Author: eulyadmin

As we stand on the cusp of a new era in Libya’s economic development, the Euro-Libyan Trade Center (ELTC) proudly announces its endorsement of the groundbreaking Deraya Entrepreneurship Initiative. This pioneering program marks a watershed moment for entrepreneurship in Libya, catalyzing job creation and fostering inventive enterprises. Deraya is not merely an initiative; it’s a promise of a prosperous future, offering a profound transformation for Libyan entrepreneurship. As we delve deeper into this exciting journey, prepare to witness a powerful narrative of innovation, resilience, and an unyielding vision of progress.

Confronting Obstacles with Innovative Solutions

As is often the case in emerging markets, young entrepreneurs in Libya face an array of challenges. These include barriers to accessing markets, constraints in obtaining necessary financial resources, and the intricate process of navigating the country’s complex regulatory and administrative systems. Recognizing these obstacles, the Deraya initiative was specifically developed to alleviate these hardships. By providing the essential knowledge and tools needed, this program is empowering entrepreneurs to transform innovative ideas into successful business ventures.

Synergizing for Sustainable Change

The Deraya initiative is not an isolated project; it’s the result of a committed collaborative effort between multiple key players. Spearheaded by the Ministry of Local Government (MoLG), United Nations Development Programme (UNDP), the European Union (EU), and the African Development Bank (AfDB), this synergy manifests a shared vision and dedication to nurturing a vibrant entrepreneurial ecosystem in Libya. This collaboration also represents a practical and strategic approach to economic development, involving local and international entities that bring to the table diverse perspectives and resources.

Prioritizing Youth and Vulnerable Groups

The Deraya initiative targets the youth and vulnerable groups, prioritizing individuals aged between 18 and 35. The decision to target this specific demographic is intentional and strategic. Young people bring to the entrepreneurial scene fresh ideas, adaptive mindsets, and transformative energy that are vital for economic revitalization. Furthermore, by focusing on vulnerable groups, the program directly addresses socio-economic disparities, promoting an inclusive approach to entrepreneurship that maximizes opportunities for all.

Deraya Entrepreneurship’s Multi-City Approach

With the aim of nurturing entrepreneurship across Libya, the initiative includes startup weekends hosted in various cities, including Tripoli, Benghazi, Sebha, and Derna. This multi-city approach ensures that the program reaches a diverse pool of potential entrepreneurs, thereby maximizing its impact. It also encourages a sense of healthy competition, culminating in a pitch contest that serves to reward innovation and business acumen with essential financial support.

Building the Infrastructure for Sustainable Entrepreneurship

As part of the strategy to ensure the long-term sustainability of the initiative, entrepreneurs will be connected with newly established municipal business incubators. These incubators, set up in collaboration with MoLG and UNDP, provide the necessary technical support for startups to thrive. The incubators represent a valuable resource for budding entrepreneurs, offering mentorship, networking opportunities, and access to resources that might otherwise be out of reach.

The Key to Libya’s Economic Prosperity

EU Ambassador Mr. José Sabadell and Mr. Mohamed El Azizi, Regional Director for North Africa at the African Development Bank, both emphasized the central role that young entrepreneurs play in driving Libya’s economic prosperity. They are the lifeblood of a diversified Libyan economy, a robust private sector, and the creation of new jobs. They embody the promise of economic diversification, embodying the transformative potential of entrepreneurship.

Harnessing the Power of a Consortium

To facilitate the successful implementation and execution of the Deraya initiative, it draws upon the expertise of a powerful consortium, composed of Flat6Labs, Tatweer Research, and MAZAM. These organisations bring their extensive experience and specialised knowledge to the table, having helped young entrepreneurs in the Middle East and Africa to launch successful ventures. This collaboration enhances the initiative, enriching it with the diverse competencies and resources of its partner institutions.

Moreover, at the heart of the Deraya initiative is a profound commitment to the future economic prosperity of Libya. This future is envisaged to be driven by young entrepreneurs with forward-looking ideas that promise to bring economic diversification and employment opportunities. The initiative, therefore, represents a step towards the realization of this vision.

