Al-Manea: “The Government of National Unity and Efforts toward Accountability and Transparency According to the World Bank Report Issued in December 2025”

In December 2025, the World Bank released its economic report on Libya as part of the Libya Economic Monitor series, titled “Setting the Path Towards Accountability and Transparency in Public Financial Management.”

The report provides a realistic assessment of the trajectory of public financial management in Libya, stressing that the progress achieved in the recent period was not merely a temporary improvement, but rather the result of executive decisions reflected in measurable financial and economic indicators—particularly during the tenure of the Government of National Unity.

Evolving Cooperation between Libya and the World Bank: From Assessment to Partnership

This report comes amid a notable evolution in the institutional relationship between Libya and the World Bank, culminating in the signing of a Memorandum of Understanding in Washington last April. The MoU aimed to strengthen technical coordination, unify efforts in public finance and governance, build capacity, and improve the business environment for foreign investors. This was preceded by a meeting between Prime Minister Abdulhamid Dbeibeh and the Vice President of the World Bank, followed by numerous meetings and cooperation on key files such as transparency. Most recently, the World Bank’s Executive Director, Mr. Ndai, and the Bank’s representative in Libya, Ms. Henriette, visited Tripoli a few days ago and met with most ministries of the Government of National Unity.

This development has shifted the relationship from one centered on assessment reports and general advice to a partnership closer to executive reality, with the World Bank becoming more closely coordinated with Libyan institutions and better aligned with government priorities—supporting the transformation of recommendations into actionable and monitorable workstreams.

A Tangible Shift in Public Financial Management

The report notes that Libya has begun— for the first time in years— to move from unrestrained spending toward more traceable and accountable financial management. This shift is reflected in:

• Improved disclosure of core financial data.
• Better control of the budget cycle and a reduced gap between allocations and execution.
• Enhanced ability of oversight bodies to access financial information in a timely manner, rather than after the fact.

According to the report, these measures have restored part of the state’s capacity to control the course of public funds.

Figures That Confirm the Progress Achieved

The report supports this assessment with a set of clear positive indicators, most notably:

• Real GDP growth of 13.3% in 2025, driven by economic recovery and improved management of public resources.
• Oil sector growth of 17.4%, compared to 6.8% growth in the non-oil sector—an important sign of gradual improvement outside oil.
• An increase in average oil production to about 1.3 million barrels per day in 2025, up from around 1.1 million bpd in 2024, directly boosting public revenues.
• A 33% increase in hydrocarbon revenues due to improved production and institutional compliance, despite unfavorable global price conditions.
• A budget surplus of approximately 3.6% of GDP during the first nine months of 2025, compared with a modest 0.7% surplus in the same period of the previous year.

As the report explains, these figures are not isolated from public financial management; they are directly linked to improved fiscal discipline and spending and revenue-collection procedures.

The Will of the Government of National Unity

While the report avoids political language, it links the achieved improvement to the presence of executive will within the government, which adopted a different approach by:

• Treating transparency as a tool of financial management rather than a formal obligation.
• Accepting engagement within an international accountability framework and technical cooperation with international partners.
• Beginning to improve non-oil revenue collection and reduce unjustified expenditures.

This approach enabled the achievement of a fiscal surplus and improved indicators despite ongoing challenges.

Inherited Challenges—Addressed Realistically

The report does not overlook existing economic challenges stemming from unresolved issues, most notably:

• Accumulated fiscal distortions resulting from years of division and off-framework spending.
• Incomplete unification of financial and accounting systems across institutions.
• The need to strengthen the operational independence of oversight bodies to ensure the sustainability of reform.

However, the fundamental difference— as highlighted by the report— is that these challenges are no longer a cause for paralysis, but have become part of a clear reform path.

Conclusion

The message of the World Bank’s December 2025 report is clear:
Public financial reform in Libya is no longer theoretical; it is a process that has begun to be reflected in the numbers.

What has been achieved during the period of the Government of National Unity does not mean that reform is complete, but it confirms that the state has regained part of its capacity to manage public funds responsibly, and that transparency and accountability have become prerequisites for economic stability—not political burdens.

The road remains long, but this time the discussion is supported by indicators, not slogans.

Advisor Mustafa Al-Manea is a Libyan lawyer and legal and economic expert with more than 24 years of experience. He has worked with several investment institutions, sovereign wealth funds, and banks in multiple countries in addition to Libya; serves as an expert for international research centers; previously worked as an advisor to the Central Bank of Libya; was a board member of the Libyan Investment Authority and the Libyan Foreign Bank; represented Libya at meetings of the World Bank and the International Monetary Fund; currently heads the executive team for the Prime Minister’s initiatives and strategic projects; has worked as an expert and lecturer with the American Bar Association; is a member of the Libyan-American Council for Trade and Investment; and has published numerous research papers and articles in Arab, American, and European newspapers, known for his bold views on economic and financial transformation issues.