Q & A industry Launch Strategic Plan

Q. What is the main message of the Diamond Masterplan? A. The Antwerp diamond trade has a new growth strategy. Based on unity, transparency and leadership, we will build on our strengths and develop our potential. We are making a commitment to much closer cooperation with Belgian business and full integration into Belgian society. Q. Is the Antwerp diamond industry in decline? A. Like many other industries, the Antwerp diamond sector has consolidated over the last decades, with many jobs, especially in diamond polishing, moving to low-cost centres. However, based mainly on trading, sorting and distribution, our sector had a record turnover of US$56.5 billion last year. Our sector is totally committed to Antwerp and to more than 30,000 people directly and indirectly employed. A great number of people benefit from our market being in Antwerp. Q. What can be done? A. Our aim is to consolidate our position as the worlds leading diamond trading centre and grow our business in rough and polished diamonds - actively exploiting new business, new technologies and new markets. Q. Is the Diamond Masterplan realistic? A. We examined our business and the global market and developed a credible, implementable strategy. This is a comprehensive project. It is not a dream or blue-sky plan. The Diamond Masterplan is actionable and has already been integrated into AWDCs short and long-term planning. Q. When will we see results? A. Several projects have already commenced and are showing excellent results! For example, our efforts to open new markets such as China, Fusion Four, where the four Antwerp Diamond bourses have agreed to share facilities and do more in closer cooperation, the MAS diamond pavilion, appointment of a compliance officer and others.

Caroline De Wolf caroline.de.wolf@awdc.be

Q. How did Project 2020 start? A. Provincial Governor Cathy Berx took note of the serious concerns stakeholders had about the future of the business. This led to the formation of a Steering Committee and the shaping of a framework for the Masterplan. Governor Berx hosted a series of discussions at the Provinciehuis and was regularly briefed so that she could follow progress. Q. Why did Governor Berx become a champion of the project? What has her role been? A. Governor Berx is concerned about the future of the diamond market with thousands of peoples livelihoods impacted by the sector and the reputation of Antwerp, city of diamonds. Cathy Berx has been an extremely constructive proponent of change and for the sector moving forward. She told the sector The Province can facilitate the process, but you own it and you must manage it. Q. In the past, unity has been an issue in the sector. Is this project supported by all Antwerp diamond stakeholders? A. Many local diamond people were involved in the development of this project - this in itself ensured a high level of support. Groups of 10 -15 people met regularly for a total of around 50 sessions. These Workgroups discussed relevant issues and developed ideas which were presented to the Steering Committee and AWDC for comment and approval. An essential aspect of the Project 2020 Masterplan has been to achieve the buy-in of all those affected by our plans. Q. Do you expect an impact outside Antwerp, on the wider global diamond industry? A. Certainly. The commercially driven initiatives in rough and polished diamond business will impact the international market. Indeed, it is the aim of our strategy to grow Antwerps role, influence and leadership in the global diamond business. Q. The Masterplan talks about new jobscan you guarantee jobs will be created? A. We have developed bold but workable ideas by looking at specific areas and examining ways of realistically increasing business. We believe our job creation forecasts are in fact quite modest. If our plans work out well, some projects could do much better than predicted. The Masterplan includes new niches and ways of invigorating old-established parts of the business, opening up the way to job creation in different areas. We prefer to under-promise and over-deliver!

Q. The Masterplan talks about Belgian inter-sector cooperation. How will the sector add tangible value to other Belgian businesses? A. Our Door-opener strategy for Belgian business offers access to our networks and contacts around the world. We will happily open up our connections and synchronise with other Belgian sectors to see what scope there is to introduce Belgian products and services around the world. Our plan is to start with Antwerps key businesses. Other projects where value is created for all involved parties are the Mercator Scholarship Fund and a much closer inter-sector dialogue through annual meetings for all key Antwerp sectors, co-sponsored by the diamond sector.

