Economy and Tourism
- Written by Ministry of Economy
New NIS 5 Million Program to Aid Development of Social Enterprises Employing Target Populations
Program will be operated by the Small and Medium Business Agency in the Ministry of Economy
Will aid the development of social enterprises that employ people with disabilities, youth-at-risk and others, by contributing to their salaries up to NIS 200,000 per company
Minimum pre-condition for aid: At least 20% of employees belong to prioritized population sectors, or 30% for smaller businesses
Jerusalem, July 9, 2015 – The Small and Medium Business Agency at the Ministry of Economy is launching a pilot program to help social enterprises cope with the high costs involved in employing prioritized populations. The program aid will be given as participation in the costs borne by the company to employ workers from prioritized populations, for employment advancement. For 2015, the program budget is NIS 5 million.
The employees at the social enterprise will be directly employed by the company. The aid will be given to social enterprises as participation in the salaries of the qualifying employees, up to a fixed ceiling of NIS 200,000 per business per year, in accordance with the following participation rates: during the first year, 50% of salaries for qualifying employees; during the second year of participation in the program, a sum equal to 40% of the actual salaries of qualifying employees.
Minister of Economy Aryeh Deri: “Disadvantaged populations must be integrated into the economy and society. Today, the most disadvantaged people must struggle twice – first with their problematic point of departure, and then with being stigmatized by society. I have made the commitment to concern myself with them, and that means not only cutting prices or increasing benefits, but also properly integrating them into the labor market. I have good news for social enterprises that are not only looking at company profits but also at their contribution to the community and Israeli society as a whole. As part of the program, social enterprises that employ at least 5 employees from the prioritized population may submit a request and possibly receive government participation in funding the salaries of employees from prioritized populations, up to a ceiling of NIS 200,000 per business per year.”
Director of the Small and Medium Business Agency Ran Kiviti: A ‘social enterprise’ is any business with activity focusing on commercial activity, whether in an NPO or a company for public benefit working to advance and realize social goals, and commercial companies with activity directed at realizing social goals with activity to realize social goals or employ prioritized populations, such as people with disabilities and youth-at-risk.
The program is based on decisions made by the economic round table, headed by the prime minister, and withthe participation of the business and third sectors.
So which businesses fit the program?
1. A company that has been employing 5 workers from prioritized populations for at least a year, with a minimal number of weekly hours.
2. A company with up to 51 employees – with at least 30% of its workers meeting the definition of “prioritized populations”.
3. A company employing from 51-100 employees – with at least 25% of its workers from prioritized populations.
4. A company employing over 100 employees – with at least 20% of its workers from prioritized populations (if its annual business cycle is up to NIS 100 million).
- Written by Ministry of Economy
ECONOMY MINISTER AND CHINESE AMBASSADOR MEET TO DISCUSS ISRAELI-CHINESE FREE TRADE ZONE
[JERUSALEM – 7th July 2015] Economy Minister and Negev and Galilee Development Minister Aryeh Machluf Deri met yesterday (Monday, 6 July 2015), for the first time, in his Jerusalem office, with Chinese Ambassador to Israel Zhan Yongxin. The two discussed - inter alia - the establishment of a free trade zone between Israel and China.
Minister Deri stressed Israel's desire to establish such a zone. The Chinese Ambassador reiterated China's commitment to begin negotiations for an agreement, as first announced by Chinese Prime Minister Li Keqiang in March in his report to the National People's Congress.
Both sides stressed their mutual desire to strengthen ties and expand Chinese investments in Israel, which have thus far reached $6 billion. They also agreed that a free trade zone agreement would raise bilateral ties to a new level and bring real economic benefit to both sides.
Minister Deri said, "The Israeli Ministry of Economy concentrates efforts to promote and expand the trade ties between the two countries and to this end operates various tools to support Israeli companies doing business in China, such as dedicated funds for projects in the People's Republic of China, supporting incoming and outgoing delegations and of course, our trade attachés posted across China."
The Economy Ministry Foreign Trade Administration, which is expected to lead the negotiations for a free trade zone agreement with China, is making preparations for the talks and is consulting trade and industry officials regarding Israel's specific interests in the negotiations.
The Foreign Trade Administration operates five trade attachés across China - two in Beijing - including one who focuses on policy and regulation, one in Guangzhou, one in Shanghai and one in Hong Kong. This number is identical to the number of attachés in the United States and the goal is to continue expanding the distribution of trade missions in China.
