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Author: Amira Cherni

Exclusive: Shipment of 100 Million Dinars in Cash Arrives in Benghazi, Distribution Details Announced

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The Central Bank of Libya exclusively revealed to our source the arrival of a cash shipment worth 100 million dinars to Benghazi. Of this amount, 60 million dinars have been allocated to support branches of Wahda Bank, while 40 million dinars are designated to bolster the vaults of North Africa Bank branches in the eastern region.

This distribution is in line with the Central Bank’s plan and the directives of the Governor and Deputy Governor of the Central Bank of Libya.

British Site: After years of negotiations, the UN is expected to unfreeze $70 billion of Libyan assets abroad

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The British website Geopolitical Monitor reported that the Libyan Investment Authority expects the United Nations to unfreeze its $70 billion assets by the end of the year. After a series of institutional reforms and years of negotiations with the UN Security Council, the unfreezing of assets would enable the fund to make new investments and transfer capital from accounts with low interest rates.

According to the website, an audit conducted by Deloitte in 2020 revealed that the Libyan Investment Authority suffered a potential loss of $4.1 billion in returns on its equity portfolio since the freeze began in 2011. Since 2019, the Libyan Investment Authority has sought to implement a major transformation program that would allow the fund to compete with similar sovereign wealth funds in the Middle East. This program includes capacity building, increased transparency, and working with the UN to lift the asset freeze through a four-step transformation plan.

The website also mentioned that the UN Security Council passed Resolution 2701 in October 2023, agreeing to consider changes to the asset freeze. The investment plan presented in March 2024 outlined short-term strategies and reallocations that the Libyan Investment Authority plans to pursue once the freeze is lifted, including recovering losses.

The ongoing challenges faced by the Libyan Investment Authority have been complicated by the significant decline in the value of its holdings. An audit conducted in 2012 revealed that about 40% of the 550 companies affiliated with the institution were unprofitable and needed to be sold. Twelve years later, many companies are likely still unprofitable, increasing the need for a comprehensive restructuring of the institution’s assets. Furthermore, the inability to uniformly enforce the asset freeze has allowed new deals to be made since 2011, many of which were not reported in audits and surveys of the Libyan Investment Authority’s assets, hindering regulatory efforts to estimate its full portfolio.

The transformation plan of the Libyan Investment Fund was launched in 2019. Since then, the CEO and executive team have ensured that the Libyan Investment Fund provides annual reports to the International Forum of Sovereign Wealth Funds, a leading forum for transparency and governance in sovereign wealth funds, in line with the Santiago Principles.

These efforts have greatly improved the transparency of the Libyan Investment Fund, with GlobalSWF ranking the Libyan fund 51st among 100 sovereign wealth funds in terms of sustainability and governance for 2024, compared to 98th in 2020.

The website emphasized that this institutional transformation has strengthened the Libyan Investment Authority’s position within the UN Security Council to request the lifting of the asset freeze. While the investment proposal submitted to the UN in March 2024 only outlines a short-term plan, the Libyan Investment Authority maintains a long-term strategy that will be implemented once access to the frozen assets is granted.

The website also noted that while the document submitted to the Security Council remains confidential, the Libyan Investment Authority’s 2021-2023 strategic document highlights its future aspirations. The first step in its strategy addresses three problematic areas: building trust, capacity building, and developing better investments. While the first two areas have largely been addressed since 2020 through internal reforms, the third remains incomplete, partly due to the asset freeze.

The Libyan Investment Authority estimates that other sovereign wealth funds in the same group, especially in the Middle East, achieve annual returns of 6-7%, and the Authority aims to reach this benchmark after the freeze is lifted. Their plan includes reallocating underperforming assets, bringing in external managers, creating a smart compliance system to maintain a level of international oversight, and unifying asset and portfolio classification across all subsidiaries. An internal investment committee will also be established.

According to the website, the initial reallocation process will mainly derive from cash-strapped assets affected by the freeze and other sanctions. According to the Libyan Investment Authority’s documents, all other assets are likely to remain frozen.

