o

f a p

recio

us st

ones

pro

cess

ing ar

ea in

Kab

ul ( d

ue to

pr

oxim

ity to

qua

rries

and

air co

rrido

r fac

ilitie

s )1

• On

e fea

sibili

ty stu

dy d

evelo

ped

to e

val-

uate

the

esta

blish

men

t of a

pre

ciou

s sto

nes p

roce

ssing

cent

re in

Kabu

l

MoM

P, M

oCI,

priva

te se

ctor a

ssoc

iatio

ns

1.4.

3. S

ourc

e prec

ious

ston

es an

d m

etals

respo

nsib

ly an

d tra

nspa

rently

.

• Im

prov

e the

trac

eabi

lity o

f prec

ious

mate

rials

sour

cing

thro

ugh

bette

r cer

tifica

tion,

qua

lity c

ontro

l and

mark

eting

.•

Impr

ove e

nfor

cem

ent m

easu

res.

• En

cour

age t

he pr

ivate

secto

r to a

dopt

resp

onsib

le so

urcin

g stan

dard

s and

certi

ficati

ons (

e.g.

Res

pons

ible J

ewell

ery

Coun

cil ce

rtific

ation

) and

adeq

uate

labell

ing fo

r prec

ious

mate

rials

thro

ugh

tailo

red w

orks

hops

.•

Prov

ide

traini

ng a

nd te

chnic

al as

sistan

ce fo

r pro

duce

rs on

resp

onsib

le so

urcin

g sta

ndard

s an

d lab

elling

of p

re-

cious

ston

es an

d jew

eller

y pro

ducts

.

1•

Resp

onsib

le so

urcin

g lab

el int

rodu

ced t

o 10

% o

f ent

erpr

ises c

ertif

ied a

year

ANSA

, MoM

P, AC

IM, p

ri-va

te se

ctor a

ssoc

iatio

ns

1.4.

4. E

ncou

rage a

nd su

ppor

t esta

blish

men

t of c

ompa

nies t

hat b

uy m

achin

ery f

or o

ther

com

panie

s on

a lon

g-ter

m lo

an b

asis.

A p

ublic

–priv

ate p

artn

ersh

ip in

volvi

ng d

onor

s and

priv

ate co

mpa

nies w

ould

supp

ort t

his in

itia-

tive.

Cons

ider

mac

hine r

ental

s in

regio

nal h

ubs a

nd co

rpor

ate o

wner

ship

of e

xpen

sive m

achin

es b

y ass

ociat

ions

or

grou

ps o

f pro

duce

rs.

2•

List o

f com

panie

s tha

t buy

mac

hiner

y for

ot

her c

ompa

nies

MoC

I


43

Stra

tegi

c ob

ject

ive

2 : Im

prov

e th

e re

gula

tory

fram

ewor

k an

d in

frast

ruct

ural

sup

port.

Oper

atio

nal o

bjec

tives

Activ

ities

Prio

rity

1=hi

gh

2=m

ed

3=lo

w

Impl

emen

tatio

n pe

riod

Targ

ets*

Le

ad a

nd s

uppo

rting

im

plem

ente

rs

2017

2018

2019

2020

2021

2022

2.1.

Impr

ove

the

lega

l pr

oced

ures

for l

icen

sing

an

d pe

rmits

.

2.1.

1. C

oope

rate w

ith G

over

nmen

t ins

titut

ions

in o

rder

to im

prov

e the

ir co

ordi

natio

n.Cl

assif

y prec

ious

ston

es an

d jew

eller

y as a

scarc

ity ar

ea ( s

hort

and

med

ium te

rm ) t

o tri

gger

spec

ial su

ppor

t mea

s-ur

es b

y pub

lic au

thor

ities

. Esta

blish

a on

e-sto

p sh

op fo

r pro

duce

rs an

d ex

porte

rs to

obt

ain an

y per

mit

and

tariff

cle

aranc

es.

2

• On

e-sto

p sh

op is

ser

ving

all th

e pr

oduc

ers

and

expo

rters

of t

his

secto

r

MoC

IM

oMP

and

mun

icipa

li-tie

s, AC

IM

2.1.

2. C

larify

and

simpl

ify ta

xatio

n an

d fee

type

s and

pro

cedu

res.

Publ

ish in

form

ation

bro

chur

es an

d pa

mph

lets f

or re

levan

t stak

ehol

ders

to in

form

them

of l

egal

proc

edur

es.

Prov

ide m

inistr

ies w

ith w

ritten

feed

back

and

recom

men

datio

ns o

n rel

evan

t item

s in

orde

r to

incen

tivize

spec

ific a

c-tio

ns in

resp

onsib

le m

inistr

ies.

1

• Si

mpl

ified

fee

types

and

pro

ce-

dures

are d

ocum

ented

and

used

M

oF a

nd M

oCI

MoM

P, se

ctor a

dvoc

acy

com

mitt

ee, A

CIM

2.1.

3. P

rovid

e trai

ning

and

aware

ness

-raisi

ng in

itiati

ves t

o bo

th G

over

nmen

t and

the p

rivate

secto

r on

perm

its, t

axes

an

d fee

pro

cedu

res.

2•

One t

rainin

g ev

ery q

uarte

rM

oFM

oCI a

nd M

oMP,

ACIM

2.2.

Impl

emen

t the

M

iner

als

Law

and

mon

i-to

ring

of p

reci

ous

ston

es

extra

ctio

n an

d ex

port

( pre

vent

ing

smug

glin

g ).

2.2.

1. R

estri

ct un

prof

essio

nal m

ining

and

stim

ulate

serio

us im

plem

entat

ion

of th

e Mine

rals L

aw b

y the

Gov

ernm

ent.

