Commercial and Economic Relations
The trade of goods between Israel and SA is approx. 300M$ per year that divides to 200-250M$ export from Israel to SA and 50-100M$ import from SA to Israel.
The biggest parts by percentages of the goods export to SA are 22% for Electrical & Machinery and 19% for Chemicals
The biggest parts by percentages of the goods import to Israel are 46% for Food & Agricultural and 13% for Electrical & Machinery
The trade of services between Israel and SA is aprrox. 90M$ per year. Around 66% is export from Israel to SA and 33% is import from SA to Israel
80% of the export of services from Israel to SA is computer softwares, 10% Telecom software and the rest are legal, engineering and maintenance. The import of services between SA to Israel is much more diverse with 13% Sales and Marketing, 17% management services, 21% Advertising, market research, and public opinion polling
Hereby below is a list of sectors that the Israeli Trade Mission is prmoting collaboration between Israeli and SA companies
Israel is an internationally recognized leader in cutting-edge agricultural technology with over 500 Agritech startups and companies, ranging from Smart Farming, Crop Protection, Machinery & Robotics, Post- Harvest, Market Linkages, Biotech, Aquaculture, Waste-Tech, Alternative Farming, Precision Irrigation & Water solutions. Technologies like sensors, computer vision, blockchain, drones, and artificial intelligence are solving major agriculture issues. Israel is a primary global AgriTech hub with its agriculture innovations being so impressive that it’s expected to be the country to ensure food security for the world. South Africa is ranked as the 30th driest country in world, making water a key constraint to agricultural development. A growing number of farmers are starting to adopt digital technology and data-driven innovations, posing numerous opportunities for investors, agricultural and green technology manufacturers, service providers, distributors, and others in the value chain. The Israeli Agritech eco-system is well poised to mitigate the water problems restricting agricultural development as well as contribute to the adoption of Agritech.
Life Sciences – Medtech
The Israeli Medical Industry is a combination between Life Sciences and High-end Technologies starting from the design, development, advanced manufacturing integrating innovative materials, systems and technology increasing the efficiency of the medical staff, allowing them to achieve maximum accuracy in testing and treatment tailored to each patient’s unique profile placing the individual in the center. Israel’s health system is destined to become one of the world’s leading providers of digital health with +_ 1,500 active companies.
The Largest Sectors are Medical Devices and Digital Health with world-class innovations in Digital Imaging, Medical Lasers, Telemedicine, Early Diagnostics, Smart Surgical Equipment and more. Over 600 medical device exporters engaged in a variety of medical application such as Cardiovascular and Peripheral Vascular, Neurology and Degenerative Diseases, Preparedness and Emergency Medicine, Intensive Care, Women Health, Orthopedics and Sport Medicine, Gastrointestinal, Infection Control, Ophthalmology, Pain & Wound Management, Oral & Dental Care, Dermatology & Aesthetics…
The digital era opens tremendous opportunities to deliver healthcare services to patients at the comfort of their homes or wherever they are, through any web or mobile device, without requiring a presence of healthcare provider in the loop. For millions of people that live in distance from or in scarcity of healthcare resources and services, the growing spread of smartphones creates new possibilities to improve healthcare services access and quality of life. Telemedicine, mHealth, Wearables, Remote Monitoring, Electronic Medical Records, Big Data Analytics, Internet of Medical Things, Medical Apps and others all can be incorporate into Digital Health or Health Information Technologies. The Covid-19 pandemic has accelerated the adoption of telemedicine to alleviate the pressure on the Healthcare system.
One of the hottest hubs for commerce and technologies to emerge from the established Israeli Startup and R&D landscape is the RetailTech ecosystem with over 250 startups operating across the board from logistics to in-store. These companies are leveraging Israeli´s expertise in deep-tech like the use of computer vision for self-checkout or the application of artificial intelligence for visual search. Israeli Retailtech’s digital solutions range from Last Mile, Supply Chain and e-commerce to data & analytics used to boost and accelerate digitization and disruption in the retails space. These challenging times provide the perfect opportunity for companies to adapt and adopt these technologies to sustain their business and thrive post pandemic.
Multi-national retailers such as Amazon, Alibaba, eBay and Sears have invested in and established R&D centers with the companies in Israel. Wallmart twiggle and flipkart, McDonald’s dynamicyield, cimagine to Snap, visualead to Alibaba amongst a plethora of others.
There are six major cellular network providers in Israel, which offer telecommunication services. Israel’s telecommunication network is one of the most sophisticated in the world. It is one of the few countries worldwide to have 100 percent digitalization for its conventional telecommunication network. There is a huge market for Israel to provide innovation for the telecommunication industry in South Africa. Africa is the fastest growing regions with cybercrime activities. In South Africa, around 570-suspected cyberattacks happen each second. Israel have more than 50 cyber security companies, which can form relationships with cyber companies in South Africa to help reduce the cyber-attacks.
Israel is considered to play a vital role in the digital world, especially in I.T, software, and internet aspects. Israel has more than 100 software companies active in the cloud computing, delivery of business, and consumer services over the internet. Israeli companies are taking a leading role in developing Cyber Solutions, IT Security, business intelligence, cloud computing, virtualization and internet applications. South Africa businesses are looking to grow more into artificial intelligence and internet of things. The Israel I.T companies are able to cater for this demand and lead innovation for the South Africa market.
