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Source: www.africaecon.org

Africa Economic Institute

Libya's Investments in North Africa


In December 2008 a series of conferences were held by the Ministerial council for joint investments in the Libyan capital of Tripoli, to discuss future prospects for joint investments between Libya and Egypt, where Libya aims at boosting its investments in Egypt to around $10 billion during 2009.

In December 2008 a series of conferences were held by the Ministerial council for joint investments in the Libyan capital of Tripoli, to discuss future prospects for joint investments between Libya and Egypt, where Libya aims at boosting its investments in Egypt to around $10 billion during 2009.

Ahmed Qazzaf, the head of the Egyptian-Libyan relations lobby, announced that the amount of Libyan investments in Egypt has increased by 32% in the past couple of years. On one hand, the number of operating Libyan companies in Egypt has reached up to 236 companies, operating in all different sectors of the economy. On the other hand, 9 Egyptian investment companies are currently operating in Libya.

Trade between the two countries is expected to reach around $2 billion in 2009. Amongst proposed projects is the construction of a gas pipeline that connects Egyptian natural gas to European markets. Also, another project is the creation of free trade and industrial zones between Libya and Egypt. Moreover, additional Egyptian companies are expected to enter the Libyan economy in 2009 to invest in the housing and infrastructure development sectors of the economy.  

A joint oil refinery will be set up in West Alexandria in Egypt with Libyan financing. It will be used in refining Libyan oil, he added. They also agreed to enter joint food security ventures in Africa, mainly Sudan, Uganda and others where water is available for growing such cereals as wheat, barely and rice, the Libyan premier noted.

Furthermore, Libya’s National Oil Corporation (NOC) recently announced the operation of its branch in Morocco, “Libya Morocco”, where the company will distribute oil and gas in the Moroccan economy.

The newly established company is founded on the principles of the American Exxon Mobil in Morocco. The company has 185 gas distribution stations, making the amount of the company’s investment in Morocco rise to $5 billion. Libya’s National Oil Company (NOC), currently owns 10% of Morocco’s energy market. Also the company owns 30% of Morocco’s maritime Petrocab company.

Ali Shamikh, the president of the company, announced that the decision to invest in Morocco is one step forward to recognizing the attractiveness of African economies for foreign investments. Thus, his statement backs up the whole strategic view of better yielding investments in the African continent than other places in the world.

Shamik added that his company owns 183 gas stations in Morocco, where 6 of them are located in sea ports. The company also manages 10 gas stations in airports and owns a synthetic oil manufacturing factory.

Thus, the company prides itself in operating in Morocco, where it intends to add  10 distribution channels each year.   

Libyan investments in Africa have been constantly on the rise over the past few years. Currently Libya’s National Oil Company (NOC) is involved in 23 different African economies through a network of 1250 distribution stations, 7 synthetic oil manufacturing factories, and an additional asphalt factory.

Source: www.AfricaEcon.org
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Source: www.africaecon.org