Ident

ify b

est p

ractic

es to

pro

gres

sively

form

alize

artis

anal

and

small

-sca

le m

ining

in re

gion

al co

untri

es an

d als

o in

coun

tries

with

a sim

ilar c

ontex

t ( e.

g. C

olom

bia,

Mon

golia

and

the D

emoc

ratic

Repu

blic

of C

ongo

). En

gage

gem

stone

mine

rs ( fo

rmal

and

infor

mal )

and

com

mun

ity el

ders

in fu

rther

iden

tifyin

g m

easu

res to

ince

ntivi

ze

form

aliza

tion

of m

ining

, suc

h as

:

• Ec

onom

ic an

d so

cial i

ncen

tives

( e.g

. com

mun

ity p

artic

ipati

on in

reve

nues

, safe

ty fo

r mine

rs )

• As

sistan

ce w

ith n

ew te

chno

logy

• Te

chnic

al as

sistan

ce to

supp

ort f

orm

aliza

tion

Incor

porat

e rele

vant

mea

sures

in th

e Mine

ral La

w, cu

rrent

ly un

der r

evisi

on.

Deve

lop

and

form

alize

allia

nces

with

relev

ant i

nter

natio

nal i

nstit

utio

ns to

share

know

ledge

and

techn

ical a

ssist

ance

on

this

matt

er.

1

• By

202

0 m

ining

is fu

lly le

galiz

ed

MoM

P, AC

IMM

inistr

y of I

nter

ior A

ffairs

, Af

ghan

ite

2.2.

2. S

tream

line m

ining

lice

nces

and

ensu

re th

at all

mine

rs ob

tain

them

. Onl

y mine

rs wi

th li

cenc

es sh

ould

be a

l-lo

wed

to st

art m

ining

.Im

prov

e coo

rdina

tion

betw

een

MoM

P an

d th

e Mini

stry o

f Int

erio

r Affa

irs at

subn

ation

al lev

el.

1

• By

202

0 m

ining

is fu

lly le

galiz

edM

oMP,

sect

or a

dvoc

acy

com

mitt

eeM

inistr

y of I

nter

ior A

ffairs

, AC

IM2.

2.3.

Con

trol t

he b

orde

r to

Pakis

tan in

ord

er to

prev

ent s

mug

gling

and

recor

d nu

mbe

rs of

prec

ious

ston

es an

d jew

el-ler

y fur

ther

pro

cess

ed / w

ith va

lue a

dded

in P

akist

an.

Use i

nter

natio

nal m

edia

outle

ts in

orde

r to

remov

e the

imag

e of f

inanc

ing te

rroris

ts by

gem

stone

s ( es

pecia

lly la

pis )

.2

• Bo

rder

con

trol p

osts

estab

lishe

d on

each

main

rout

e to

Pakis

tanAf

ghan

Bor

der P

olic

e,

Cust

oms,

Mini

stry o

f Int

erio

r Affa

irs

2.2.

4. M

onito

r mine

s with

lice

nces

and

cont

rol q

ualit

y of m

ined

prec

ious

ston

es an

d m

etals

( e.g

. gol

d an

d sil

ver )

in Af

ghan

istan

.

• Inc

lude

civil

socie

ty in

mon

itorin

g th

eir co

ordi

natio

n an

d m

onito

ring

the i

mpl

emen

tatio

n of

the M

ineral

s Law

.•

Strat

egica

lly c

omm

unica

te th

e im

plem

entat

ion

of th

e M

ineral

s La

w an

d its

mon

itorin

g pr

oces

s to

the

inter

natio

nal

com

mun

ity.

1

• An

nual

mon

itorin

g rep

ort

MoM

P, AC

IM, s

ecto

r ad-

voca

cy c

omm

ittee

Mini

stry o

f Int

erio

r Affa

irs

* Ta

rget

s ar

e in

dica

tive

only

and

will

be

the

subj

ect o

f fur

ther

refin

emen

t at b

egin

ning

of t

he im

plem

enta

tion

man

agem

ent s

tage

. Sim

ilarly

, the

lead

an

d su

ppor

ting

impl

emen

ters

col

umn

rem

ains

indi

cativ

e be

caus

e im

plem

enta

tion

will

requ

ire c

olle

ctiv

e ef

forts

, so

addi

tiona

l ins

titut

ions

may

be

adde

d.

44


Stra

tegi

c ob

ject

ive

2 : Im

prov

e th

e re

gula

tory

fram

ewor

k an

d in

frast

ruct

ural

sup

port.

Oper

atio

nal o

bjec

tives

Activ

ities

Prio

rity

1=hi

gh

2=m

ed

3=lo

w

Impl

emen

tatio

n pe

riod

Targ

ets*

Le

ad a

nd s

uppo

rting

im

plem

ente

rs

2017

2018

2019

2020

2021

2022

2.3.

Impr

ove

acce

ss to

in

frast

ruct

ure.

2.

3.1.

Ena

ble a

cces

s to

land

and

prod

uctio

n sp

ace f

or sm

all p

rodu

cers

who

are n

ot ab

le to

get

bigg

er p

lots

in in-

dustr

ial p

arks.

Cons

ider

allo

catio

n wi

thin

cities

, esp

ecial

ly if

they

hav

e lig

ht in

dustr

ies su

ch as

jewe

llery

mak

ing an

d ge

msto

nes.

• Es

tablis

h a o

ne-s

top

shop

for l

and

and

prod

uctio

n sit

e reg

istrat

ion.

• Tra

in sta

ff at

MoC

I to

supp

ort S

MEs

to ac

cess

land

and

facili

tate t

he re

gistr

ation

pro

cedu

re.•

Publ

ish in

form

ation

on

avail

able

land

and

prod

uctio

n sit

es fo

r SM

Es o

nline

and

offl

ine ( w

ebsit

e, br

ochu

res, i

nfor-

mati

on b

oard

s, rad

io et

c. )

2

• On

e lo

catio

n in

eac

h pr

ovin

ce is

as

signe

d fo

r sec

tor p

rodu

cers

MoC

IPr

esid

ent’s

Offi

ce,

Afgh

anist

an In

depe

nden

t La

nd A

utho

rity,

MoF

2.3.

