Benghazi attack a setback for Libya FDI
The attack on the US consulate in Benghazi has deterred some investors and forced the government to focus on security rather than much-needed reforms and rebuilding, Reports Al Ahram.
Source : https://www.marocafrik.com/english/Benghazi-attack...
The attack has meant that companies have increased security and restricted their staff’s movements. As one foreign businessman pointed out insurers for company officials may raise premiums for Libya or refuse insurance altogether which happened in Algeria during the height of the terrorist campaign.
International oil companies were the first to return to the country after the uprising, helping oil production return to almost pre-war levels of 1.6 million barrels per day.Nuri Berruein, the chairman of the Libya's state-run National Oil Company confirmed that once the Wintershall pipeline came on stream the prewar target of 1.8 million barrels per day would be achieved in 2013.
Many infrastructure projects and new oil and gas exploration projects are awaiting approval by the new government of Prime Minister Mustafa Abushagur which has still to be appointed.
The article suggests however that many investors including the Chinese are likely to invest long term as Libya’s underdeveloped infrastructure and private sector begins to grow. It notes interest in Libya’s telecommunications sector citing fact that there are only two Libyan mobile operators There are only two mobile operators, Al Madar and Libyana, which are both state-owned and a number of foreign telecom operators have been eying Libya including Etisalat of the United Arab Emirates, Qatar Telecom (Qtel) and Saudi Telecom and that foreign telecom operators have been eying Libya including Etisalat of the United Arab Emirates, Qatar Telecom (Qtel) and Saudi Telecom. In 2010, 14 per cent of people in Libya were using the Internet, according to the International Telecommunications Union, compared with 49 per cent in Morocco, 37 per cent in Tunisia and 27 per cent in Egypt this suggests potential for growth.
However Benghazi is likely to take time to recover following years of negelect by Gaddafi and continuing uncertainty and instability is not encouraging investment. The new government, when it is formed will have a giant task to put Libya on track for future growth.
International oil companies were the first to return to the country after the uprising, helping oil production return to almost pre-war levels of 1.6 million barrels per day.Nuri Berruein, the chairman of the Libya's state-run National Oil Company confirmed that once the Wintershall pipeline came on stream the prewar target of 1.8 million barrels per day would be achieved in 2013.
Many infrastructure projects and new oil and gas exploration projects are awaiting approval by the new government of Prime Minister Mustafa Abushagur which has still to be appointed.
The article suggests however that many investors including the Chinese are likely to invest long term as Libya’s underdeveloped infrastructure and private sector begins to grow. It notes interest in Libya’s telecommunications sector citing fact that there are only two Libyan mobile operators There are only two mobile operators, Al Madar and Libyana, which are both state-owned and a number of foreign telecom operators have been eying Libya including Etisalat of the United Arab Emirates, Qatar Telecom (Qtel) and Saudi Telecom and that foreign telecom operators have been eying Libya including Etisalat of the United Arab Emirates, Qatar Telecom (Qtel) and Saudi Telecom. In 2010, 14 per cent of people in Libya were using the Internet, according to the International Telecommunications Union, compared with 49 per cent in Morocco, 37 per cent in Tunisia and 27 per cent in Egypt this suggests potential for growth.
However Benghazi is likely to take time to recover following years of negelect by Gaddafi and continuing uncertainty and instability is not encouraging investment. The new government, when it is formed will have a giant task to put Libya on track for future growth.
Source : https://www.marocafrik.com/english/Benghazi-attack...