An Ambitious Step Forward

As the ELTC celebrates the launch of the Deraya initiative, we do so with anticipation and confidence in its potential to transform the entrepreneurial landscape of Libya. This groundbreaking initiative stands as a testament to the collaborative efforts of national and international entities, united in their resolve to stimulate economic growth and empower the next generation of Libyan entrepreneurs. While this is just the beginning of our journey, we are enthusiastic about the direction we are headed, anticipating the many successes and achievements that lie ahead.

Revolutionizing the Energy Landscape in Libya

Amidst an evolving global energy landscape, Libya has embarked on a bold journey to revamp its renewable energy sector. Under the aegis of Tripoli-based Libyan Prime Minister Abd Alhamid Aldabaiba, a groundbreaking renewable energy investment workshop was convened on 11th May. High-ranking representatives, including ministers, investment companies’ directors, and agents, along with members of the Central Bank of Libya, the Audit Bureau, the General Electricity Company of Libya (GECOL), and the Renewable Energy Authority of Libya (REAoL), attended the meeting. The assembly signaled a pivotal turning point, showcasing the nation’s commitment to a future less dependent on fossil fuels and more reliant on renewable energy sources.

Overcoming the Obstacles and Embracing Renewables

For years, restrictive legislation had been a significant obstacle, hindering foreign companies from delving into Libya’s renewable energy sector. The landscape is rapidly changing. The Libyan government, in collaboration with international experts and foreign investors, has made substantial progress. The overarching aim is to address Libya’s electricity needs sustainably, reduce carbon emissions in line with international norms, and commence renewable energy exports to southern European countries.

The Sadada Solar Energy Project: A Turning Point in Libya’s Energy Story

An integral part of Libya’s transformation lies in the landmark Sadada Solar Energy Project. Launched in June 2022 by Total Energies, in cooperation with GECOL and REAoL, this venture represents a significant milestone. This initiative, set to be the country’s largest of its kind, is a testament to Libya’s commitment to renewable energy. Furthermore, it marks the convergence of Libya’s incredible solar potential – averaging 3,200 hours of sunshine per year – and the global shift towards cleaner, renewable energy sources.

Sustainable Investment and Diversification

The ongoing transition in Libya is about more than just harnessing the sun’s power. It’s about creating an environment conducive to investment and the nurturing of partnerships. The State Audit Bureau’s Sovereign Sector Oversight Department, for instance, has committed to diversifying income sources, including investing in renewable energies, in a transparent and accountable manner. The Libyan Investment Authority (LIA), through its subsidiary, The Libyan Foreign Investment Company, is considering the establishment of a new national renewable energy company. This would be in partnership with a foreign company, bringing vital technical expertise to the Libyan market and building a robust foundation for the nation’s renewable energy future.

A New Era of Renewable Energy Strategy

Integral to this new era is the redesign of Libya’s national renewable energy strategy. This process includes pivotal modifications, such as allocating public land for renewable energy projects at no cost for investors and providing access to zero-interest credit. This novel approach also involves offering fiscal incentives to foreign companies, such as a zero percent corporate tax rate, exemption from income tax for foreign workers, and freedom from VAT, customs, and other governmental tax obligations during their first five years of operation.

Empowering Change through the Euro-Libyan Trade Center

The Euro-Libyan Trade Center plays a crucial role in Libya’s transition. By advocating for investments and connecting investors with opportunities in the sector, it fosters economic development and paves the way for sustainable growth. The center acts as an instrumental force in the drive towards a future where Libya is less dependent on oil exports, achieves greater energy security, and meets its sustainability goals.

Conclusion: A Vision for a Sustainable Libya

In conclusion, Libya’s journey into renewable energy is not merely about fulfilling energy requirements. It’s about a broader vision of sustainable development, economic growth, and environmental preservation. With the groundwork laid by initiatives like the Sadada Solar Energy Project and forward-thinking policy reforms, Libya is poised to unlock the immense potential of its renewable energy sector, redefining the nation’s energy landscape and marking a new era of sustainable prosperity.

