Here’s why Israeli investors are increasingly looking to Africa for opportunities

Israel and Africa have long histories of innovation and entrepreneurship, with both regions facing significant challenges that have fostered a culture of problem-solving and ingenuity. In a recent move signaling a deepening of investment ties, Future Africa, an African investment collective, has opened an office in Israel. This development comes on the heels of Israeli venture capital firms increasing their investment commitments in African counterparts, indicating a growing interest in African opportunities within the Israeli investor community. In an exclusive interview with CNBC Africa, Caleb Zipperstein, Future Africa Venture Partner, shared insights on the synergies between Israel and Africa's innovation ecosystems. He highlighted how both regions have harnessed innovation to address existential threats and pervasive challenges, leading to the emergence of groundbreaking solutions that have global relevance. Zipperstein emphasized that big challenges require big innovations, a philosophy that underpins both Israel and Africa's entrepreneurial journeys. Key Points: 1. **Collaborative Opportunities:** Zipperstein noted that Israeli companies are increasingly engaging in proof of concepts with African startups, showcasing a burgeoning trend of cross-border collaboration. He pointed out the readiness of Israeli serial entrepreneurs to work with African founders and startups, as well as the strong corporate venture capital and multinational R&D ecosystems in Israel that are primed for African partnerships. 2. **Mutually Beneficial Relationship:** The interview underscored the mutual benefits of collaboration between Israel and Africa. Zipperstein highlighted the economic incentives for Israel to engage with the African innovation ecosystem, citing the strength of African technology, teams, and execution. He emphasized the opportunities for Israeli investors and companies to tap into the growing African market and contribute to its development. 3. **Market Potential:** Zipperstein identified the market opportunity for investors, particularly angel investors, in Africa's early-stage deals. He emphasized Future Africa's position to support and grow this market opportunity, offering access to top-tier early-stage investments on the continent. Zipperstein stressed the importance of not just investing but actively participating in building solutions to challenges, with the aim of creating global companies that benefit not only Africa but the world at large. Quote: "It's not just about investing. It's about building. Early stage investing in Africa with Future Africa is really about building solutions to the seemingly impossible challenges we're all facing today, with the purpose of building global companies that will not just help Africa but eventually help the whole world," said Zipperstein. As Israel deepens its engagement with Africa, the prospects for innovative collaborations across sectors such as agriculture, water technology, and education technology are on the rise. The recent inclusion of Israel as an observer state in the African Union and normalization agreements with countries like South Sudan signal a strategic reorientation towards fostering partnerships and driving economic growth through cross-continental cooperation. In conclusion, the dynamic relationship between Israel and Africa holds immense promise for leveraging shared expertise, resources, and entrepreneurial spirit to address complex challenges and drive sustainable development across both regions. With a focus on innovation, investment, and collaboration, the future looks bright for mutually beneficial partnerships between Israeli investors and African innovators.