Interview: Hussein Mohamed Altaher Issa
Where do you see economic shifts following the Covid-19 pandemic and other global uncertainties?
HUSSEIN MOHAMED ALTAHER ISSA: The pandemic and recent instability have led to longer-term economic shifts in Libya and around the world. Previously, Libya’s economy relied primarily on oil. However, after the revolution and subsequent changes in government, people have begun to embrace innovative thinking. Recognising the impermanence of oil as the sole source of revenue, they started considering alternative options.
Misrata, in particular, holds promise as a destination for entrepreneurs seeking to invest in a dynamic market with the right people and mindset. Businesses in Misrata have faced challenges adapting to the uncertainties brought about by the pandemic and other factors. Navigating this landscape has been unpredictable, without clear guidelines and parameters. As such, the economy’s progress has been driven by market needs, and many firms have resorted to self-funding to sustain their operations.
In what ways are private sector businesses able to contribute to economic expansion?
ISSA: The private sector is key to Misrata’s economic growth. As the third-largest city in Libya, Misrata boasts strategic logistical advantages, making it an attractive destination for investment, especially with its well-established seaport handling 53% of the country’s container traffic. There is also a plan to expand transit shipments to the continent, enhancing Misrata’s appeal to potential investors. However, it is worth noting that transport within the country relies solely on trucks. This presents opportunities for expansion in the transport sector, including the introduction of railways and advancements in the airline industry.
Historically, the private sector had a substantial presence in Libya’s economy, representing around 86-90% of the government’s involvement before 1969. However, under the Gaddafi administration, the private sector’s influence diminished, and the government assumed control over most sectors. Since 2011 the private sector has steadily regained strength in the wake of political changes, accounting for approximately 60-70% of market shares. The private sector will be crucial in driving Misrata’s economic development and prosperity as it continues to grow amid further policy liberalisation and investment.
What opportunities do you see to boost investment in local manufacturing to help localise supply chains and reduce imports?
ISSA: Libya holds key opportunities for supply chain localisation and the reduction of imports by channelling investment into local manufacturing, particularly given increases in global food prices. The country has the potential to achieve self-sufficiency in a number of sectors, and local manufacturers are actively working towards this goal. Strategic investment in domestic manufacturing strengthens the economy and reduces reliance on imports, paving the way for stability and further growth.
The transformation of Libya from a consumer-centric country to one driven by a flourishing manufacturing industry is increasingly evident, despite the backdrop of political instability. Industries are seeing progressive changes with new factories emerging in industrial zones. Private sector endeavours have diversified manufacturing, although some challenges remain. The opportunities within the country are vast, making Libya a compelling destination for prospective investment. Visitors to Libya, even for a brief trip, quickly discover the contrast between the peaceful environment and prior perceptions they had formed from media representations. Libya’s untapped potential makes the country an ideal destination for successful ventures and investment in the years ahead.
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