The state-owned General Electricity Company of Libya has signed an agreement with Qatari and Egyptian contractors to build a gas-fired power station in Zliten, a city located approximately 160 km east of the capital, Tripoli. The emergency power plant project will include six turbine units with a total production capacity of 1044 megawatts, aiming to address the long-standing electricity crisis that has plagued the country for more than a decade.

UCC Holding and Elsewedy Electric Secure Contract to Build the Power Plant

The EPC contract for the power plant project in Zliten was awarded to UCC Holding of Qatar and Elsewedy Electric of Egypt. Siemens, the German company, will supply the six turbine units, according to a statement from the Libyan News Agency. The signing ceremony, witnessed by HE Abdul Hamid al-Dabaiba, Prime Minister of the National Unity Government of Libya, took place at the Prime Minister’s Office in Tripoli.

The €1.19 Billion Project is Expected to Take 26 Months to Complete

The total value of the project is €1.19 billion, and it is expected to be completed within 26 months. The project is a significant step towards improving the country’s energy infrastructure and addressing the electricity crisis in Libya. During the signing ceremony, the Prime Minister emphasized the government’s commitment to intensifying its efforts to address the electricity problems that have exhausted Libyans for more than ten years.

UCC Holding and Elsewedy Electric to Work on Other Projects to Improve Electricity Network

Chairman Mohammed Al Mashai of the General Electricity Company said that his company intends to work on maintenance of transmission lines, major overhauls, and the construction of new stations, including those for southern Tripoli and the Zliten emergency station. These efforts aim to provide network stability and ensure sustainable and reliable access to electricity for Libyan citizens.

Impact of the Power Plant Project on Economic Growth and Living Standards

The gas-fired power plant project in Zliten, Libya, is expected to have a significant impact on the region’s economy and improve the standard of living for local residents. The project will provide electricity to thousands of homes in the region, and the construction of the power plant is expected to have a positive impact on the local job market in Zliten. The project is a significant step towards improving the country’s energy infrastructure and addressing the longstanding electricity crisis in Libya.

A Significant Step towards Addressing Libya’s Electricity Shortage

This project marks a significant step towards improving the country’s energy infrastructure and addressing the longstanding electricity crisis in the country. The project, which is expected to take 26 months to complete, will not only provide electricity to thousands of homes but also have a positive impact on the local job market. Euro-Libyan Trade Center remains committed to helping build a brighter future in Libya, and suppporting this project is a vital piece of the puzzle in achieving that goal.

The unseasonably warm winter and plentiful liquefied natural gas (LNG) imports into Europe are tempering concerns for a supply crunch and rationing during the restocking of natural gas reserves this spring. However, experts warn of looming risks for the region with a tight supply outlook for years to come. The market had initially braced itself for a harsh winter and China’s return to the LNG spot market, neither of which materialized. Despite the higher than average storage levels at the start of the heating season, prices only recently began to ease as concerns about supply started to subside.

Ample Regional Gas and LNG Stocks

Thanks to the mild winter, gas and LNG stocks have remained adequate to meet demand, allowing some countries such as Germany to make substantial injections into storage. Europe’s natural gas inventories were 32 billion cubic meters higher than the same time last year, and storage levels could be twice as high as last year’s and closer to the five-year average. Morgan Stanley analysis estimate that Europe could exit winter with storage levels around 50% full, and the region’s healthy reserves at the end of winter could help stabilize prices.

Reducing Price Spikes

The International Energy Agency’s (IEA) model predicts that Europe will have a 27 billion cubic meters supply gap after the heating season, which would need to be filled mostly by US LNG suppliers. Still, the supply outlook for Europe is in competition with China and other Asian LNG buyers for cargoes. If China’s LNG demand growth is modest in 2023, the flow of additional volumes to Europe may be partially offset by potential import declines from Japan and South Korea, reducing the chances of spring price spikes. However, there remains an upside risk from the substantial annual decrease in Russian gas flows to Europe, leaving the market exposed to gas price volatility from multiple factors such as weather, infrastructure/supply issues.

