On Saturday, the Italy-Libya Joint Committee announced a significant development in bilateral relations. Italy has committed to a $5 billion dollar investment for projects outlined in the 2008 Friendship Treaty. This year, 2024, will see a specific allocation of €571 million euros dedicated to completing contractual procedures for two key sectors: the first sector “Emsaed – Al Marj” and the fourth sector “Misrata – Ras Ajdir” of the Coastal Road project.
The Friendship Treaty marked a significant moment in Italy-Libya relations. It was aimed at resolving historical grievances, and paving the way for future cooperation. This recent financial commitment by Italy is a continuation of the efforts to strengthen the ties between the two nations.
The sectors targeted for this investment are crucial for Libya’s infrastructure development. The Emsaed – Al Marj sector represents a key area in the east of Libya, while the Misrata – Ras Ajdir sector is vital for the western part of the country. These areas are strategically important for the improvement of transportation and trade routes, both domestically and internationally.
The investment comes at a critical time for Libya, which has been striving to rebuild its economy and infrastructure following years of conflict and instability. Italy’s commitment reflects not only a strong diplomatic relationship, but also a recognition of the importance of a stable and prosperous Libya for regional security and economic development.
This announcement is also a testament to the ongoing international efforts to support Libya, in its path to recovery. The investment in infrastructure is expected to have a significant impact on the Libyan economy, enhancing trade, creating jobs, and improving the quality of life for its citizens.
Notably, Italy has reinforced its standing as Libya’s primary commercial ally in the first six months of 2023, with trade between the two nations reaching a substantial $4.7 billion Dollars.
Italian exports to Libya accounted for nearly $915 million, while Libyan imports, predominantly hydrocarbons, amounted to $3.79 billion, as per the latest reports from the Central Bank of Libya (CBL).
This economic exchange reflects a broader trend, despite a slight downturn in Libya’s exports. The Central Bank’s data showed an 11.7% drop in Libya’s exports, dwindling to $17.3 billion from last year’s $19.6 billion, over the same period.