Libya has been ranked among the top three most business-friendly countries in Africa for 2025, according to an economic report published by The Guardian Nigeria citing the Statysense Index.
The report highlighted that Libya’s rise in the index is attributed to its vast oil reserves, ongoing economic reforms, and a comparatively more stable political environment than in previous years.
Libya’s gross domestic product (GDP) is projected to grow by 6.2% in 2025, largely driven by increased oil production and an improved investment climate. This growth significantly outpaces the African average, which is expected to stand at 3.5%.
The report also noted that Africa is expected to attract more than $50 billion in foreign direct investment (FDI) in 2025. Libya, with its reform agenda and expanding middle class, is seen as a particularly attractive destination for international capital.
Following Libya in the top rankings were Côte d’Ivoire, the Democratic Republic of Congo, Tanzania, Egypt, Kenya, Benin, Algeria, Nigeria, and Ethiopia, underscoring a growing competitiveness across the continent.
Libya’s emergence as a leading business hub marks a major shift for the North African nation, which has struggled with years of conflict but is now seen as regaining economic traction and international investor confidence.
Libya has been in chaos since a NATO-backed uprising toppled longtime leader Muammar Gaddafi in 2011. The county has for years been split between rival administrations.
Libya’s economy, heavily reliant on oil, has suffered due to the ongoing conflict. The instability has led to fluctuations in oil production and prices, impacting the global oil market and Libya’s economy.
The conflict has led to a significant humanitarian crisis in Libya, with thousands of people killed, and many more displaced. Migrants and refugees using Libya as a transit point to Europe have also faced dire conditions.
The planned elections for December 2021 were delayed due to disagreements over election laws and the eligibility of certain candidates. This delay has raised concerns about the feasibility of a peaceful political transition.
Despite the ceasefire, security remains a significant concern with sporadic fighting and the presence of mercenaries and foreign fighters. The unification of the military and the removal of foreign forces are crucial challenges.