Photo : Chinese Ambassador to Israel Zhan Yongxin . Photo provided by Ministry of Economy
- Written by Ministry of Economy
Israel and Germany signed an agreement this week for the purchase of four corvettes for the Israeli Navy * German Delegation to Israel – including naval officers, senior Defense Ministry officials and representatives of ship manufacturer TKMS – ThyssenKrupp – arrived in Israel for signing ceremony * As part of deal, TKMS made commitment with Division for Foreign Investment and Industrial Cooperation at The Israeli Ministry of Economy for reciprocal purchasing, including direct investment in Israeli industry of NIS 700 million
JERUSALEM – 12th May 2015 – ThyssenKrupp is a multi-disciplinary concern in the metal production sector. The group produces metal (40%), parts for the auto industry, establishes chemical plants, manages the TKMS shipyard and is involved in other activities. The company employs 160,000 people around the world, 60% of them outside Germany. The company's revenue for 2014 stood at €40 billion. The company invests about €1 billion annually in R&D, half in projects outside Germany.
In 2006, the Israeli government signed a deal with the German manufacturer to purchase dolphin-type submarines. Following the transaction, TKMS committed to a reciprocal purchasing agreement worth 40% of the Israeli financing in the deal, totaling NIS 1.8 billion (reciprocal purchasing worth NIS 740 million). An examination by the Division for Foreign Investment and Industrial Cooperation at The Israeli Ministry Of Economy showed that until now, the company has not fully realized this commitment.
In light of this, the division demanded - even at early stages of the negotiations - to discuss widening the company’s reciprocal purchasing agreements and its future commitments in the framework of the new deal.
Director of the Division for Foreign Investment and Industrial Cooperation at The Israeli Ministry Of Economy, Ms. Ziva Eger, was determined to fully realize the existing commitment, to create a larger commitment from the company for reciprocal purchasing in Israel and to redirect some of the commitment expressly toward direct investment in Israeli industry. This, to maximize the gain for the Israeli economy and the local labor market.
As part of the outline agreement with the company, the following was achieved:
* TKMS committed to a reciprocal purchasing agreement worth 50% of the new deal - c. NIS 700 million; this in comparison to the previous commitment in which reciprocal purchasing agreement stood at 40%.
* The Division for Foreign Investment and Industrial Cooperationand TKMS will jointly examine the viability of jointly investing in research and development, establishing a manufacturing facility and converting some of the reciprocal purchasing commitment to capital investment; this in comparison to the previous deal in which TKMS committed to a reciprocal purchasing agreement only.
Director of the Division for Foreign Investment and Industrial Cooperation at The Israeli Ministry Of Economy, Ms. Ziva Eger said: "The Israeli Ministry of Economy, with the backing and cooperation of the Israeli Ministry of Defense and the Israeli Navy, managed to bring to the negotiating table a draft that turns defense acquisitions into cooperative ventures and economic development. Expanding the economic activity of TKMS in Israel is a breakthrough in trade, economic and research cooperation between the countries. We operate according to the policy set by the ministry to encourage small and medium-sized factories and to strengthen Israel’s peripheral communities. The cooperation with TKMS is an example of the importance of reciprocal purchasing agreements for the Israeli economy."
Director General of the Israeli Ministry of Economy, Mr. Amit Lang said: "The Israeli expenditure on national security injects money into Israeli industry. We have begun a move that turns a standing commitment into direct investment in Israeli industry, based on a detailed plan with a set timetable. This is excellent news for Israeli industry and for the Israeli job market. It also shines a positive light on Israel's economic and security cooperation with Germany, countries marking 50 years of diplomatic relations this year."
- Written by Economy Ministry
MINISTRY OF ECONOMY SIGNS COOPERATION AGREEMENT WITH LATIN AMERICA'S INTER-AMERICAN DEVELOPMENT BANK
Chief Scientist at the Israeli Ministry of Economy, Avi Hasson, signed a cooperation agreement with the Inter-American Development Bank (IDB) - the largest investment authority in Latin America and the Caribbean Islands * The bank funds projects in Latin American and Caribbean countries at an annual rate of $12 billion * The agreement will open new business opportunities for Israeli companies in Latin America
Israeli Minister of Economy Aryeh Deri: "Diversifying destination markets is a national endeavor for the State of Israel. In the world of new developing markets it is crucial for Israel to succeed. The agreement is an important step for promoting economic relations, for opening new business opportunities and for increasing Israeli exports. The State of Israel must diversify its export destinations and economic activity all around the world."
