At yesterday’s opening in Tripoli of the 3rd German Libyan Economic/Business Forum (29 to 30 April), Libya’s ambassador to Germany, Jamal Barig encouraged the continuation of the forum calling for the next one to be held in Berlin in the good weather month of July!
Review progress and include SMEs
He said successive forums must review progress achieved since the previous ones and try to understand the reasons for any lack of progress in any areas. The ambassador said SMEs should be included in projects implemented by German companies in Libya.
Focus on energy, including renewables
Barig said there should be a focus on the energy sector, noting that Libya was the largest Arab exporter of oil to Germany at Euro 4.9 billion in 2023. He said Germany and the EU’s policy to reduce gas imports from Russia offers Libya an opportunity to increase its exports of gas to them both.
Libya should also take advantage of Germany’s focus on green/renewable energies to develop its sector and increase its exports – while fulfilling its commitment to the reduction of emissions policy.
The ambassador called for the formation of a joint committee to study increased bilateral trade opportunities ahead of signing an MoU on further cooperation.
German ambassador Ohnmacht
In his remarks, Germany’s ambassador to Libya, Michael Ohnmacht said that while he sees oil and gas and energy continuing to play an important role in Libya, there is room for diversification into tourism to take advantage of Libya’s long Mediterranean coastline and the blue economy in general.
Doing business in Libya has become quite normal – but room for improvement
He said doing business in Libya has become quite normal, but there are challenges still that can be overcome.
Libya offers German companies opportunities
Ohnmacht added that Libya offers German companies opportunities as German companies have an excellent reputation in Libya. German companies have participated in constructing Libya’s infrastructure (Electricity: Siemens. Motorway: Bilfinger), he reminded.
Visas
The ambassador then tackled the awkward subject of why Germany is not – like Italy, Malta, Greece, Spain, etc – issuing visas from Tripoli. He said the German embassy in Tripoli had now reopened in Tripoli for three years and was trying to resume visa issuance from Tripoli, rather than Tunis
Ghorfa president, member of German parliament and former minister: Peter Ramsauer
The Arab-German Chamber of Commerce and Industry (Ghorfa) president, member of German parliament and former minister, Peter Ramsauer, said in his speech that Libyan German trade has increased by 20 percent to Euro 5.3 billion in 2023.
There can be strategic bilateral potential
He said the two countries must take advantage of their geographic proximity and that there can be a strategic potential between the two countries.
Hydrocarbons present significant opportunities
The Ghorfa president said hydrocarbons present significant opportunities because of Libya’s reserves as Libya plays a key role in global markets.
Business as usual not an option
But, he added, business as usual is not an option. There is a need for political reform and a budget to lay the foundations for sustainable growth. Reforms, innovation and a business-friendly environment are needed.
Acting Libyan Foreign Minister Baour
Finally, Acting Tripoli based Libyan Foreign, Taher Baour, said renewables are the future and Libya needs this knowhow. He said Germany and its companies have this knowhow. This knowhow needs investment and Libya does not have enough funds for finance these new projects. Hence, it needs foreign investment.
He said the government will provide the legal framework for investment and hoped the next forum would focus on renewables.
Libyan consumers have high confidence in German products
He said Libyan consumers have high confidence in German products, joking that he personally liked Mercedes cars! But he said there is a reversal in the presence of German products in some sectors.
Visas!
The Acting Foreign Minister then tackled the sensitive subject of visas. He said visas are key to continued and increased cooperation, hoping that visas will start to be issued by the German embassy from Tripoli rather than Tunis. German investors should take more risk to achieve results, he added.
Lifting the EU flight ban
Baour then tackled the other sensitive subject of the EU flight ban. He said the flight ban needs to be lifted to allow for increased travel, connections, and trade between the two countries. He called on Ramsauer in his role as a German MP to help lift this ban.
The Acting Foreign Minister said Libya is implementing all the International Civil Aviation Organisation’s (ICAO) requirements, lamenting that time is money for business and that it takes a day to get to Berlin from Tripoli.
He also pointed out that since international flights resumed from Libya, there has been no recorded security incursion.
Baour announced that a new cargo sealine had been opened on Sunday from Genoa to Tripoli which should help facilitate German goods to Libya. He said conditions for increased cooperation are here.
Oil
He said Libya needs 2-3 years to increase oil production to 2 million barrels of oil due to the neglect of the sector for about 10 years. He said you cannot push a button and increase production overnight.
The Berlin 1 & 2 Process
The Acting Foreign Minister gave credit to Germany for Libya’s current stability, citing the Berlin 1 and 2 processes. He said they laid the foundation for today’s Libyan stability. He said Germany always supported Libya beyond its narrow national interest.