British Newspaper: Aframax Tankers Reach Highest Levels After Return of Libyan Barrels

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The London-based British newspaper TradeWinds reported today, Tuesday, that the utilization rate of Aframax tankers has reached its highest level in four months following the return of Libyan barrels to the market and the lifting of the force majeure.

The newspaper confirmed that production rose to 1.3 million barrels per day on Sunday, according to the National Oil Corporation, which highlighted record levels of production from the Sharara field.

The BRS Group also stated that crude oil shipments are on track to return to full normalcy, according to the newspaper.

Ben Gdara Struggles to Reconcile Haftar and Dbeibeh Amid Resignation Rumors, Lacking Clear Evidence – Nova Agency Reports

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The Italian news agency Nova reported today, Thursday, that in the past few hours, rumors have spread within the Libyan oil sector regarding the possible resignation of the Chairman of the National Oil Corporation, Farhat Ben Gdara.

Nova indicated that rumors, especially on social media, suggest that Ben Gdara has submitted a resignation letter to the Prime Minister of the Government of National Unity, Abdul Hamid Dbeibeh, although there is no official confirmation from relevant authorities at the moment.

Nova reached out to Ahmed Jumaa, spokesperson for the Ministry of Oil and Gas, who stated that he is unaware of any resignation letter submitted by Ben Gdara.

Other sources close to the matter said the resignation was actually due to health issues Ben Gdara has been suffering from for a while. However, other sources suggest that Ben Gdara is facing difficulties in balancing the demands of the armed forces’ leader, Haftar, with the directives of Prime Minister Dbeibeh, making his position increasingly unsustainable, while the regional support he once enjoyed seems to have weakened.

The name of Mohamed Ben Shatwan, the current head of the Arabian Gulf Oil Company and a figure close to Saddam Haftar, one of the most influential sons of “the Marshal,” is being circulated as a potential temporary replacement for Ben Gdara, who frequently travels abroad for medical treatment. However, these may just be rumors, as Nova noted without finding any confirmation.

Africa Intelligence: French Court Rules in Favor of Libya in the “Siba Plast” Case

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The French intelligence site Africa Intelligence reported today, Monday, that a French court has ruled in favor of Libya in the case involving the Siba Plast company.

The site confirmed that the Paris Court of Appeal ordered the cancellation of an enforcement order issued by another French court in 2017 in favor of the Tunisian company, according to the French site.

Unanimously Chosen: Who Is Naji Issa, the New Governor of the Central Bank of Libya?

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In a significant decision, Naji Issa has been unanimously appointed as the new governor of the Central Bank of Libya. This video delves into Issa’s background, highlighting his career and the expertise that led to his selection for one of Libya’s most critical financial roles. Watch to learn about the man tasked with steering the country’s economy through a pivotal time of transition and reform.

El-Manea Writes: “Despite Challenges, Libya Will Be a Destination for Investors and Foreign Capital”

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Advisor Mustafa El-Manea wrote an article published on the American platform Binzenga, stating: Libya will remain a destination for investors and foreign capital.

While national and foreign parties are preoccupied with fueling conflict and exacerbating living conditions in Libya, and despite the overwhelming challenges the country faces, which have led to widespread frustration among Libyans, foreign investors and global economic and development experts remain optimistic. They continue to view Libya as one of the most promising countries for investment opportunities due to its strategic location, abundant natural resources, and open market.

Many of my colleagues and friends in foreign investment funds, international banks, and global development institutions consistently highlight Libya’s untapped market and the highly attractive investment opportunities waiting to be unlocked. For instance:

  • Jean-François Dauphin, Head of the Middle East and North Africa Division at the IMF
  • Rick Perry, former CEO of HSBC North Africa
  • Claudio Descalzi, CEO of Eni
  • Michael Stein, Chief Economist at JPMorgan Chase
  • Alexander Novikov, Head of International Investments at VTB Bank
  • Tom Swan, Investment Director at Citibank
  • Jonathan Walker from Energy Insights
  • Philippe Andrews, Director of Development Finance at the EBRD
  • Andrew King, of Wood Mackenzie
  • Angel Gurría, former Secretary-General of the OECD
  • Maxwell Cook, Investment Expert at BlackRock
  • Mark Bevan, COO of ExxonMobil
  • Matteo Calise, Chief Economist at the AfDB
  • Gerald Meyers, Investment Advisor at Total Energies

…and many others, whose collective insights paint Libya as a gateway to Africa and Europe, offering unique logistical opportunities for trade between continents. With the largest proven oil reserves in Africa (ranking 9th globally with 48 billion barrels), Libya has a strong foundation for attracting foreign investment in energy, renewable resources, and infrastructure reconstruction, which alone is estimated by the World Bank to require over $200 billion.