Avi Hasson, Chief Scientist at the Israeli Ministry of Economy: "The Chief Scientist's activity in the area focuses on creating opportunities to effectively commercialize innovative solutions adapted to Latin American markets. Implementing the agreement will give Israeli companies access to partners in R&D and trade in the region."
JERUSALEM – 29th June 2015. Chief Scientist at the Israeli Ministry of Economy Avi Hasson signed a cooperation agreement with the Inter-American Development Bank (IDB) recently. The agreement will open new business opportunities for Israeli companies in Latin America.
The Inter-American Development Bank is the largest investment authority in Latin America and the Caribbean Islands. There are 48 member states in the bank, including Israel. The bank funds projects in Latin America and the Caribbean Islands to the tune of $12 billion annually.
The agreement was signed in line with the government's policy to strengthen trade relations with Latin American countries. The government authorized the Chief Scientist to sign the agreement with IDB, realizing that this institution will open opportunities for Israeli companies on the continent.
Several weeks ago the Office of the Chief Scientist at the Israeli Ministry of Economy, MATIMOP (the international branch of the Office of the Chief Scientist on R&D) and the Foreign Trade Administration hosted a delegation of senior officials from the bank, who made a first visit to Israel to discuss with the chief scientist opportunities for involving Israeli companies in projects funded by the bank.
Among the concepts discussed: Establishing a joint $5 million fund for subsidizing innovative projects involving Israeli companies in Latin America, assistance from the bank in making Israeli technologies accessible to organizations in Latin American countries, helping Israeli companies get involved in development programs that are funded by the bank and funding industrial R&D cooperation with a joint budget from the bank and the Latin American countries with which the Chief Scientist has signed bilateral agreements.
The new agreement constitutes a significant step toward upgrading the Chief Scientist at MATIMOP's activity in the Americas, a process which started two years ago. Cooperation programs with the Americas are run with the assistance and coordination of the Foreign Trade Administration at the Israeli Ministry of Economy, the trade attachés in Latin American countries, the Foreign Ministry and embassies, and of course, local partners in the various countries in which activities take place.
The Chief Scientist at the Israeli Ministry of Economy has recently announced that a program for subsidizing the adaptation of products to all Latin American countries will be expanded; the program gives Israeli companies the possibility to receive grants from the Chief Scientist for the purpose of adapting existing products to the demands of the Latin American market (including establishing pilot programs, adaptation to local regulations, reducing manufacturing costs etc.)
Israeli Ministry of Economy data shows that Israeli exports to Latin America in 2014 stood at $2.53 billion (excluding diamonds). The field of machines and mechanical devices was leading the export branch with 39.7% of all exports, followed by chemicals (20.1%), then plastics and rubber (6.3%). Brazil is Israel's main export destination in Latin America: In 2014 exports reached $915 million, totaling 36.1% of all Israeli exports to this region. Mexico, Costa Rica, Colombia and Chile are the next most significant export destinations after Brazil.
Israel's network of trade agreements with Latin America
Israel's trade agreement with countries which are members of the South American joint market (Mercosur) went into effect on June 1 2010 (Brazil, Uruguay, Paraguay), and on September 9 2011 with Argentina. Israel is the only country outside Latin America that enjoys a free trade agreement with Mercosur states. Since the agreement became effective, two conferences took place where senior officials from both sides participated and discussed increasing trade. Another conference is expected this year.
On July 1 2000 a free trade agreement between Israel and Mexico entered into effect. The agreement promises fair competition for Israeli exporters, mainly against competing exporters from the US, who enjoy free access to the Mexican market due to the NAFTA (North American Free Trade Agreement, involving the US, Canada and Mexico).
Inter alia, the agreement between Israel and Mexico regulates competition and the rules for resolving disputes. A joint commission was established to oversee the implementation and promotion of the agreement and joint committees of experts were established on source regulations, customs procedures and other issues pertaining to bilateral trade. A joint conference is expected to take place this year.
Negotiations between Israel and Colombia on free bilateral trade were concluded in September 2013 and confirmed shortly thereafter by the Israeli government. An agreement is now pending approval by the Colombian government and will then enter into effect.
A negotiation on free trade between the two countries is currently underway. In July, the third round of talks is expected to take place in Israel. Another fourth round will take place before the agreement is finalized.