Caroline De Wolf caroline.de.wolf@awdc.be

Q. What about diamonds and tourism? A. Our discussions with Tourism Antwerp and Tourism Flanders confirm the strong potential to grow the Antwerp / Flanders economy through much closer strategic cooperation between tourism and diamonds. This will lead to an enhanced appeal of Antwerp, Flanders and Belgium as a tourist destination. Antwerp HORECA, fashion, art & culture, retail, design and diamonds will all benefit. Q. The Masterplan promotes community integration. How will you achieve this, with the different Indian, Jewish, Lebanese and other groupings? A. Dont forget our world-class Flemish polishers, entrepreneurs, merchants and R&D scientists in Antwerp! Our diversity is a huge plus and is characteristic of a true global hub. Cultural diversity strengthens entrepreneurship and business it is a major asset. The integration of the diamond sector into the broader community will strengthen the enormous appeal and success of Antwerp as a cosmopolitan dynamic society. Q. Which projects will make this happen? A. Initiatives such as the new Visitor Centre, Antwerp Diamond Days and the Mercator Scholarship, amongst others, will help create a new atmosphere and a far better understanding of what our diamond community is all about. Together, the sector, city and province can celebrate diversity, at the same time lifting the veil of secrecy around diamonds.

Q. What will it take to revitalise Antwerp as the world leader in diamonds? A. We need a workable, appropriate legal and fiscal base for operating in Antwerp if we are to stabilise our business, increase jobs, and contribute to the economies of Antwerp and Flanders. For this, we absolutely need the full support of the Belgian Government. With a secure and predictable legal and fiscal operating environment, we can go forward and implement our growth strategy, bringing back business lost in recent years and develop new business opportunities.

Q. Will there be budgets for the Masterplan projects? How will implementation work? A. One key aspect of the Masterplan is that all the projects included in the final plan were approved by AWDC, - after evaluating the budget, available personnel and resources required. Where AWDC judged funds or personnel will only be available in the medium or longer term, the projects are classified as such.

Caroline De Wolf caroline.de.wolf@awdc.be

Q. The sector has for some time suffered negative publicity - is the Diamond Masterplan just a way to deal with bad publicity? A. Absolutely not! The bad publicity almost exclusively relates to past events. The sector wants these issues to be dealt with rapidly and pragmatically. On the other hand, the Diamond Masterplan is a determined new initiative to grow the sector and our markets role in the global diamond jewellery business. Automatically this will expand our contribution to the Belgian economy, to increase jobs and clearly demonstrate our commitment to Antwerp and to Belgium.

Q. The sector talks about competitive fiscal conditions, whilst the man in the street is paying more taxes isnt this a contradiction.? A. It is no secret that labor and employment costs are far higher in Belgium than in emerging markets, in fact they are higher than in many other parts of the developed world. Every Belgian business has to confront that. Sector after sector in Belgium has shrunk or disappeared. We are still here. Last year we recorded US$56.5 billion in turnover, and a major contribution to the economy of Belgium. This is a testimony to the calibre of our diamond cluster and to our position in the global diamond pipeline. We are however under threat. To move forward, we must deal with the past and establish a solid operating climate in the future. The sector needs a transparent and competitive fiscal framework that will allow all relevant stakeholders to do their business here in Antwerp. At least four other locations, India, Dubai, Tel Aviv and Botswana, are today competing for our business. We absolutely want to be in business in Antwerp. So we need to position ourselves for the future in a realistic and fully compliant way. Today in Antwerp we still host in our diamond streets all the worlds largest diamond mining companies, alongside a host of other important industry players. This is an enviable position to which needs to be protected and strengthened.

Q. And in the years up to 2020? A. Our proposal is, we stay, we grow, we increase jobs, we develop new business and niches, we team with Belgian business, and we expand, in a measurable, fully compliant and meaningful way, our contribution to the Antwerp and Belgian economy.

Caroline De Wolf caroline.de.wolf@awdc.be