Despite its challenges, Libya’s economy has shown signs of gradual stabilization, with IMF reports in 2023 and 2024 forecasting GDP growth at around 10%. Investment in Libya’s oil sector alone could exceed $20 billion to increase production to 2 million barrels daily.

Libya remains a promising hub for foreign capital, but unlocking its potential requires bold, methodical strategies and significant reforms, such as:

  1. Providing Investment Guarantees: Leveraging Libya’s international assets (worth over $170 billion) to assure foreign investors, and collaborating with international investment guarantee agencies like MIGA and the African Trade Insurance Agency.
  2. Streamlining Bureaucracy: Reducing inefficiencies in project oversight, which annually waste an estimated $30 billion without adding value.
  3. Fostering Public-Private Partnerships: Encouraging collaboration between Libyan and foreign capital to share investment risks.
  4. Developing an Investment Roadmap: Establishing a clear and prioritized investment strategy with detailed opportunities, legal frameworks, and incentives.

With a forward-thinking vision and collective effort, Libya can attract foreign capital, drive economic diversification, and break free from outdated administrative models, paving the way for comprehensive and sustainable growth.

Read the full article on Benzinga.

Al-Dharat Warns of the Devastating Impact of the Financial Crisis on Living Costs in Libya

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Mohamed Al-Dharat, the head of the Libyan Foreign Bank, warned of the devastating impact of the financial crisis on living costs in Libya.

Al-Dharat stated on the sidelines of a roundtable on energy and infrastructure between Libya and Italy, organized by Energy Capital & Power in Rome, that consumer goods prices have risen significantly, with increases of up to 300% for some products.

This increase points to the substantial rise in costs in the parallel market, where the Libyan currency has lost much of its value.

Al-Dharat emphasized the severe impact of the crisis on business activities in the country.

He explained that traders and economic actors are facing difficulties; they are either unable to conduct business or unable to operate efficiently. The uncertainty regarding the management of the Central Bank of Libya and the lack of trust in financial transactions have paralyzed the economic system.

He confirmed that every day that passes without a solution exacerbates the situation, making it increasingly difficult to resolve the problem.

Al-Dharat noted that the prolonged financial crisis is pushing the country toward economic collapse and warned that each day of this crisis is equivalent to months of efforts to resolve the issues and clean up the resulting chaos.

He concluded by stating, “Something must change as soon as possible, or the situation will become unsustainable,” expressing hope for a solution before the situation deteriorates further.

Nova Agency: Restoring Libya’s Oil Production to Pre-2011 Levels is Essential

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The Italian Nova agency reported today, Tuesday, that Eni plans to significantly increase gas production in Libya starting from the end of 2026.

Martina Opizzi, Eni’s North Africa and Middle East Area Manager, stated during a roundtable on energy and infrastructure between Libya and Italy, organized yesterday in Rome by Energy Capital & Power, that gas production is expected to start by the end of 2026 and will reach 750 million cubic feet per day at full operation. This increase will be necessary not only to meet local needs in Libya but also to support exports to Europe.

Opizzi announced that by 2025, the “Sabratha Compression” project will be launched, which is a new initiative aimed at further increasing production, providing the country with nearly 100 million cubic feet of gas per day. These projects also include a crucial sustainability element, as Eni is committed to reducing its carbon footprint through gas storage initiatives.

Opizzi emphasized the importance of creating a competitive environment for service contracts in Libya.

She stated that it is essential to achieve stability, increase production, and restore it to pre-2011 levels, referring to Eni’s efforts to ensure sustainable growth in energy production even during the most challenging times for Libya.