Fundamentally Undersupplied

Europe is still facing a fundamentally tight natural gas market until at least 2024 when significant additions of US LNG capacity come online. Jason Feer, global head of business intelligence at Poten & Partners, estimated that Europe would continue to secure the majority of LNG cargoes for the next year, barring an economic recession. The main challenge is how to do it repeatedly without the benefit of relatively cheaper Russian pipeline gas. Feer said the focus has been on “let’s not freeze to death this winter,” but the critical question is how to meet the challenge for the next few years.

Russia’s Role

Russian pipeline gas flows are down around 80% compared to the same period last year, the IEA estimated. There is a chance that Russia could further reduce volumes to influence market volatility at opportune times, but experts believe it has an incentive to keep gas flowing as long as possible. While Russia has previously shown that it is not necessarily driven by economic or emotional rationality, it is not the Europeans who are not taking Russian natural gas.

Opportunity for Libya

The natural gas supply shortfall in Europe is also an opportunity for other countries to fill the gap. Libya is one such country, as it has been increasing its natural gas production after its civil war, and Libya‘s proximity to Europe makes it an ideal candidate for supplying natural gas to the region. The government has outlined its plans to increase its production to 2 billion cubic feet per day in the coming years. Libya has significant natural gas reserves and the potential to become a vital supplier to Europe. As Europe looks to diversify its natural gas sources, Libya could potentially fill the gap left by Russia’s reduced exports.

In conclusion, the warm winter in Europe and ample LNG imports have eased concerns about natural gas restocking, but the region still faces a tight supply outlook for the next few years. The high levels of gas and LNG stocks at the end of winter could help temper prices as traders weigh Europe’s supply outlook against its ability to compete with Asian LNG buyers for cargoes. However, the market remains exposed to gas price volatility from multiple factors such as weather and any unplanned infrastructure/supply issues. Europe’s upside risk is the fact that it still faces a fundamentally tight natural gas market until at least 2024, when substantial additions of U.S. LNG capacity come online.

Despite the challenges, the current situation presents an opportunity for Libya, which has the potential to become a significant player in the European gas market. The country’s vast reserves of natural gas and its strategic location make it an ideal supplier for Europe. The recent political developments in Libya have created a favorable environment for foreign investment in the country’s energy sector, and many international companies are showing interest in exploring the country’s gas potential.

If Libya can successfully harness its natural gas resources and build the necessary infrastructure to export it to Europe, it could help alleviate the tight supply outlook and reduce Europe’s dependence on Russia. This would not only benefit Europe but also provide a significant boost to Libya’s economy, which has been struggling since the 2011 revolution. It is crucial for Libya to seize this opportunity and work towards becoming a reliable supplier of natural gas to Europe.

Consequently, while the current situation in Europe’s natural gas market presents challenges, it also offers opportunities for countries like Libya to establish themselves as key players in the market. As the world transitions to cleaner energy sources, natural gas will continue to play a vital role in meeting energy demands, and it is essential to ensure a reliable and diversified supply.

Libya’s Transport Minister, Mohamed Al-Shahubi, and the Ambassador of Niger recently discussed practical steps for the transit road project linking Misrata, Tamanhint, and Agadez. The construction of the transit trade road between Libya and Niger was agreed upon in an MoU signed during the “Made in Libya” exhibition held in Niamey from March 14 to 19. The transit route will run from Misrata Free Zone on the Mediterranean coast of Libya through the Tamanhant Free Zone in southern Libya, near Sebha, and on to Agadez in central Niger.