2. R

aise t

he aw

arene

ss o

f the

Gov

ernm

ent i

n or

der t

o im

prov

e acc

ess t

o ele

ctrici

ty.Co

mm

unica

te th

at er

ratic

acce

ss to

elec

tricit

y is a

seve

re inh

ibito

ry fac

tor f

or th

e sec

tor.

Repo

rt ho

w m

uch

electr

icity

is ne

eded

for e

ach

prod

uctio

n sta

ge.

Track

acce

ssib

ility

thro

ugho

ut a

certa

in pe

riod

to d

ocum

ent h

ow o

ften

acce

ss to

elec

tricit

y has

caus

ed h

urdl

es in

the

prod

uctio

n pr

oces

s.

2

• On

e rep

ort o

n ele

ctrici

ty us

age

of

the s

ecto

r Da

Afg

hani

stan

Bre

shna

Sh

erka

t

2.3.

3. Im

prov

e acc

ess t

o po

st of

fices

and

mail

ing se

rvice

s for

pac

kage

s in

diffe

rent s

izes i

n or

der t

o de

liver

pro

ducts

to

inter

natio

nal m

arkets

.St

rengt

hen

dom

estic

tran

spor

tatio

n m

odes

in o

rder

to su

bstit

ute t

ransp

ortat

ion

from

Pak

istan

as an

easie

r des

tinati

on

for s

hippi

ng o

f goo

ds to

inter

natio

nal m

arkets

.

1

• Fiv

e majo

r pro

vince

s’ po

st of

fices

are

fully

func

tiona

l by 2

020

Min

istry

of

Com

mun

icat

ions

and

In

form

atio

n Te

chno

logy

Pres

iden

t’s O

ffice

2.3.

4. S

uppo

rt th

e Mini

stry o

f Com

mun

icatio

ns an

d Inf

orm

ation

Tech

nolo

gy an

d Da

Afg

hanis

tan B

ank t

o fac

ilitat

e the

es

tablis

hmen

t of a

n e-

paym

ent p

latfo

rm.

• M

obili

ze te

chnic

al an

d fin

ancia

l sup

port

from

don

ors.

• Inv

estig

ate d

onor

and

partn

er co

untri

es fo

r im

plem

entat

ion

of an

e-pa

ymen

t plat

form

.•

Colle

ct be

st pr

actic

es an

d su

cces

sful c

ases

for i

ntro

ducti

on o

f e-p

aym

ent p

latfo

rms.

• De

velo

p th

e plat

form

bas

ed o

n tec

hnica

l sup

port

of p

artn

ers.

• La

unch

the

e-pa

ymen

t plat

form

by a

dver

tising

its o

ppor

tunit

ies an

d av

ailab

ility

to e

xpor

ters a

nd o

ther

stak

ehol

ders

of th

e sec

tor r

each

ing o

ut to

inter

natio

nal m

arkets

.

1

• By

the

end

of 2

018,

an

e-pa

y-m

ent p

latfo

rm is

fully

func

tiona

l in

Afgh

anist

an

Min

istry

of

Com

mun

icat

ions

and

In

form

atio

n Te

chno

logy

an

d Da

Afg

hani

stan

Ban

kM

oCI

2.4.

Sup

port

sect

or a

d-vo

cacy

and

lobb

y gr

oups

.2.

4.1.

Esta

blish

a jo

int ad

voca

cy co

mm

ittee

com

prisi

ng P

SU, F

ACT,

AWCC

I, AC

IM an

d AC

CI.

• Pr

ovid

e adv

ocac

y and

lobb

ying

traini

ng to

PSU

and

the c

omm

ittee

to en

hanc

e skil

ls.•

Orga

nize w

omen

-own

ed g

emsto

nes a

nd je

welle

ry pr

oduc

ers i

n a g

roup

.•

Prov

ide t

rainin

g of

fem

ale le

ader

s in

the s

ecto

r in

orde

r to

stren

gthe

n th

e pos

ition

of w

omen

in th

e sec

tor.

• Tra

in co

ache

s for

wom

en-to

-wom

en tr

aining

s in

leade

rship

and

busin

ess m

anag

emen

t by r

einfo

rcing

wom

en’s

ca-

pacit

ies in

fund

raisin

g an

d res

ourc

e m

obili

zatio

n, d

irecti

ng p

ublic

and

don

or fu

nds

towa

rds

key

issue

s fo

r wom

en

in th

e sec

tor.

1

• On

e full

y fun

ction

al ad

voca

cy co

m-

mitt

ee is

estab

lishe

d for

the s

ecto

r•

Thirt

y wo

men

fro

m K

abul

and

pr

ovin

ces

are

men

tore

d on

how

to

advo

cate

Orga

niza

tions

men

-tio

ned,

led

by A

WCC

IM

oCI

2.4.

2. A

ssig

n a c

omm

ittee

on

inter

natio

nal t

rade a

gree

men

ts an

d ot

her i

ssue

s of t

he S

trateg

y to

lobb

y and

advo

cate

for t

he se

ctor.

• Cr

eate

a stra

tegic

advo

cacy

plan

that

look

s int

o th

e im

plem

entat

ion

of th

e Stra

tegy a

nd re

sour

ce m

obili

zatio

n.•

Deve

lop a

well-

defin

ed do

cum

ent c

over

ing is

sues

cons

idered

in ag

reem

ents

that a

re ac

cept

able

at int

erna

tiona

l leve

ls.•

Star

t a jo

int tr

aining

for s

ecto

r lea

ders

and

MoC

I staf

f on

trade

agr

eem

ents,

in o

rder

to e

nsur

e th

at iss

ues

are fu

lly

unde

rstoo

d.•

Prep

are tr

aining

mate

rials

and

curri

culu

m.

