Interview: Mohamed Al Za’louk
How are factors such as consumer demand and affordability affecting investment and local companies in the agriculture and food industry?
MOHAMED AL ZA’LOUK: Consumer demand and affordability are critical drivers shaping investment in the agriculture and food industry both locally and internationally. The Covid-19 pandemic had a considerable impact on consumer preferences, leading to shifts in demand patterns and consumption habits as people’s routines changed. While demand has recovered for the most part, the volatility in oil and gas prices, as well as the impact of Russia’s invasion of Ukraine, have created uncertainties, particularly in the global food market. Food manufacturers have had to adapt swiftly to these changes, sometimes by offering products that align with consumers’ evolving needs and preferences, and sometimes by sourcing ingredients or materials from local suppliers when feasible.
To what extent can Misrata’s infrastructure and connectivity support the production and distribution activities of local manufacturers?
AL ZA’LOUK: The city’s strategic advantages, including the presence of the Misurata Free Zone and the Port of Misrata, offer immense opportunities for trade and investment. The Port of Misrata, in particular, is a crucial gateway for importing raw materials and exporting finished goods and other products. Moreover, Misrata’s well-connected and extensive road network linking to other locations in Libya is a testament to the city’s efforts to revitalise and enhance its infrastructure post-conflict.
Progress in developing roads and infrastructure has undoubtedly contributed to the city’s economic growth and resilience. However, continuing to strengthen and expand Misrata’s infrastructure is essential to cater to the evolving demands of both businesses and residents. Robust and efficient infrastructure will foster a conducive business environment, attract more domestic and foreign investment, and facilitate the seamless movement of goods and services, bolstering Misrata’s position as an economic centre in Libya.
What do you see as the challenges for Libyan food industry companies looking to export to neighbouring markets in Africa and Europe?
AL ZA’LOUK: Other countries’ implementation of international agreements often hampers access to African and European markets. Despite offering unique and high-quality goods and services, Libyan products face restrictions and barriers that limit their export potential. Addressing these obstacles requires unified diplomatic efforts to foster fair trade and open market access. Reducing trade barriers is known to be one of the keys to building consistent economic growth. For example, the African Continental Free Trade Area (AfCFTA) aims to create a single market for goods and services across the African continent, facilitating intra-African trade and enhancing economic integration. If the AfCFTA was effectively implemented and Libya could participate, Misrata’s manufacturers would have the potential to tap into a market of more than 1bn consumers.
At the same time that local manufacturers struggle to access export markets, Misrata’s agriculture sector and food industry have relied on imports for specific inputs. Reduced trade barriers would improve efficiencies in this area as well. In recent years there have been notable improvements in self-sufficiency, to the extent that is possible to source up to 90% of the food sector’s raw materials locally. However, there is still room for growth, which could substantially benefit the country’s economy and the manufacturing sector. Technology integration is also playing a vital role in reshaping agriculture and food production by improving quality, consistency and manufacturing efficiency.
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