Israeli government in Africa tour to diversify business interests

Israel’s government is leading 50 executives this week on a tour of Africa in a bid to diversify business interests.

Foreign Minister Avigdor Liberman is seeking deals in the world’s fastest-growing economies for companies, including defence contractor Elbit Systems Ltd, irrigation equipment maker Netafim Ltd, and billionaire Idan Ofer’s Israeli Chemicals Ltd.

Ofer was in Ethiopia last month to inspect his latest investment in a $642 million potash mining project. The company is looking to turn around the worst stock return this year on the Tel Aviv benchmark stock index.

Israel’s sub-Saharan exports amounted to $1.4 billion last year, almost four times the total of $374 million in 2003, said Shauli Katznelson, who directs the economic division at the Israel Institute for Export and International Cooperation in Tel Aviv.

While the World Bank has cut its growth estimate for sub-Saharan Africa this year to 4.7 percent from 5.3 percent, and for 2015 to 5.1 percent from 5.4 percent, Katznelson sees good prospects for Israeli businesses. Of the region’s 52 countries, Nigeria, Angola, Kenya, Tanzania, Ghana and Ethiopia are likely to be most fruitful, he said.

“When you look at the map, you see growth in the sub-Saharan countries that is even greater than in Asia and that offers a great deal of opportunity for Israeli companies,” Katznelson said.