Monday, June 23, 2025
LibyaReview
  • Home
  • Libya
  • Economy
  • Sport
  • Politics
  • Entertainment
  • Opinion
No Result
View All Result
  • Home
  • Libya
  • Economy
  • Sport
  • Politics
  • Entertainment
  • Opinion
No Result
View All Result
LibyaReview
No Result
View All Result
Home Libya

UN Warns of Libya’s Dependence on Oil

July 30, 2022
Share on FacebookShare on Twitter

On Saturday, the United Nations Conference on Trade and Development (UNCTAD) urged Libya to stop its near total dependence (99%) on oil and gas exports, and to work to diversify its commodity exports in the future.

In a report, entitled “Economic Development in Africa 2022” UNCTAD said that there are nine African countries that do not depend on raw materials as their exports, not including Libya.

It pointed out that these countries are: South Africa, Egypt, Tunisia, Morocco, Comoros, Djibouti, Lesotho, Mauritius, and Eswatini (formerly Swaziland).

The report stated that any country that depends on raw materials for more than 60% of its total exports, is vulnerable to being affected by international crises and the fluctuations of food markets globally.

The UN organisation called on Libyan and other African countries to pursue a policy of diversifying sources of income, and consequently exports. This is in order to be able to withstand global economic crises, such as the repercussions of the COVID-19 pandemic and the war in Ukraine.

According to the report, Libya is among several countries that depend almost entirely on oil and gas exports, with 98.7%. The list also included five African economies that also mainly depend on raw materials exports: Guinea-Bissau (99.8%), South Sudan (99%), Chad (98.4%), Mauritania (97.3%), and Sudan (97%), according to the UNCTAD report.

It added that Libya was also among the five countries with the highest export concentration, measured by the Theil index, including Mali, Chad, Angola, and Guinea-Bissau. Of these five countries, only Angola has experienced a slight improvement over the last 20 years.

The report also shows that the dependence of the Libyan economy on raw materials represents a source of macroeconomic instability, especially in periods characterised by high fluctuations in commodity prices and global shocks. However, it sees “enormous potential to break dependence on raw materials.”

Higher levels of economic productivity through diversification, technological upgrading, and innovation, including through a focus on high-value added and labour-intensive sectors were recommended.

It noted that the remedy for dealing with commodity dependence is export diversification. The central motif of this policy lies in the improvement of the country’s resilience against the kind of external shocks that affect commodities prices. Diversified countries are less volatile in times of crisis. In addition, natural resources are finite, and the Governments of commodity exporters need to prepare their economies for future resource depletion.

Tags: libyaLibyan OilOil ProductionunUnited Nations
Next Post

UN: Williams to Leave Her Post in Libya by End of July

POPULAR CATEGORIES

  • Home
  • Libya
  • Economy
  • Sport
  • Politics
  • Entertainment
  • Opinion

MUST READ

Berlin Conference Reaffirms Support for Libyan-Led Political Process

Libya’s Interior Ministry Reports Armed Attack on Security Forces in Tripoli

Libya & Italy Sign Military Cooperation Plan

Libyan PM & Belgasem Haftar Inaugurate Derna Park

Libya’s Haftar & British Envoy Discuss Political Developments

Libya & Greece to Discuss Maritime Dispute in July

EDITOR PICKS

128,000 Students Begin Final High School Exams Across Libya

Libya Launches New Electoral Education Initiative

Libya’s Haftar & British Envoy Discuss Political Developments

Libya’s Kufra Hosts 160,000 Sudanese Refugees

UN Reviews Development & Refugee Support Programs in Libya

Libya & Greece to Discuss Maritime Dispute in July

  • Home
  • Libya
  • Economy
  • Sport
  • Politics
  • Entertainment
  • Opinion

© 2024 LR

No Result
View All Result
  • Home
  • Libya
  • Economy
  • Sport
  • Politics
  • Entertainment
  • Opinion

© 2024 LR