Israel Africa | Business Guide | 2020

GDPgrowth forecast vs. Credit rating inSub-Saharan countries the Y-axis represents the credit rating, the X- axis represents the annual average growth forecast for the years 2020 - 2021 , and the circle is pronounced the size of the 2019 GDP Analysis: Israel Export Institute Source: GDP - IMF &WB, credit rating - S&P The African continent is three times the size of Europe. By 2050 , the population in Africa will have doubled, reaching one quarter of global population, and 50 % of the world’s young population. The demographic growth will be seen primarily in the continent’s urban population and Africa will become a main source of the global workforce. By 2050 , the growth of the work-age population in Africa will surpass the combined growth rate of the work-age population in the rest of the world. Therefore, Africa is the continent with the highest expected “demographic dividend” in theworld (continued growth, based upon the growth of the work force). The demand for rawmaterials has drawn the interest of world powers, driving foreign direct investments in the continent. Alongside, lots of government attention in some Sub-Saharan countries is focused on improving ease of doing business. As a result, many African countries are enjoying a growth spurt since the beginning of the current century. Challenges: Notwithstanding the incredible economic potential of the continent, and despite the growth that certain African countries are experiencing, it is important to remember the high risks and challenges involved in doing business in Africa. Such risks may include access to credit andfinancial resources, trade, and logistics difficulties, over regulation, excessive bureaucracy, corruption and lack of transparency, unstable governments and personal security risks that still exists in some areas. Agro-Technologies lead the trade between Israel and Africa: There is undoubtedly potential for substantial trade growth between Israel and Africa. Imports to Israel increased by 20 % between 2018 and 2019 to a total of $ 260 million, while exports in 2019 were $ 590 Million, a drop of 16 % from the previous year. Total trade The credit paradox: According toour findings, it seems that the 3 highest level credit risk ratedeconomies, South Africa (BB+) Namibia (BBB-) and Botswana (A-), are actually among the top 5 countries that are expected to record the highest GDP decrease between 2020 – 2021 , while other countries with higher risk ratings will likely post high growth rates in 2021 . It is indeed another step in the rise of new economic and business opportunities in the African continent. 13