• Ce

rtify

succ

essfu

l par

ticip

ants

in or

der t

o be

com

e foc

al po

ints f

or tr

ade a

gree

men

t iss

ues.

1

• Ac

hiev

emen

t of a

ll th

e str

ategi

c ob

jectiv

es o

f this

secto

r Stra

tegy

Orga

niza

tions

men

tione

d un

der t

he c

omm

ittee

se

ctio

n

http://en.wikipedia.org/w/index.php?title=Ministry_of_Communications,_Posts_and_Telegraphs_(Burma)&action=edit&redlink=1




45

Stra

tegi

c ob

ject

ive

2 : Im

prov

e th

e re

gula

tory

fram

ewor

k an

d in

frast

ruct

ural

sup

port.

Oper

atio

nal o

bjec

tives

Activ

ities

Prio

rity

1=hi

gh

2=m

ed

3=lo

w

Impl

emen

tatio

n pe

riod

Targ

ets*

Le

ad a

nd s

uppo

rting

im

plem

ente

rs

2017

2018

2019

2020

2021

2022

2.5.

Impr

ove

acce

ss

to q

ualit

y te

stin

g an

d ce

rtific

atio

n.

2.5.

1. Id

entif

y gap

s and

dev

elop

a plan

to es

tablis

h a l

ab fo

cusin

g on

the p

recio

us st

ones

and

jewell

ery s

ecto

r.

• Co

nduc

t fiel

d vis

its to

labo

rator

ies in

Jaip

ur an

d Sr

i Lan

ka to

abso

rb an

d ad

apt b

est p

ractic

es fo

r the

estab

lishm

ent

of la

borat

ories

in A

fgha

nistan

.•

Cond

uct a

feas

ibili

ty stu

dy fo

r the

estab

lishm

ent o

f lab

orato

ries t

o co

nduc

t qua

lity t

estin

g an

d iss

ue ce

rtific

ation

s.•

Asse

ss th

e inv

estm

ent /

cost

estim

ation

, inf

rastru

cture

and

techn

ical t

rainin

g ne

eded

, am

ong

othe

rs, in

cludi

ng g

eo-

grap

hical

poten

tial f

or o

perat

ions

.

1

• Fo

ur fe

asib

ility

study

repo

rts in

all

main

pro

ducti

on h

ubs

• Tw

o in

tern

atio

nal

field

vis

its

annu

ally

MoM

P, AN

SAAC

IM, M

oCI

2.5.

Impr

ove

acce

ss

to q

ualit

y te

stin

g an

d ce

rtific

atio

n.

2.5.

2. R

eview

the N

ation

al La

borat

ory P

olicy

and

the o

utco

me o

f the

feas

ibili

ty stu

dy / g

ap an

alysis

to ad

just

its sc

ope

to se

ctor-s

pecif

ic req

uirem

ents.

2•

All G

over

nmen

t lab

s co

vere

d by

th

e pol

icyAN

SA, M

oMP,

ACIM

2.5.

Impr

ove

acce

ss

to q

ualit

y te

stin

g an

d ce

rtific

atio

n.

2.5.

3. D

evelo

p a l

ab es

tablis

hmen

t plan

to su

ppor

t com

plian

ce w

ith m

anda

tory

and

buye

rs’ re

quire

men

ts in

targe

t m

arkets

.

• Re

cruit

and

train

staff

for t

he la

bs.

• Inv

estig

ate p

ossib

le lo

catio

ns fo

r lab

s in

main

hub

s.•

Asse

ss se

ctor n

eeds

in te

rms o

f qua

lity c

ontro

l in

orde

r to

deter

mine

the r

equir

ed ca

pacit

y for

lab

estab

lishm

ent.

1

• At

leas

t 20

tech

nica

l sta

ff ar

e tra

ined

for t

he fi

rst e

stabl

ishm

ent

of la

bs in

all f

our m

ain h

ubs

• Fo

ur

sect

or-s

peci

fic

labs

es

tablis

hed

• Pr

ovid

e at

leas

t 80 %

of t

ests

re-

quire

d fo

r prio

rity e

xpor

t pro

ducts

ANSA

, MoM

PAC

CI, A

WCC

I, AC

IM,

Inter

natio

nal C

ham

ber o

f Co

mm

erce

2.5.

4. S

uppo

rt es

tablis

hmen

t of a

nati

onal

labor

atory

netw

ork t

o pr

omot

e int

er-lab

orato

ry co

oper

ation

.3

• M

ost l

abs

( 70 %

) cov

ered

by

the

netw

ork

ANSA

MoM

P, AC

IM2.

5.5.

Esta

blish

inter

natio

nal s

tanda

rds f

or th

is se

ctor w

ith A

NSA.

• Pu

blish

info

rmati

on b

ookle

ts on

stan

dard

s for

pro

duce

rs an

d ex

porte

rs.•

Help

Afg

han

prod

ucer

s get

their

pro

cess

and

man

agem

ent c

ertif

ied b

ased

on

stand

ards.

1•

List o

f stan

dard

s pub

lishe

d AN

SAAW

CCI,

ACIM

, FAC

T and

PS

U

2.5.

6. R

eview

exist

ing se

ctor-s

pecif

ic law

s on

metr

olog

y and

dev

elop

regul

ation

s to

estab

lish

and

enfo

rce s

tanda

rds

of le

gal m

etrol

ogy a

nd re

gulat

e trad

e with

rega

rd to

weig

hts a

nd m

easu

res, a

nd en

forc

e the

legi

slatio

n.1

• Do

cum

ente

d se

t of s

ecto

r-spe

-ci

fic d

omes

tic re

gula

tions

and

sta

ndard

s

ANSA

2.5.