Opizzi pointed out that exploration activities have begun in the Ghadames Basin and that they have never stopped considering Libya a critical area for oil and gas production.

She continued by saying that they believe there are still resources to be discovered and that they also plan to conduct offshore exploration in the near future, in addition to the fact that Libya is a strategic country in the energy market due to its vast natural resources.

Oil Review: Libya Prepares for Oil and Gas Licensing Round Early Next Year – Details Inside

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Oil Review reported on Monday that Libya is set to open a licensing round for oil and gas in early 2025, targeting concessions in the Murzuq, Ghadames, and Sirte basins.

The site noted that this initiative comes as the region is already attracting investor interest, with over 30 companies expressing intentions to produce 2 million barrels of oil and 4 billion cubic feet of natural gas daily within the next three to five years.

According to the site, the National Oil Corporation has intensified maintenance efforts to boost production from at least 36 wells and has initiated a $17 to $18 billion project to identify 45 new projects to meet production goals. Additionally, Sirte Oil Company has announced a recent gas discovery.

The site further reported that a consortium including Eni, TotalEnergies, and the Abu Dhabi National Oil Company is developing and exploring oil and gas fields in the NC-7 block in the Ghadames basin, targeting 2.7 trillion cubic feet of gas to enhance local production.

In May of this year, $1.23 billion was allocated for the development of the NC-7 block, managed by a consortium led by the Italian multinational energy company Eni, aiming to generate revenue from 2.7 trillion cubic feet of gas in the Ghadames basin.

US Ambassador: Libya Needs Swift Actions to Restore Trust in the Central Bank

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The US Ambassador to Libya, Richard Norland, stated in an interview with Egyptian television on Sunday that the recent action taken by the Libyan Presidential Council is a unilateral move and a risky step that has raised questions regarding the Central Bank of Libya following the dismissal of its governor, Seddiq Al-Kabeer.

Norland noted that concerns have been raised about the Central Bank and the recent intelligence raids that resulted in the seizure of documents and files, which have heightened fears regarding the fight against money laundering and terrorist financing.

According to Norland, the United States believes that Libya urgently needs swift actions to restore confidence in the Central Bank, allowing for normal financial transactions to resume. He expressed concern that efforts to resolve the Central Bank crisis could lead to a vicious cycle.

He added that Libya needs a unified decision regarding a credible leadership for the Central Bank that enjoys consensus among all parties.

Bloomberg: Libyan Oil Exports Double Despite Imposed Restrictions

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Bloomberg reported today that Libya’s oil exports increased last week, even though authorities in the east of the country have not lifted restrictions on flows.

According to Bloomberg, the average shipments of Libyan crude oil and condensates reached 719,000 barrels per day between September 13 and September 19, based on tanker tracking data, up from 314,000 barrels per day in the previous seven days.

The report noted that oil shipments continue to flow from Libya despite the export restrictions amid the ongoing political crisis, which has led to a decline in the country’s production.

However, the average shipments remain below the one million barrels per day that were being exported before the onset of the crisis, according to the agency.

Financial Transparency Report for 2024 Reveals Key Issues: Military and Intelligence Budgets Lack Parliamentary Oversight

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The Financial Transparency Report for 2024 highlights that ongoing internal political divisions continue to hinder the government’s ability to implement regular budgeting processes, negatively impacting financial transparency and government operations. During the reporting period, the Government of National Unity did not publish a proposed executive budget.

According to the report, the Government allocated funds without parliamentary approval, which was granted later, leaving unclear how these funds would be utilized. Additionally, the year-end budget execution report issued by the Government of National Unity was not published.

The report noted that limited information was available to the public regarding debt obligations, including debts of major state-owned enterprises, and there was no public reporting on the financial allocations and revenues from state-owned companies.

It emphasized that military and intelligence budgets did not undergo parliamentary or public oversight and that the Supreme Audit Institution did not meet international standards for independence, remaining politically divided.

The Supreme Audit Institution published an annual report that included results, recommendations, and substantial narratives.

