Exclusive: In his Interview with Sada, Abu Sriwil Discusses the Challenges and Prospects of Exporting for Libyan Factories

International trade expert Dr. Yassin Abu Sriwil spoke to our source about the challenges and prospects of exporting for Libyan factories, stating: “Given the current economic conditions in Libya, the export sector faces significant challenges, including exchange rate differences, banking restrictions, and complex administrative procedures. At the same time, Libyan factories have enormous production capacities and a strategic position among the largest factories in Africa, making the development and expansion of export activity a pressing necessity to ensure sustainable production and open new avenues for economic growth.”

Regarding the impact of increasing challenges related to exchange rate differences and bureaucratic procedures on the competitiveness of Libyan exporters, particularly given that Libyan factories are among the largest in Africa, Abu Sriwil said: “The main issue lies in the gap between the official exchange rate used to evaluate export revenues (about 4.93 dinars to the dollar) and the rate exporters must purchase at (which reaches nearly 5.70 dinars or more, and even surpasses 6.5 dinars in the parallel market).”

He added, “This difference directly affects profit margins and significantly raises the total cost of exportation. While Libyan factories have huge production capacities and strategic importance in Africa, these policies prevent the full utilization of these capabilities and place Libyan products at a competitive disadvantage compared to international markets.”

Regarding the reasons that make export a strategic necessity for Libyan factories under these circumstances, he said:
There are several strategic reasons driving Libyan factories toward export:

• Massive Production Capacity: Libyan factories have advanced infrastructure and large production capacities that enable them to meet the needs of local, regional, and international markets.
• Strategic Geographic Location: Libya is positioned to be a connecting link between European, African, and Middle Eastern markets, providing great opportunities to open new markets.
• Diversifying Income Sources: Exporting offers an opportunity to diversify income sources and earn foreign currencies, which is vital for supporting the national economy and investing in local industrial development.
• Raising Quality Standards and Competitiveness: Competing in international markets pushes factories to improve production and quality standards, enhancing their ability to compete globally.
• Promoting Sustainable Development: Expanding export activity helps create new job opportunities, stimulate innovation, and develop related sectors like logistics and commercial exports, leading to a positive impact on the national economy as a whole.

When asked about the effect of banking policies and administrative restrictions on achieving these goals, given these significant capabilities, “Abu Srewil” continued: “Current policies represent a major obstacle. For instance, the Central Bank requires exporters to convert export revenues back into the country at the official exchange rate, which deprives them of managing their liquidity locally and investing in expanding their operations.”

He further explained: “Additionally, the complexity of customs and tax procedures increases both the time and financial costs of the export process, which discourages many manufacturers from expanding in this field despite their immense capabilities.”

During the discussion, Abu Sriwil suggested several solutions to improve the export environment and ensure sustainable production and success for Libyan factories in international markets, saying:
There are several necessary steps that should be taken at both the government and institutional levels:

• Reevaluate the Export Revenue Exchange Rate: The revenue evaluation should be reconsidered to reflect the market rate, or compensatory incentives should be offered to exporters to reduce the gap between rates.
• Freeing Money Management: Allowing exporters to manage export revenues locally without needing to convert them abroad would enhance liquidity and encourage local investment.
• Simplify Customs and Administrative Procedures: Reducing bureaucratic hurdles and providing customs and tax facilitation would lower the time and financial costs of exportation, making the external market more attractive.
• Strengthening the Export Development Center: Expanding the center’s powers and role in coordinating efforts.
• Coordinating Relevant Authorities: It is essential to hold emergency meetings between the Central Bank of Libya and the Export Development Center to coordinate policies and ensure they align with exporters’ needs.
• Opening New Markets: Encouraging promotional and international marketing initiatives for Libyan factories and exploiting Libya’s unique geographic location to open new markets and increase the country’s export share.
• Enhancing Quality and Innovation: Investing in improving quality standards and innovation within factories will increase their global competitiveness and make Libyan products more accepted in international markets.

Regarding his vision for the future of exports in Libya if these solutions are effectively applied, he said: “If significant and rapid reforms are implemented, Libya’s export future holds promising prospects. Libyan factories will be able to fully exploit their production capabilities, contributing to diversifying the national economy, increasing foreign revenues, and improving competitiveness in international markets. Supporting exports is not just a financial or procedural issue but a strategic investment in Libya’s economic future. Activating this sector will represent a quantum leap toward sustainable and comprehensive development.”

Finally, Abu Sriwil commented on the efforts of relevant authorities to implement these reforms, which represent the hope of turning challenges into real opportunities, saying: “Certainly, political will and constructive dialogues between the concerned parties are key to liberating the Libyan economy and activating the private sector’s role as a major economic force in Libya.”