7. C

reate

dom

estic

stan

dard

s for

prec

ious

ston

es an

d jew

eller

y bas

ed o

n ex

isting

secto

r-spe

cific

laws,

regul

ation

s an

d int

erna

tiona

l stan

dard

s and

requ

irem

ents.

1•

Dom

estic

stan

dard

s crea

tedAN

SA

2.5.

8. Tr

ain A

NSA

and

priva

te se

ctor q

ualit

y cer

tifica

tion

com

panie

s’ sta

ff to

be a

ble t

o iss

ue ce

rtific

ates a

nd d

istin-

guish

han

dmad

e and

mac

hine-

mad

e pro

ducts

.1

• Fo

ur a

ware

ness

-raisi

ng in

itiati

ves

and

com

bine

d tra

inin

g se

ssio

ns

annu

ally

in e

ach

of th

e fo

ur m

ain

prod

uctio

n hu

bs

ANSA

, priv

ate se

ctor q

ual-

ity ce

rtific

ation

com

panie

s

2.5.

9. R

aise p

rodu

cers’

and

expo

rters’

aware

ness

of i

nter

natio

nal s

tanda

rds a

nd d

omes

tic st

anda

rds e

stabl

ished

for

the s

ecto

r. 2

• Tw

o qu

arte

rly a

ware

ness

-raisi

ng

works

hops

cond

ucted

AWCC

I, AC

IM, F

ACT

and

PSU

2.6.

Impr

ove

data

for t

he

sect

or.

2.6.

1. C

ollab

orate

with

the C

entra

l Stat

istics

Offi

ce an

d ot

her r

eleva

nt o

rgan

izatio

ns in

ord

er to

capt

ure d

ata o

n pr

o-du

cers,

mine

rs, m

ines,

prod

uctio

n hu

bs, w

orks

hops

, thr

ough

a de

tailed

surve

y of t

he se

ctor o

perat

ions

. This

activ

ity

will

have

the a

im o

f gett

ing a

bette

r pict

ure a

nd g

reater

ove

rview

of t

he p

recio

us st

ones

and

jewell

eries

secto

r.Im

prov

e the

avail

abili

ty of

data

on

the s

ecto

r to

facili

tate g

ap an

alysis

/ nee

ds an

alysis

and

impa

ct m

easu

remen

t of a

c-tiv

ities

thro

ugh

the p

ublic

ation

of a

com

preh

ensiv

e data

base

in th

e MoM

P’s w

ebsit

e.

1

• Co

mpr

ehen

sive d

ataba

se av

ailab

le th

roug

h th

e MoM

P’s w

ebsit

eM

oMP,

MoC

I and

Cen

tral

Stat

istic

s Of

fice

46


Stra

tegi

c ob

ject

ive

3 : C

reat

e an

d pr

omot

e an

Afg

han

prec

ious

sto

nes

and

jewe

llery

bra

nd.

Oper

atio

nal o

bjec

tives

Activ

ities

Prio

rity

1=hi

gh

2=m

ed

3=lo

w

Impl

emen

tatio

n pe

riod

Targ

ets*

Lead

and

sup

porti

ng

impl

emen

ters

2017

2018

2019

2020

2021

2022

3.1.

Rei

nfor

ce n

atio

nal

trade

and

inve

stm

ent

supp

ort i

nstit

utio

ns’ a

nd

sect

or a

ssoc

iatio

ns’

mar

ket i

ntel

ligen

ce.

3.1.

1. H

elp P

SU es

tablis

h a s

ystem

that

colle

cts an

d di

ssem

inates

info

rmati

on to

expo

rters

regul

arly.

• Ins

titut

iona

lize

the

use

of d

istan

ce le

arni

ng s

uppo

rt se

rvice

s on

mar

ket a

nalys

is by

trad

e an

d in

vestm

ent

supp

ort i

nstit

utio

ns.

• Co

nduc

t a m

arket

analy

sis o

f targ

et m

arkets

’ pot

entia

l for

Afg

han

prec

ious

ston

es an

d ha

ndm

ade j

ewell

ery.

1•

One r

epor

t per

targ

et m

arket

AWCC

I, AC

IM, F

ACT

and

PSU

MoC

I, an

inter

natio

nal r

esea

rch

com

pany

that

has e

xper

ience

in th

e se

ctor,

the s

ecto

r ass

ociat

ions

3.1.

2. S

treng

then

acce

ss to

the i

nter

natio

nal p

recio

us st

ones

and

jewell

ery n

etwor

k.

• Ro

ll ou

t a ca

pacit

y-bu

ilding

prog

ramm

e aim

ed at

trad

e rep

resen

tative

s, di

plom

ats an

d man

ager

s of o

verse

as

trade

offi

ces t

o en

able

them

to p

rovid

e be

tter a

dvice

to S

MEs

and

to p

repare

a rep

ort o

n op

portu

nities

and

the f

easib

ility

of ex

porti

ng a

selec

ted p

rodu

ct to

a tar

get m

arket.

• Tra

in co

mm

ercial

atta

chés

to b

uild

their

know

ledge

of t

he s

ecto

r so

they

can

pro

vide

nece

ssary

sup

port

to

Afgh

an ex

porte

rs.

2•

One a

nnua

l ses

sion w

ith em

bass

ies

in co

untri

es w

ith po

tentia

l mark

ets

for t

his se

ctor

• Tw

o tra

ining

s per

year

for a

ttach

és

AWCC

I, AC

IM, F

ACT

and

PSU

3.2.

Impr

ove

wom

en

prod

ucer

s’ a

cces

s to

m

arke

ts.

3.2.

1. Tr

ain w

omen

pro

duce

rs to

acce

ss d

omes

tic an

d int

erna

tiona

l mark

ets.

