Israel is not perfect; nor is any other country.
Before making a decision on the divestment issue, it is important to acquire accurate knowledge of the historical and economic realities of the region.
With this knowledge, it becomes apparent that divestment is not a useful solution to the fighting in the Middle East.
Israel cannot be compared to South Africa.
The purpose of the apartheid movement was to gain equal rights in their own country. The Palestinians do not want to be a part of Israel.
They do not want Israel to exist. While there are radicals on both sides, Israel has time and again offered land for peace. The Palestinian leaders have not wanted to compromise, for example at the Oslo Accords.
Palestine was the entire region of Israel and Jordan (then Transjordan) before 1922. England attempted -- and failed -- to provide a homeland for all of the people living in Palestine.
The borders of Israel have changed since Israel was declared a nation in 1948, however, the land that Israel "occupies" was gained in a series of wars in which Israel was not the aggressor.
The people who are today referred to as Palestinians were in a troubled economic state even before Israel was internationally recognized as a country.