Libya: African Development Bank reaffirms support for economic diversification and reconstruction plans | African Development Bank

The African Development Bank has reiterated its full support for Libya’s reconstruction and economic stabilization efforts. The pledge was made during the bank’s first high-level mission to Libya since 2014. The bank will support the country’s efforts to accelerate its economic diversification agenda, including promoting investment opportunities, in line with the strategy of the bank aimed at strengthening institutional capacity and improving economic infrastructure.

The delegation, led by the African Development Bank’s Director General for North Africa, Mohamed El Azizi, met with the Minister of Finance and the Libyan Governor of the African Development Bank, Dr. Khalid El Mabrouk. They discussed areas of banking intervention in various sectors, including water, agriculture, industry, energy and renewable energy, transport and governance.

El Mabrouk reaffirmed the government’s priorities, including its ambitious public finance management reform programme. The Bank reaffirmed its willingness to support this program as well as resources to diversify the economy away from oil and hydrocarbons through private sector development and unlocking the potential of renewable energy.

The Bank invited Libya to actively participate in the Africa Investment Forum as an opportunity to attract investment to the country.

The delegation met with Libyan Economy and Trade Minister Mohamed Al-Huwaji, who welcomed the bank’s efforts to support the country, and in particular its continued support for the national economic diversification agenda. Al-Huwaji stressed that Libya is seeking stronger ties with Africa and Europe through effective partnerships and trade corridors. In light of the need for urgent solutions to the food security crisis, and building on the Dakar 2 summit on food sovereignty and resilience in January, the delegation and Al-Huwaji identified value chains, such as fisheries and wheat, around which to collaborate further.

The delegation participated in the Third Development Partner Forum on Libya’s Health, held under the auspices of Prime Minister Abdulhamid Dabaiba on 28 February 2023. The bank took stock of health sector initiatives in Libya and explored future policy reforms and support options. The Forum provided an opportunity for Libyan authorities and development partners to discuss how best to pool efforts to meet Libya’s huge needs in this sector.

In his comments to the forum, El Azizi shared the bank’s experience in strengthening national health systems across Africa. “It is important to scale up the quality of healthcare infrastructure in Libya with clear roles for public and private stakeholders,” said El Azizi. He also mentioned the possibility for regional solutions to build on the experiences of neighboring countries.

Malinne Blomberg, the bank’s deputy director general for North Africa and country manager for Libya, said the mission identified additional interventions through which the bank will complement Egypt’s efforts to build strong institutions and a diversified economy as part of the reconstruction of Libya.

Other members of the team included Yasmine Eita, program officer for the country; Josiane Hodonou, health expert; Mamoru Endo, governance expert; and Iyad Dhaoui, policy economist.