• An

alyse

the

role,

activ

ities

and

reach

of A

fgha

n as

socia

tions

des

igne

d to

enh

ance

the

role

of w

omen

in th

e co

untry

’s ec

onom

ic lif

e.•

Help

wom

en p

rodu

cers

to ru

n pu

blic

shop

s, at

least

in Ka

bul,

and

ensu

re th

eir sa

fety.

• De

velo

p sp

ecifi

c exp

ort-r

eady

capa

city-

build

ing ac

tiviti

es fo

r wom

en.

• En

sure

wom

en’s

parti

cipati

on in

exp

ort-r

eady

pro

gram

mes

by

alloc

ating

a n

umbe

r of s

eats

to w

omen

and

pr

omot

ing th

eir p

artic

ipati

on th

roug

h th

e di

fferen

t bus

iness

ass

ociat

ions

and

by

deve

lopi

ng a

n aw

arene

ss-

raisin

g ca

mpa

ign.

1•

Thirt

y wo

men

bus

ines

ses

from

th

ree

prov

ince

s ar

e ab

le to

ac-

cess

buy

ers

AWCC

Im

unici

palit

ies an

d M

oCI

3.3.

Impr

ove

mar

ket

links

and

vis

ibili

ty ( e

s-pe

cial

ly fo

r han

dmad

e pr

oduc

ts ).

3.3.

1. E

stabl

ish A

fgha

n pr

ecio

us st

ones

and

jewell

ery s

howr

oom

s in

cities

with

pot

entia

l ( ac

cord

ing to

secto

r ac

tors,

in th

e Unit

ed K

ingdo

m, I

taly a

nd G

erm

any )

.

• Co

llect

infor

mati

on o

n ex

isting

inter

natio

nal s

howr

oom

s and

exhib

ition

s.•

Orga

nize p

artic

ipati

on b

ased

on

a mark

eting

plan

.•

Deve

lop

mate

rials

for b

randi

ng an

d ad

verti

sing

of A

fgha

n pr

ecio

us st

ones

and

jewell

ery t

o be

han

ded

out a

t th

e sho

wroo

m /

exhib

ition

s.•

Train

attac

hés f

or ea

ch ex

hibiti

on to

hav

e a g

ood

mark

et un

derst

andi

ng o

f the

hos

t cou

ntry.

1•

Thre

e sh

owro

oms

outs

ide

Afgh

anist

an fu

nctio

nal

PSU,

AW

CCI,

ACIM

MoC

I, M

inistr

y of F

oreig

n Af

fairs

3.3.

2. E

nsur

e grea

ter p

artic

ipati

on in

inter

natio

nal t

rade f

airs t

o en

able

expo

rters

to m

eet i

nter

natio

nal b

uyer

s an

d str

engt

hen

the v

isibi

lity o

f Afg

han

com

panie

s.

• Or

ganiz

e trad

e mee

ts th

at wi

ll be

leve

raged

to p

rom

ote A

fgha

n ex

ports

.•

Prom

ote l

ocal

prod

ucts

thro

ugh

inter

natio

nal t

rade f

airs.

• Or

ganiz

e bila

teral

trade

facil

itatio

n fo

rum

s to

deve

lop

mark

et lin

ks.

• Tra

in M

oCI s

taff t

o ad

voca

te be

tter f

or se

ctor w

hen

nego

tiatin

g ag

reem

ents

at th

e int

erna

tiona

l lev

el

2•

Incre

ased

num

ber o

f int

erna

tiona

l tra

de fa

irs at

tende

d•

Increa

sed

num

ber o

f par

ticip

ating

co

mpa

nies

• M

oCI s

taff t

rain

ed o

n in

terna

tion-

al n

egot

iatio

ns a

nd a

gree

men

ts tw

ice a

year

MoC

I, AC

IM, P

SU, A

WCC

I

3.3.

3. H

elp p

rodu

cers

deve

lop

mark

eting

plan

s, wi

th co

nsid

erati

on o

f ava

ilabl

e too

ls an

d gu

ideli

nes.

• Tra

in fir

ms t

o sus

tain e

xistin

g bu

yer–

selle

r rela

tions

hips /

mut

ual t

rust

and

prov

ide t

rainin

g on

mark

eting

and

after-

sales

servi

ces,

digi

tal m

arketi

ng an

d on

line p

rom

otio

n, p

rom

otio

nal m

ateria

ls, et

c.•

Prov

ide t

rainin

g to b

uild t

he ca

pacit

y of S

MEs

to pr

oduc

e bus

iness

plan

s, fin

ancia

l plan

s, an

d sale

s and

mar-

ketin

g pl

ans i

n or

der t

o ac

cess

inter

natio

nal m

arkets

.

1•

Digi

tal m

arke

ting

plan

tem

plate

, to

ols a

nd g

uideli

nes a

vaila

ble

PSU

AWCC

I, AC

IM

* Ta

rget

s ar

e in

dica

tive

only

and

will

be

the

subj

ect o

f fur

ther

refin

emen

t at b

egin

ning

of t

he im

plem

enta

tion

man

agem

ent s

tage

. Sim

ilarly

, the

lead

an

d su

ppor

ting

impl

emen

ters

col

umn

rem

ains

indi

cativ

e be

caus

e im

plem

enta

tion

will

requ

ire c

olle

ctiv

e ef

forts

, so

addi

tiona

l ins

titut

ions

may

be

adde

d.


47

Stra

tegi

c ob

ject

ive

3 : C

reat

e an

d pr

omot

e an

Afg

han

prec

ious

sto

nes

and

jewe

llery

bra

nd.

Oper

atio

nal o

bjec

tives

Activ

ities

Prio

rity

1=hi

gh

2=m

ed

3=lo

w

Impl

emen

tatio

n pe

riod

Targ

ets*

Lead

and

sup

porti

ng

impl

emen

ters

2017

2018

2019

2020

2021

2022

3.4.

