Export assistance will rise by 10%: 120 million $

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by Ifi Reporter Category:Government Jan 25, 2018

The Ministry of Economy will allocate NIS 100 million this year to the Export Assistance Program, an increase of 10 percent compared with the previous year. The export target for last year has been a consolation - $ 100 billion and a target for 2020 - $ 120 billion

The annual assistance tool of the Director of Foreign Trade was presented to the exporters' aid funds.
"The Israeli economy is at its peak in recent years, the employment situation is the best in recent years, the Israeli debt is lower than in previous years, the government reduced taxes, there are demand for investments in Israel, and 320 foreign companies are already working with us in Israel, Technologies and services of Israeli companies in many policies, noting Israel's foreign trade, which for the first time crossed the $ 100 billion mark for the first time, "creating a strong economy and affecting the dollar, which is more affected by market forces than by the Bank of Israel. Government representatives, manufacturers and entrepreneurs all over the world express great confidence in us, and we must convey to the world that doing business with Israel and Israeli companies is a worthwhile investment, and to strive to improve the conditions in which Israeli industry competes worldwide "
The conference stated that 2017 was a record year both in terms of the number of requests for assistance and in terms of the volume of subsidies of the Foreign Trade Administration in the Ministry of Economy and Industry.
In the past year, 389 applications were submitted to the Foreign Trade Administration, of which 247 were approved for a total of NIS 88 million, an increase of 50% in the scope of support for 2016.
By comparison, in 2016, 240 applications were submitted to the aid funds, of which 129 were accepted, and 111 were rejected, a 62% increase in the number of requests compared to last year.
The applications submitted to the four funds were characterized by a wide range of companies, areas of activity and target markets: from the software, communications, high-tech and cyber sectors to companies that came from printing, toys and medical aesthetics.
 Looking at the segmentation of the target markets of companies that applied for support, the United States leads with more than half of the requests, followed by China, Germany, Britain, India and Japan
 As for the location of companies in Israel, in view of the importance that the Government of Israel sees in the development of the northern region in core areas and the development of growth engines, as part of the "Northern Government Decision" (2262), communities and areas have been declared as national priority areas, Complementary. " For this purpose, the ILA acted in favor of providing aid to encourage marketing abroad to companies from the Northern District. In 2017, 52 applications from companies in the Northern District were approved, totaling NIS 20 million.
About 7% (an increase of 3% compared to last year) of all companies approved for assistance during the past year are members of the minority sector, while the "smart money" program has a unique track (in accordance with Government Resolution 922). This allows companies in which Arab, Druze or Circassian shareholders hold more than 50% of ownership to compete for assistance on more favorable threshold conditions and increased support rates of 75% of total recognized expenditures. In 2017, a total of 25 requests were submitted by minority sector companies, of which 16 were approved for a total of NIS 8 million.
In 2017, along with the old plans run by the ILA, including a smart money plan, an infrastructure plan and a plan for the international project and tender fund, a new program was added to the aid system - the Shalav program - designed for low-export aid seekers who wish to expand their activity in the markets or not Have been exporting in the past and are interested in exporting and marketing products and / or services, and 125 applications have been submitted, of which 66 companies have been approved for a total of NIS 11 million.
In 2018, the budget of the Foreign Trade Administration's support programs for exporters will be increased by more than 10% to NIS 100 million, in view of the high demand for participation in the programs.
The following are the plans for 2018:
Three aid funds will be established. The first fund will be provided with two-year assistance for the marketing efforts of Israeli companies with early experience in exports in penetrating a new market or when launching a new marketing process in the market in which they are active in order to achieve a significant increase in sales. In addition to the financial assistance, the companies also receive close guidance from the commercial attache and the consultant specializing in the field of activity and / or the market in which the company wishes to succeed.
An international project and tender fund will also be established. This fund supports the cost of proof of feasibility for a potential project abroad or the costs involved in competing for international tenders in order to participate in the risk that Israeli companies face when they compete in tenders or carry out projects abroad.
The third fund provides assistance in financing the establishment and operation of marketing. The fourth fund is intended for those seeking assistance to companies with limited exports who wish to expand their activities

picture: gpo, Gidon Sharon

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