Despite recent successes, unrest has affected market networks and access to resources for agricultural production. It has also hindered progress in mitigating the effects of climate change, amplifying the adverse effects on agriculture, livelihoods, and food and economic security. Given the disruptions to market linkages and purchasing power in recent years, bolstering food security and ensuring the affordability of key goods will play a central role in the sector’s development going forwards.
There are various prospects for improvement in Libya’s agriculture sector. These include investment in irrigation infrastructure to expand the irrigated land area, the promotion of sustainable land-management practices, and the enhancement of farmers’ access to credit and other financial services. Additionally, there is potential to augment productivity and efficiency within the sector by embracing emerging technologies and practices, such as precision agriculture and enhanced seed varieties. Lastly, strengthening access to market infrastructure and the capacity of agricultural extension services, along with improving farmers’ access to information and training, will encourage business growth and create additional economic opportunities. As an indicator that businesses are beginning to stabilise, in December 2020 the Misrata Pasta Factory returned to production after five years of inactivity. The factory reported that daily production capacity will reach 50 tonnes of pasta.
The core focus of Libya’s food manufacturing segment lies in producing essential foodstuffs, including pasta, bread, dairy products and canned goods. The sector predominantly comprises small and medium-sized enterprises (SMEs). Among the targeted areas to unlock further growth in the segment are access to financing and the procurement of reliable raw materials, due to the country’s arid climate, limited arable land and agricultural investment deficit.
While some obstacles remain, there are prospects for growth and advancement, particularly as the urban population’s demand for processed and packaged foods continues to increase. Organisations such as AlJaied Company for Food Industries, Al Mourooj, Al Naseem for Food Industries, Riyadh Food Industries Company and Whiba Holding’s United Group for Mills and Feeds are among the major food manufacturers that operate in Misrata, anchoring the industry and contributing to the further development of the local talent pool.
Recognising the sector’s significance, the government has prioritised food production for investment, actively fostering private investment and extending support to SMEs. The prospect of a unified government opens the door to increasing food exports to neighbouring countries from their current level of around $10m annually as trade deal negotiations and foreign relations see improvements through stronger and more effective policy-making.
Read More from OBG