Impr

ove

Afgh

anis

tan’

s re

puta

-tio

n an

d pr

esen

tatio

n in

in

tern

atio

nal m

arke

ts.

3.4.

1. O

rgan

ize b

rand

aware

ness

wor

ksho

ps o

n ho

w th

e int

erna

tiona

l rep

utati

on o

f a co

mpa

ny o

r sec

tor c

an

be im

prov

ed. L

earn

bes

t prac

tices

on

bran

d str

ategy

, des

ign

and

impl

emen

tatio

n, an

d ad

aptin

g to

the s

ecto

r an

d m

arket.

2•

At le

ast tw

o bran

d awa

renes

s wor

k-sh

ops o

rgan

ized e

ach y

ear i

n main

pr

ovinc

es

MoC

I–EP

AA, A

CIM

, ACC

I, AW

CCI,

ICC,

secto

r ass

ociat

ions

3.4.

2. C

oord

inate

servi

ces o

ffered

by A

fgha

n pr

ecio

us st

one a

nd je

welle

ry tra

de an

d inv

estm

ent s

uppo

rt ins

ti-tu

tions

and

priva

te se

ctor p

rovid

ers t

o es

tablis

h a j

oint

nati

onal

prog

ramm

e on

bran

ding

, pro

mot

ion,

mark

et-ing

and

labell

ing o

f pro

ducts

. The

obj

ectiv

e is t

o rai

se fi

rms’

aware

ness

; pro

vide c

ompl

ete in

form

ation

abou

t av

ailab

le se

rvice

s, ad

vice a

nd su

ppor

t ; an

d inc

rease

the v

isibi

lity a

nd im

prov

e the

visu

al as

pect

of A

fgha

n pr

ecio

us st

ones

and

jewell

ery.

Unive

rsitie

s and

cons

ultin

g fir

ms s

houl

d be

invo

lved.

Deve

lop

mark

eting

and

bran

ding

tool

s, e.g

. web

site,

leafle

ts, b

roch

ures

, cata

logu

es an

d a m

onth

ly m

agaz

ine.

1•

Map

ping s

ervice

prov

ider i

denti

fied

• Ef

fect

ive

use

of b

rand

ing

by

oper

ators

• Jo

int

natio

nal

prog

ram

me

on

bran

ding

estab

lishe

d

MoC

I–EP

AA, A

CIM

, ACC

I, AW

CCI,

ICC,

secto

r ass

ociat

ions

, ent

repre-

neur

s gro

up

3.4.

3. P

rovid

e trai

ning

and

capa

city-

build

ing o

rgan

ized

aroun

d di

fferen

t mod

ules

( cor

porat

e bran

ding

, col

lec-

tive b

rand

man

agem

ent,

labell

ing, p

acka

ging

, qua

lity m

anag

emen

t, tra

ceab

ility,

etc.

). M

odul

es ca

n be

dev

el-op

ed o

n an

incr

emen

tal b

asis

with

new

one

s bein

g ad

ded

over

tim

e, de

pend

ing o

n de

man

d.

1•

At le

ast t

wo tr

ainin

g wo

rksh

ops

orga

nize

d ea

ch y

ear

in m

ain

prov

inces

MoC

I–EP

AA, A

CIM

, ACC

I, AW

CCI,

ICC

3.4.

4. P

rovid

e spe

cific

advis

ory s

ervic

es to

secto

r ass

ociat

ions

and

selec

ted S

ME

cluste

rs in

the p

recio

us

stone

s and

jewe

llery

indus

try.

• As

sess

firm

s’ br

and

com

mun

icatio

ns an

d th

e stre

ngth

of t

heir

valu

e pro

posit

ion

to cu

stom

ers.

• Te

st th

e dem

and

for p

rodu

cts w

ith re

al cu

stom

ers a

nd p

rofes

siona

l buy

ers.

• De

sign

pack

aging

that

corre

spon

ds to

mark

et req

uirem

ents

and

show

s the

pro

duct

to it

s adv

antag

e.•

Bran

d aw

arene

ss : l

earn

bes

t pra

ctice

s on

bra

nd s

trateg

y, de

sign

and

impl

emen

tatio

n, a

dapt

ed to

the

sec-

tor a

nd m

arket.

• Br

and

plan

: stru

cture

a plan

that

is us

ed to

dev

elop

desig

ns, c

omm

unica

tions

and

prod

ucts.

• Br

and

kit : d

esig

n an

d pr

oduc

e the

mark

eting

colla

teral

asso

ciated

with

the b

rand

desig

n.

1•

Sect

or-sp

ecifi

c ad

visor

y se

rvice

s es

tablis

hed

• On

e uniq

ue b

rand

aware

ness

plan

MoC

I–EP

AA, A

CIM

, ACC

I, AW

CCI,

ICC

3.4.

5. D

evelo

p a s

et of

self-

learn

ing co

urse

s and

mate

rials

tailo

red to

the p

recio

us st

ones

and

jewell

ery s

ec-

tor t

hat c

ompa

nies c

an u

se to

educ

ate th

emse

lves o

n th

e im

porta

nce o

f bran

ding

and

how

to ef

fectiv

ely b

rand

their

offe

rings

, esp

ecial

ly in

inter

natio

nal m

arkets

.

2•

Self-

learn

ing co

urse

s and

mate

rials

deve

lope

d an

d us

edM

oCI–

EPAA

, ACI

M, A

CCI,

AWCC

I, IC

C

Photo: ITC

[ REFERENCES ]

49

REFERENCES

ACCI ( 2014 ). Business Policy Recommendations. Afghanistan National Business Forum, 27 February.