- Written by Headline
THIRD INTERNATIONAL AGRIVEST CONFERENCE TO SHOWCASE POTENTIAL FOR INVESTMENT IN AGRICULTURAL TECHNOLOGY
AgriVest, a partnership between Israel’s Ministry of Economy, Trendlines Agtech and GreenSoil Investments to be held at Weizmann Institute of Science on 27th April 2015
[JERUSALEM – 30th March 2015] The third international AgriVest conference, an initiative of Invest in Israel, the investment promotion center at the Israeli Ministry of Economy, the Trendlines Group and Trendlines Agtech and GreenSoil Investments, will take place at the Weizmann Institute of Science on April 27 2015.
During the conference, which serves as a unique platform for meetings between potential investors and key executives in the global agricultural industry, Israeli startups will present their finest in agritech innovation to hundreds of professionals, government officials, businesspeople, scientists and leading investors from Israel and abroad.
The growing need and demand for food security, together with the challenges of creating a sustainable, eco-friendly agriculture, constitutes fertile ground for development and innovation in agritech. The growing awareness around the world is that the only way to overcome the gap between supply and demand is by using new and advanced technologies which can offer solutions to improving the chain of agricultural production and food supply.
During the conference, two panels will feature senior agritech officials from Israel and the world: The industry panel moderated by Eyal Lipetz-Eliassi, DuPont, includes Sam Fiorello, Danforth Plant Science Center, Ofer Haviv, Evogene, Pam Marrone, Marrone Bio Innovations, Barry J. Schindler, Greenberg Traurig, and Alexander Wigelmann, KWS SAAT. Adam Anders, Anterra Capital, Dror Berman, Innovation Endeavors, Dan Hodgson, Linn Grove Growth Fund, Arama Kukutai, Finistere Ventures fund, Michael Lee, Syngenta Ventures, and Jinesh Shah, Omnivore Partners will participate in the investment panel moderated by Gideon Soesman, GreenSoil Investments.
The focus of the event will be a presentation by 12 selected Israeli startups*, who will show their finest in the Israeli agricultural industry to investors from Israel and the world. The companies were selected by a professional, independent commission headed by Chief Scientist at the Ministry of Agriculture Avi Perl, from more than 40 companies that competed for the privilege of presenting at the conference. They will be graded by the participants and at the end of the day the leading company will be awarded a prize presented by Oded Distel, Director of Invest in Israel at the Israeli Ministry of Economy and Dr. Nitza Kardish, CEO of Trendlines AgTech.
Oded Distal, Director of Invest in Israel at the Israeli Ministry of Economy added: “The Ministry of Economy is delighted to once again be showcasing some of the most exciting and innovative Israeli agtech companies at AgriVest. We have seen the value that this event has had for Israeli companies in the past and hope that this year will result in positive relationships being developed between companies, investors and government officials both in Israel and around the world”.
Dr. Nitza Kardish, CEO of Trendlines Agtech, said: "In recent years the global challenges of supplying food for a growing population are getting worse, and demand is on the rise. Agricultural technology presents the infrastructure for resolving the very serious issue of world hunger. Israel can and needs to present the world with solutions, including innovative developments which fulfill the future needs of global agricultural markets. We have the tools, the knowledge and the ability to lead development of technological research in agriculture, and to realize the possibilities of this field as a successful export industry. The AgriVest conference is a window of opportunity and a platform for meetings between investors and entrepreneurs. There is huge interest around the world in Israeli developments and they carry significant economic potential, as well as benefits for Israel's global image."
Gideon Soesman, Co-Founder and Managing Partner, GreenSoil Investments remarked: “AgriVest showcases technologies that will enable us to produce unique foodstuffs, additives, seeds and agricultural products to combat the stress on our dwindling natural resources. Investing in new crops, treatment methods, waste reduction and yield enhancement will provide solutions to the world’s food crisis and can deliver sizable returns to investors.”
Raphael Meisner, CEO of Rootility, winner of AgriVest 2013: "AgriVest was a perfect platform for us - we presented our company, met with investors and created strategic ties."
AgriVest takes place the day before Agritech - the International Agriculture Exhibition and Conference - scheduled for April 28 to 30, 2015, in Tel Aviv. Agritech is one of the world’s leading conferences in the field of agricultural technologies. Agritech features hundreds of Israeli agritech developments, from greenhouses and irrigation to water management and dairy farming. In 2012, 8,100 foreign visitors attended Agritech.
* The companies featured in this year's conference are: BioFishency, CropX, DouxMatok, Ecofer Fertigation, EQUInom, FuturaGraft, Groundwork BioAg, Hinoman, Phenome Networks, Saturas, Valentis Nanotech and VIBE Technologies.