Property and Construction Tech
There are more than 100 Israel start-up companies. Proptech in Israel is on a growth line as innovations and start-up is increasing. For example, the proptech sector in Israel provides a lifelike 3D simulation of a customer’s home or property, and through its VR platform, it allows the customers to walk around, using VR goggles, so that the viewer does not have to leave the office/home. Inside the VR, the customer is able to design and decorate the property choosing bricks, tiles, furniture and more. Construction technology in Israel is turning into an international leader and attraction point. South Africa is looking to increase efficiency and increase technology in the property and construction sector. Israel is able to cater for this need, by providing innovation and technology to the property and construction field in South Africa.
In the FinTech age, banks are tasked with innovating. Tech disruption is forcing financial institutions to take a good look at their business models. Israel has positioned itself as a front-runner in leading technology and the fintech industry has grown to include 500 fintech start-ups. Our work entails positioning Israel as a highly innovative financial ecosystem. The country’s fintech know-how is impacted by way of innovations in fields such as cybersecurity, AI and customer experience.
Over the past few years, the Israeli Fintech industry has established itself as a frontrunner in financial innovation, boasting several unique strengths and advantages that have enabled its success within the global market, and offer distinctive benefits. These include recognized local expertise in such cross-over technologies as cybersecurity, big data analytics, and AI, as well as an active and diverse entrepreneurial Fintech community with a global outlook. Israeli Fintech startups have raised more than $1.8B in total across 211 deals since 2014.* In 2019, Israel was ranked fifth in the world in terms of global fintech investments.
Israel is one of the most technology driven economies in the world and the Israeli start-ups are leading the way to Insurtech. Major life insurance companies and some financial service firms in SA are looking at the growth opportunities and are looking to establish strategic relationships with Insurtech start-ups. Israel has a disproportionate innovation footprint, both in terms of attracting investment and independent global rankings; in short, a small place where big things happen.
There is a growing interest in Israel’s InsurTech and FinTech sectors, which are now 75% funded by foreign venture capital-backed investments, compared to 60% in 2016. Of the foreign companies that invest, 38% are multinationals. Israeli insurtech has continued to develop in 2017, comprising 7.5% of global private industry-related investments.
Transforming education with technology-based learning solutions to lead the disruption in the Israeli Edutech ecosystem. The primary aim is to connect Israeli start-ups, entrepreneurs, venture capitalists and business partners in this sector. The Trade Mission assists anyone interested in the Israeli Educational Technologies sector thereby benefiting and servicing the SA market at large. A new ecosystem is growing up around more than 100 Israeli startups developing sophisticated ed-tech tools – using technologies such as augmented reality, gaming and virtual reality – to enhance and transform the learning environment for all ages, learning styles and settings.
SA has an enormous appetite for quality education and the introduction of online learning has changed the scenario of the SA educational system, with its reach and economical access and Israeli companies excel in providing innovative technologies and enhance R&D services for business opportunities. Technology and education together are changing the face of global learning. With an overwhelming increase in mobile-connected devices, global data traffic and mobile video traffic, the EduTech sector is set to enter a new era. EduTech companies are driving further development of data-driven education technologies, leading to fundamental changes in how school and college students as well as professionals seeking new skills are learning.
Over 60 percent desert, Israel is located in a semi-arid climate region. In the early 2000s, the government made the strategic decisions to develop desalination on a large scale. Plants were constructed along the Mediterranean Coast that now supplies 85 percent of domestic urban water consumption and 40 percent of the country’s total water consumption. Israel is also a world leader in recycling water It treats 86% of domestic wastewater for safe reuse in agriculture. This is 55% of the total water used for agriculture, far surpassing any other country in the world. Similar to Israel, South Africans have been facing various water issues. South Africa as a dry country with water needs that impact every aspect of its development in 2018, Cape Town residents were shocked when ‘Day Zero’ was approaching during the water crisis that hit. Israel often hosts water delegations to and from South Africa, to help with knowledge, solutions and new techniques for water management.
Israel is driving sustainable change in the global energy and environmental ecosystems. According to a recent report in the Cleantech Group and the WWF, Israel is the second most innovative country worldwide for clean technology and early in 2018, Israel was also named as the world’s top innovator in the field of clean technologies by the Global Cleantech 100 Index. Israel’s leadership in cleantech is more than just testimony to the country’s prowess in innovation and making the most of limited resources – it’s also a shining example of how Israeli tech can benefit the entire world. On December the 4th 2017 the Government of the United States and the Government of Israel entered into a Memorandum of Understanding (MOU) to advance the common goals of reducing energy poverty and increasing access to energy in sub-Saharan Africa through innovative partnerships between private enterprise, African governments, and foreign assistance.
Home Land Security
With a more than 70-year track record of developing innovative security solutions, as well as a vibrant tech ecosystem, it’s hardly surprising that Israel boasts a Homeland Security (HLS) industry of exceptional competence, quality and innovative output. Israel is home to over 400 companies in the sector that export their world class technologies to help secure populations around the globe. In a world where homeland security threats are rapidly evolving, Israel seems uniquely poised to fortify the international community and protect civilian populations. Not only does Israel’s edge stem from its vibrant ecosystem of world-class technologists, it also stems from the country’s embattled history and the hard-won resilience these struggles produced. In a way, Israel transforms lessons from its own tumultuous past into technologies to keep people safe worldwide.