Afghanistan, Central Statistics Organization ( 2017 ). Year Book 1395 ( 2016–2017 ).

Afghanistan, Ministry of Commerce and Industries ( 2009 ). Afghanistan SME Development Strategy.

Afghanistan, Ministry of Industry and Commerce and Ministry of Mines and Petroleum ( 2014 ). Implementing the SME Strategy : An Updated Action Plan for Developing Afghanistan’s Gemstone and Jewellery Industry December 2014–November 2017.

Afghanistan, Ministry of Labour, Social Affairs, Martyrs and Disabled ( 2009 ). Baseline Data for the Quality of TVET Provision in Afghanistan. National Skills Development Programme.

Afghanistan, Ministry of Mines and British Geological Survey ( 2007 ). Minerals in Afghanistan – Gemstones of Afghanistan. Available from www.bgs.ac.uk / afghanminerals / docs / gemstones_a4.pdf.

Afghanistan Research and Evaluation Unit ( 2006 ). Going to Market : Trade and Traders in Six Afghan Sectors.

Centre for the Promotion of Imports from Developing Countries. Through what channels can you get jewellery onto the European market? Available from https : / / www.cbi.eu / market-information / jewellery / channels-segments /

Euromonitor International ( 2017 ). Jewellery in China. Available from www.euromonitor.com / .

Euromonitor International ( 2017 ). Jewellery in India. Available from www.euromonitor.com / .

Euromonitor International ( 2017 ). Jewellery in Switzerland. Available from www.euromonitor.com / .

Euromonitor International ( 2017 ). Jewellery in the United Kingdom. Available from www.euromonitor.com / .

Euromonitor International ( 2017 ). Jewellery in the United Arab Emirates. Available from www.euromonitor.com / .

Euromonitor International ( 2017 ). Jewellery in the USA. Available from www.euromonitor.com / .

Food and Agricultural Organization of the United Nations ( 2015 ). Empowering Women in Afghanistan – Reducing Gender Gaps through Integrated Dairy Schemes. Rome.

Ghiasy, Richard ; Zhou, Jiayi and Hallgren, Henrik ( 2015 ). Afghanistan’s Private Sector : Status and Ways Forward. Stockholm International Peace Research Institute and International Council of Swedish Industry.

Harakat Investment Climate Organization and ACCI ( 2014 ). Private Sector Priorities for Reform for London Conference.

International Labour Organization ( 2015 ). Selecting the Road to More and Better Jobs : Sector Selection Report of the Road to Jobs Project in Northern Afghanistan.

Islamic Republic of Afghanistan ( 2008 ). Afghanistan National Development Strategy.

ITC ( 2017 ). Reconnecting Afghanistan to global markets – an ITC assessment of export potentials and trade obstacles ( unpublished ).

ITC ( 2016 ). Enhance export capacities of Asia’s least de-veloped countries for intraregional trade – Afghanistan’s exports to China ( unpublished ).

ITC ( 2017 ). Trade Map. Available from www.trademap.org / Index.aspx. Accessed 20 November 2017.

McColm & Company ( 2015 ). Case study : Accelerating value chain development in Afghanistan’s gemstone jewelry sec-tor. Available from www.mccolmandco.com / insights / -accel-erating-quality-jewelry-production-in-kabul.

Turquoise Mountain ( 2017 ). Turquoise Mountain Lookbook. Available from ht tp : / / turquoisemountain.org / up-loads / PDFs / Turquiose-Mountain-Lookbook-copy.pdf.

World Bank ( 2016 ). Afghanistan – Systematic Country Diagnostic. Washington, D.C.

World Bank ( 2016 ). Regional trade & transit : opportunities and challenges for Afghanistan. Background Technical Brief. Washington, D.C.



http://www.euromonitor.com/






http://www.trademap.org/Index.aspx

http://www.trademap.org/Index.aspx



http://turquoisemountain.org/uploads/PDFs/Turquiose-Mountain-Lookbook-copy.pdf

http://turquoisemountain.org/uploads/PDFs/Turquiose-Mountain-Lookbook-copy.pdf

50


World Bank ( 2015 ). Afghanistan – Country Snapshot. Washington, D.C.

World Bank ( 2012 ). Afghanistan Diagnostics Trade Integration Study. Washington, D.C. Available from http : / / documents. worldbank.org / curated / en / 373301467992809220 / Afghanistan-diagnostics-trade-integration-study.

World Bank ( 2004 ). Transitional Islamic State of Afghanistan : Mining as a Source of Growth. Report No. 28231-AF. Available from http : / / documents.worldbank.org / curat-ed / en / 834271468740652641 / pdf / 282310AF.pdf.

http://documents.worldbank.org/curated/en/373301467992809220/Afghanistan-diagnostics-trade-integration-study



http://documents.worldbank.org/curated/en/834271468740652641/pdf/282310AF.pdf

http://documents.worldbank.org/curated/en/834271468740652641/pdf/282310AF.pdf

FSC is an independent, non-governmental, not for profit organization established to promote the responsible management of the world´s forests.

Printed by ITC Digital Printing Service on FSC paper, which is environmentally-friendly paper (without chlorine) using vegetable-based inks. The printed matter is recyclable.

Street address: ITC 54-56, rue de Montbrillant, 1202 Geneva, Switzerland

Postal address: ITC Palais des Nations, 1211 Geneva 10, Switzerland

Telephone: +41-22 730 0111 Fax: +41-22 733 4439E-mail: [email protected]: www.intracen.org

This project is funded by the European Union:

ADVANCING AFGHAN TRADEEU Trade-Related Assistance

In collaboration with:

AFGH

ANISTAN

• NATIO

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RT STRATEG

Y - PRECIOUS STONES AND JEW

ELLERY SECTOR •

2018-2022

precious stones and jewellery sector · figure 4 : trade balance, top 10 importers of precious...

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