The EU-OECD project on Promoting Public-Private Dialogue (PPD) in Libya (2020–2023) demonstrated how structured dialogue between public and private actors can underpin economic transition. By engaging over 200 institutions across four major cities—Tripoli, Benghazi, Misrata, and Sebha—the initiative helped reduce fragmentation, build trust, and identify priority reforms to foster diversification and private sector development. Inclusive dialogue was shown to be more than a consultation tool; it strengthened governance, accountability, and stakeholder ownership while aligning national recovery efforts with sector-specific strategies. The process highlighted the importance of modernised legislation, clear communication channels, and targeted incentives for private sector growth, underscoring PPD’s role as a practical instrument for sustainable economic development.
Libya’s economy faces persistent challenges, including limited diversification and a business environment dominated by the state. The PPD project facilitated sector-specific workshops and national-level discussions, enabling participants to outline practical solutions and shared priorities for advancing the economy. Five sectors were identified as having the greatest potential to drive diversification, job creation, and resilience: Banking and Financial Services, Agribusiness, Information and Communication Technology (ICT), Infrastructure and Construction, and Transport and Logistics.
The banking and financial services sector remains underdeveloped, relying heavily on public banks with minimal private participation. Key challenges include weak regulation, restricted access to credit for SMEs, and the absence of a national financial inclusion strategy. Participants emphasized modernizing banking infrastructure, implementing credit guarantees, enhancing supervisory capacity, promoting digital and mobile banking, and developing tailored financial products for entrepreneurs. Financial literacy initiatives were also identified as essential.
In agribusiness, Libya possesses significant potential due to its arable land and domestic food demand, yet the sector suffers from inadequate irrigation, fragmented value chains, outdated regulations, and limited private investment. Dialogue sessions highlighted the need to improve land tenure systems, increase access to agricultural finance, develop agro-processing and cold chain logistics, and promote contract farming, market access, and rural entrepreneurship, particularly for youth and women.
The ICT sector holds strong growth and employment potential but is constrained by weak digital infrastructure, monopolistic market structures, and outdated legislation. Participants advocated liberalizing the sector, improving connectivity in underserved areas, and introducing robust legal frameworks for data protection, cybersecurity, and e-governance. Strategic investments in digital skills and start-up support were seen as critical to fostering a competitive digital economy.
Infrastructure and construction remain key bottlenecks due to underinvestment, conflict-related damage, and inconsistent urban planning. The dialogue emphasized the need for a national infrastructure strategy, transparent project selection, mechanisms to attract private investment through public-private partnerships, streamlined procurement processes, and strengthened municipal capacities.
Transport and logistics, historically strategic for regional trade, have suffered from neglect, fragmented governance, and outdated facilities. Stakeholders recommended rehabilitating key transport corridors, modernizing customs and border procedures, developing logistics regulatory frameworks, and investing in ports, intermodal hubs, and digital transport solutions to restore Libya’s regional trade connectivity.
Overall, the project demonstrated that PPD is a powerful tool to drive economic diversification in Libya by aligning public and private sector priorities, addressing structural challenges, and implementing actionable reforms across sectors critical for jobs, competitiveness, and long-term resilience.
