ISRAEL & AFRICA: BENEFITS FROM STRONGER ECONOMIC RELATIONS

This study explores the potential benefits of strengthening economic relations between Israel and Africa. Conducted by the Menomadin Foundation and Oxford Economics, the research reveals that while Israel's ties with African countries are generally limited, closer economic cooperation could be advantageous for all parties involved.

Broader ties between Israel and African countries are limited in general, but this does not mean that closer economic cooperation and relations will be without any advantages. This is the main objective of this study, to investigate the potential benefits that may stem from stronger economic relations between Israel and Africa.  

Firstly, the current economic relations between Israel and Africa are examined, considering factors such as trade, investment, the diaspora and development aid flows. 

The next step involves identifying Israel’s core business competencies and economic strengths. Israel’s economy is underpinned by a strong entrepreneurial ecosystem and a highly educated and skilled workforce. 

These fundamental factors have seen the country develop world-class capabilities in areas such as in energy, water, agriculture, information and communication technology, as well as in digital approaches to healthcare and education. 

These ‘focus areas’ are dissected in more detail to identify more granular areas of Israeli expertise. Aside from these more granular thematic areas, some of Israel’s more overarching strengths are also assessed, referring to the country’s expertise in Smart Cities, Israel’s innovative and entrepreneurial ecosystem and the country’s ability to identify innovative financing solutions. Having identified Israel’s key relevant strengths that complement Africa’s weaknesses, the next step involves an investigation into whether these strengths can be leveraged to help overcome critical issues the African continent is faced with. 

The aim is to ascertain whether these problematic ‘areas’ indeed exist in an African context and if so, determine the magnitude of the problem. The assessment also incorporates country-specific case studies, to better illustrate examples of where countries either have significant challenges or where markets may offer opportunities in terms of benefitting from learnings, innovations, finance, and services from abroad. 

Having established areas where Israel’s core strengths and competencies could be leveraged to help overcome critical development issues in many African countries, the focus then shifts to an investigation regarding how all parties involved could benefit from closer cooperation and stronger economic ties. 

The study then concludes by considering some of the challenges and risks which may constrain the actualisation of partnerships and closer economic ties, and which may also make joint partnerships and ventures less attractive.