Industrial sectors in the upcoming reconstruction of Libya
I participated in a dialogue session at the Libya Build Exhibition in Benghazi, where I shared my thoughts on the role of industrial sectors in the upcoming reconstruction of Libya.
I wrote an article previously on the Reconstruction- Rebuild of Libya — a Big Challenge.
Here is the link to my article:
https://altarbaghia.medium.com/reconstruction-rebuild-of-libya-a-big-challenge-9f626d5508da
In the exhibition, I added my thoughts on the industrial sectors and their role in the upcoming development.
Benghazi, which is far from centralization of the public sector that Tripoli leads, has succeeded to some extent in settling and thriving with small and medium enterprises (SMEs) in the industrial, Trade, services, and supply Chain sectors, these are promising signs.
One way to make the reconstruction program subject to citizen leadership is to involve the private sector. A post-conflict government will have neither the resources nor the capacity to rebuild the economy. But the private sector can play the role of the engine of growth.
The government should encourage a vibrant business environment and institutional reforms, building on the consensus emerging from a comprehensive dialogue on reconstruction so that the potential of the private sector can be unleashed. The reconstruction process will require huge resources.
The pace and rhythm of these resources will need to be adjusted — it is essential that the reconstruction strategy does not reproduce the old social contract but should be led by sustainable development led by the local private sector.
Private sector involvement is essential for a successful reconstruction program, as the government alone may not have the resources or capacity to rebuild the economy. Small and medium enterprises (SMEs) are crucial for employment generation and economic growth, contributing significantly to GDP worldwide.
International Labor Organization indicate that they, along with self-employed workers, account for the equivalent of an astonishing 70 percent of employment worldwide.
In all countries, small and medium enterprises not only provide employment opportunities, but are also engines of economic growth and social development. In most countries, these facilities contribute more than 50 percent to the gross domestic product, and some global estimates indicate that this number reaches 70 percent. This contribution varies across sectors, and is very high in the services sector, in which small and medium enterprises account for 60 percent or more of GDP in all countries.
Libya possesses several advantages for industrial development, including its strategic location, natural resources, and young workforce.
Challenges hindering industrial growth include a complex regulatory environment, financing difficulties, and infrastructure limitations.
Proposed Solutions
Here are some specific steps that the Libyan government can take to encourage private sector involvement in the reconstruction effort:
Create a business-friendly environment: The government can create a business-friendly environment by reducing bureaucracy, improving infrastructure, and protecting property rights.
Provide financial incentives: The government can provide financial incentives to businesses to invest in Libya. This could include tax breaks, subsidies, and loan guarantees.
Promote public-private partnerships: The government can promote public-private partnerships to finance and implement infrastructure projects.
Support SMEs: The government can support SMEs by providing access to finance, training, and technical assistance.
I am confident that the industrial sectors have the potential to play a major role in the reconstruction of Libya. By creating jobs, boosting the economy, transferring technology, and developing skills, the industrial sectors can help Libya to build a better future for its people.