Strengthening Historical Relations

During the meeting, the two officials praised the depth of historical relations between Libya and Niger and expressed their intention to strengthen them further to serve the interests of the two peoples. The Libyan Transport Ministry said the MoU comes within the framework of activating economic cooperation and supporting investment programs between the two countries. It aims to implement the opening of a strategic arterial road linking Libya as the gateway to Africa with the countries beyond the Sahara.

Potential Gains for the Economy

The Ministry added that the project would constitute a quantum leap for the economy of the two countries with achievable gains. These include the potential transformation of the region into a center for trade, the flow of goods and merchandise, and the movement of transit and transport. The transit road project would not only provide a faster and more efficient route for transporting goods and services, but it would also create new economic opportunities for businesses in Libya and Niger.

Boosting Regional Integration

The Misrata-Tamanhint-Agadez transit road project is part of a broader effort by African nations to strengthen regional integration and trade. The African Continental Free Trade Area (AfCFTA) agreement, which entered into force on January 1, 2021, aims to create a single market for goods and services, facilitate the movement of capital and people, and promote economic integration. By building a transit road that connects Libya with Niger and beyond, the two countries will contribute to realizing the vision of the AfCFTA and promote economic growth and development in the region.

Challenges Ahead

While the Misrata-Tamanhint-Agadez transit road project holds great promise for Libya and Niger, there are also significant challenges that need to be addressed. The security situation in the region is a major concern, as the route passes through areas that are prone to armed conflict and terrorist activities. The two countries will need to work closely with each other and with international partners to ensure the safety and security of the transit road.

Conclusion

The Misrata-Tamanhint-Agadez transit road project is a significant milestone in the economic cooperation between Libya and Niger. By building a transit road that connects the two countries, they will create new economic opportunities, boost regional integration, and promote economic growth and development. While there are significant challenges ahead, the two countries are committed to overcoming them to realize the full potential of the project.

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Libya’s National Oil Corporation (NOC) chief, Farhat ben Gudara, announced plans for an oil and gas licensing round in 2024 at the CERAWeek by S&P Global conference in Houston. The bid round would be the country’s first since 2007, signaling Libya’s return to business after over a decade of political instability. Despite its challenges, NOC is working towards boosting output to two million barrels per day within the next three to five years, according to Argus estimates.

Exploration Drilling Plans for Eni and BP

The NOC chief also confirmed that Eni and BP would carry out exploration drilling plans on three large blocks. Eni will operate two onshore blocks in the Ghadames basin, while the third offshore block is in the Sirte basin. Ben Gudara confirmed that offshore drilling is scheduled for 2024. The third block, known as “Area C” is larger than some countries, and the geological and seismic studies conducted so far suggest that it has the potential to produce more gas than Egypt’s Zohr field. However, the ambitious goals of Libya would require significant investments in infrastructure.

Eni’s $8 Billion Offshore Gas Project Deal

Eni’s $8 billion offshore gas project deal with Libya earlier this year is set to unlock around 760mn ft³/d of gas to bolster domestic production and exports. However, the agreement is mired in uncertainty, with several political factions rejecting it. The Structures A&E project, which has a targeted start-up date of 2026, is yet to receive FID from Eni. Meanwhile, NOC is working with Eni to cut gas flaring at offshore production facilities as part of a $1.2bn project.

Investments in Infrastructure

Libya’s ambitious goals of boosting output and infrastructure require significant investments. Ben Gudara talked about the possibility of an LNG liquefaction plant, possibly a replacement for Libya’s Marsa el Brega LNG facility, which has been mothballed since the 2011 civil war. He also suggested building a gas pipeline to Egypt for potential tie-ins to the 7.2mn t/yr Idku facility and the 5.5mn t/yr Damietta terminals, which the country plans to expand over the coming years.

Meeting Domestic Demand

Meeting domestic demand is Libya’s most pressing challenge. The country currently produces only 1.3bn ft³/d of gas, barely enough to feed itself. Gas exports through the Greenstream pipeline, Libya’s only gas export outlet, are regularly capped to meet domestic needs. The pipeline’s volumes hit their lowest since the 2011 revolution last year, averaging 250mn ft³/d, a third of its nameplate capacity. Volumes so far this year have slightly increased to 265mn ft³/d. Libya regularly has blackouts in peak summer months due to a lack of fuel for power plants.