It appears that the government outlined regulations in law, seemingly following established standards and procedures for awarding contracts and licenses for resource extraction. However, these values were generally not granted through competitive and open bidding processes, and information related to natural resource extraction was not publicly accessible. Furthermore, the Libyan Investment Authority lacked a sound legal framework, failing to issue public financial statements or reports on its investment strategy, according to the report.

Exclusive: Al-Zantouti: “Oil-for-Food Cannot Be Implemented Due to Name Conflicts Over the Central Bank”

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Financial expert Khaled Al-Zantouti stated in an interview with Sada Economic Newspaper regarding the possibility of the Libyan economy reaching an oil-for-food scenario if Al-Kabeer does not return: “Based on experience, I do not want to mention specific names, but generally, I do not believe it is easy to put Libya under the oil-for-food principle in exchange for a UN decision. Under the current global conditions, the world does not care about individuals and names but rather about its own interests, particularly the interests of the permanent member states. These countries do not care if Libyan funds are stolen or if Libyans suffer or live. Conflicts, wars, divisions, liquidity issues, long queues, questionable credits, unregulated spending, and currency devaluation have been visible to the world for years. The world has never acted to protect those funds or alleviate Libyan suffering. What matters to the world is that oil is sold, based on the interests of its companies only, and it does not matter even if oil stops completely, as the amount of Libyan oil produced is limited and has no significant impact on the global market, with its share not exceeding 1%, which can be compensated by other countries.”

He also said: “Frankly, I wished such a step had been taken a long time ago, at least to prevent this bloody, selfish conflict that we have suffered from over the past years, which revolves around money and power. However, now it is not easy at all to make such a decision under the current global circumstances. Even the previous decision to freeze foreign assets was made at the request of Libyan agencies and under global conditions different from the current situation. We are now suffering from the erosion of those frozen assets and our substantial losses day by day, with no permission even to manage them through banks, which we have requested for years.”

Al-Zantouti continued: “Finally, I say that the decision to implement oil-for-food cannot be made due to conflicts over the Central Bank and under the current global conditions. The only exception might be a complete agreement among legislative authorities to ask the UN to take such a step, which I believe is impossible.”

He added: “It is more appropriate for Libyans to agree on the necessity and importance of the Central Bank’s independence and to manage it with a specialized and completely independent board of directors, free from any ideological, regional, or personal interests, to perform its true functions in shaping and implementing monetary policies in full harmony with other financial and commercial policies and in accordance with international standards. This is what I hope for.”

He concluded: “The Central Bank remains the treasury of Muslims in Libya, and we must adhere to the commands of the Almighty in preserving and investing it for the benefit of this suffering people.”

Radio France: American and British Banks Are Not “Stupid” and Know That the Interim Governor Was Appointed Through Coup and Violence

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Radio France reported today, Wednesday, that American, British, and European banks remain hesitant to deal with the Central Bank of Libya. These banks are not “stupid”; they are well aware that the interim governor was appointed unilaterally through a coup and violence.

Jalel Al-Harchaoui, a researcher at the Royal United Services Institute in London specializing in Libyan affairs, stated that what Dbeibeh presents as the interim governor of the Central Bank is not truly the case. The interim governor has control over the Libyan dinar systems but lacks access to the more critical assets, namely dollars, which belong to the Libyan people.

He continued: “Instruments like letters of credit, such as Libyan reserves abroad, are financial tools that this new governor cannot use. There are concerns about a very short-term shortage, and no one can predict how Libya will import essential goods in October.”

Paris-based international law attorney Majed Boudin stated that imports into Libya are completely banned, leading to a market shortage unless the international community acts quickly to resolve the issue.

He emphasized the importance of reorganizing resources from oil fields, which pass through the National Oil Corporation and are then deposited into the Central Bank to fund the economy and pay salaries.

According to Boudin, this destabilization benefits certain countries, such as Russia, which is a major beneficiary of smuggled Libyan oil, as well as China and Iran, which present themselves as alternatives in the parallel market in case of shortages.

The attorney added: “Consumer products will be replaced through these unexpected gains from oil smuggling with other products. For example, we could replace suppliers of this or that product from Europe with Russian, Chinese, or even Turkish suppliers. This is a geopolitical issue that needs to be resolved, especially since oil production, Libya’s primary source of income, is halted.”