The Latin American region includes no less than 20 countries as well as 23 well-inhabited islands, with an overall population of 650 million. The volume of business in the diamond and diamond jewelry sectors currently stands at $7 billion. No less than 200 million make up a solid middle class in booming Latin American economies that are well accustomed to buying fine jewelry, as opposed to the emerging middle classes in India and China, which are not yet mature.
Doesn’t it sound like a veritable gold mine – or should we say diamond mine? It certainly did to Erez Akerman, President of the Panama Diamond Exchange (PDE). Akerman is a multi-national diamantaire who has lived in the United States, Israel and for the past three years – Panama. “My settling in Panama was a happy mistake,” admits Akerman with a smile.
Panama sounds like a little piece of heaven. Akerman describes Panama City as a crime-free resort town with beach resorts, casinos and deluxe hotels. And as far as financial activity is concerned, it is a businessman’
The idea to form a diamond exchange in Panama came to Akerman and other diamantaires from countries in the region such as Brazil, Chile, Costa Rica, and the Caribbean Islands three years ago. Akerman elaborates: “Panama is already a hub, a distribution country for all sorts of commercial activity and travel. It made sense to turn it into a hub for the world diamond industry as well.”
Some 12,000 fine jewelry stores exist in the region, over half the number in the United States. The rising demand for diamond jewelry is being felt by dealers in the entire region.
The fledgling PDE was recently accepted as a member of the World Federation of Diamond Bourses (WFDB). The country’s Vice President and Foreign Minister, Samuel Lewis Navarro, is currently involved in talks regarding Panama’s application for membership in the Kimberley Process.
“The Panamanian government is very supportive of the country’s new diamond exchange. It is aiding the PDE in its talks with various governments regarding trade agreements,”
He continues: “The new financial district around the PDE will include 15-20 high-rise buildings. Our development teams are travelling all over the world to learn all of the important elements involved in the complex’s planning. That is one of the reasons that we are visiting the Israel Diamond Exchange. It is the perfect role model for us.”
Akerman is also visiting the Israel Diamond Exchange in order to draft a joint trade agreement. “The leadership of the PDE is mainly Israeli,” says Akerman. “Our Israeli born Executive Director, Haviv Aviad, has 30 years of experience in the field of diamonds and jewelry. Our team is closely connected to Israeli diamantaires and is well acquainted with the needs of the Israeli Diamond Industry.”
He notes that Panama is the ideal location for a world diamond industry hub. “Buyers from all over Latin America will no longer have to face the hassle of acquiring visas for the United States. They can take a short flight to Panama, spend the day and head for home.”
He stresses: “Accessibility is the name of the game. Commercially we are talking about one huge market. Panama is the ideal meeting place with excellent shipping possibilities.”
International companies will find it easy to set up offices in Panama, but prior to that good use can be made of the Internet. A good deal of sales logistics can and is already being arranged via the web.
Akerman has high hopes for the future: “I believe we will double the trade in 4 to 5 years to $14 billion. We want to attract the right institutions and services including gemological laboratories. We plan to create a database of all of the jewelry stores in the entire region as well as 2 educational centers. And we intend to develop a comprehensive website which will provide a news service about the region which currently does not exist there.”
It seems like the opportunities in Latin America are infinite and "manana" just may be too late.