Political Fragmentation and International Interests

UN Libya envoy Abdoulaye Bathily has outlined a plan for the country to hold elections this year, but internal squabbling and competing international interests remain key obstacles. Libya remains politically fragmented, with loosely aligned western and eastern factions vying for power. The country has been starved of international capex since 2011, with planned projects still stuck on the drawing board. The success of the planned oil and gas licensing round in 2024 remains uncertain due to these challenges.

Conclusion

In conclusion, Libya‘s announcement of an oil and gas licensing round in 2024 is a significant step towards restoring the country’s energy sector after years of political instability. The country’s ambitious goals of boosting output and infrastructure require significant investments and overcoming key challenges, including political fragmentation and competing international interests. However, with the exploration drilling plans for Eni and BP and the possibility of building an LNG liquefaction plant and a gas pipeline to Egypt, there are positive signs for the future of Libya’s oil and gas industry. The success of the planned licensing round remains uncertain, but it presents a vital opportunity for the country to attract international capex and drive its economic growth.

The Libyan Ministry of Health has announced the launch of the National Strategy for Primary Healthcare 2023-2028 and the proposed Health Sector Plan for 2023. These initiatives will focus on enhancing the efficiency of healthcare services and improving the overall health of the population.

National Strategy for Primary Healthcare 2023-2028

The National Strategy for Primary Healthcare 2023-2028 aims to improve the efficiency of the first level of healthcare services in Libya. This is essential as primary healthcare is the backbone of any healthcare system and serves as the first point of contact for patients seeking medical care.

The strategy will focus on enhancing the quality of medical services provided by group clinics, health centres and units, and implementing family medicine and a referral system. The strategy aims to provide comprehensive and accessible healthcare services to all citizens, regardless of their location or socio-economic status.

The National Strategy for Primary Healthcare 2023-2028 will be implemented in three phases, with each phase covering all regions of Libya. The implementation of this strategy will result in the adoption of a unique health number for each citizen, which will enable the creation of an electronic health record for each patient.

Health Sector Plan for 2023

The proposed Health Sector Plan for 2023 is the first of its kind in over twelve years. The last national plan to reform the health sector in Libya was launched more than twelve years ago, approved and implemented. The Health Sector Plan for 2023 aims to restructure the health system in Libya and integrate it into one administrative unit.

The plan will focus on the distribution of healthcare services among the six health regions based on population size and priority. It aims to ensure that all citizens have access to essential healthcare services, including preventive and curative healthcare, mental healthcare, and emergency care services.

Benefits of the National Strategy for Primary Healthcare 2023-2028 and Health Sector Plan for 2023

The National Strategy for Primary Healthcare 2023-2028 and Health Sector Plan for 2023 have numerous benefits for the Libyan population. The implementation of these initiatives will enhance the efficiency and quality of healthcare services and improve the overall health of the population.

The adoption of a unique health number for each citizen will enable the creation of an electronic health record for each patient, ensuring easy access to medical records, which will facilitate timely and appropriate treatment for patients. The restructuring of the health system will ensure that healthcare services are distributed based on population size and priority, ensuring that all citizens have access to essential healthcare services.

Conclusion

The National Strategy for Primary Healthcare 2023-2028 and Health Sector Plan for 2023 are significant initiatives that will improve the efficiency and quality of healthcare services in Libya. The implementation of these initiatives will ensure that all citizens have access to essential healthcare services, regardless of their location or socio-economic status.

The adoption of a unique health number for each citizen and the creation of an electronic health record for each patient will enhance the efficiency and quality of healthcare services, ensuring timely and appropriate treatment for patients. The restructuring of the health system will ensure that healthcare services are distributed based on population size and priority, enhancing the overall health of the population.