Companies urged to take cautious approach to Libya
COMPANIES looking for business opportunities during the reconstruction of Libya have been advised to take “a considered, strategic and active approach”.
Trade Minister Lord Green said British companies would have to role to play in the rebuilding of the country but for now, it was in the UK’s national interest to build a long-term relationship with Libya and to begin with, err on the side of caution.
“At the political level, the UK is doing all it can to help. We fully understand that the immediate priority for the Libyan authorities is in restoring security and meeting humanitarian needs. But we also know that getting the Libyan economy up and running is essential for its long-term political stability, and that getting assets unfrozen is a priority,” he said.
“Our advice, when it comes to doing business with Libya, can be summed up in the words: ‘strategic patience and persistence’. I am convinced that it’s in the UK’s interests to build a long-term relationship with Libya.”
Libya’s economy is expected to rebound strongly from the conflict, with the UN forecasting growth rates of 4.2%, well above the international average.
The post-conflict reconstruction programme is estimated to require over $200bn in expenditure over the next 10 years. The Transitional Government is not expected to sign any major contracts, except in the most urgent areas, pending next year’s elections.
UKTI is working closely with the Transitional Government to identify priority areas where the expertise of UK businesses can add most value to the reconstruction programme, both immediately and in the longer-term.
UKTI has also increased its presence in Libya. The team has identified key areas where UK businesses can help, including: airports and ports; education; infrastructure; oil and gas; health; and policing.
To date, it has worked constructively with the Transitional Government and has engaged with more than 500 UK businesses.
UK Export Finance, formerly known as the Export Credits Guarantee Department, has increased its risk capacity for Libya to £375m – up from the £150m made available immediately after hostilities ended in September.
Firms of all sizes can now obtain via UK Export Finance, insurance against the risk of non-payment on overseas contracts, and can get help with working capital to fulfil large orders.
