AFDB Fund Aims to Boost Libyan Exports

The African Development Bank (AfDB) on 11 February 2010 announced a funding to Libya to bolster the country's exports and promote regional economic integration.

"Libya, which is the richest African country in terms of natural resources, has huge potential to make the difference in the region, the continent and even beyond," AfDB operations chief Aloysius Ordu told PANA.

The bank also hopes this US$744,000 funding will encourage Libya to engage in more trade, which will benefit its neighbors, Ordu said.

Funds will be used to restructure the Libyan Centre for the Development of Exports (LCDE) and create a strategic plan for its existing export and business development services. Centre employees will also receive administrative and leadership skills training so that they can better assist small- and medium-sized enterprises.

LCDE administrators will also use the funds to make overseas visits to learn about export-oriented industries in other economies.

"What Libya received today was technical assistance from the African Development Bank, and this is very important for a country that seeks to diversify its economy and get away from its dependency on oil," LCDE chief Bashir Derwish, told Magharebia on 11 February 2010.

"Libya has things it can export to the world other than oil: We produce dates, oils and marine products, and we also have advanced food industries," he added.

A 2008 study prepared by the centre indicated that Libya was not maximizing its trading capacity, resulting in waste. In the fishing industry, for example, Libyan fishermen caught 37,000 tons of fish, of which only 6,000 tons were consumed.

Diversification is also a major stumbling block. The hydrocarbons sector represents about 72% of GDP and accounts for 95% of all Libyan export revenues.

IMF representatives who visited Libya in 2006 cited numerous restrictions on foreign trade and stressed the need to remove them. They also said that Libya's economic governance requires restructuring to best serve the country's needs. - Magharebia