The main objectives are:
- Regarding the EU4PSL component 1:
- Increase the capacity and awareness of MoE targeted staff in order to improve the impact of their work on the Libyan economy;
- Improve the rank of Libya in the Ease of Doing Business (EODB) report established by the World Bank;
- Support the implementation of a networked system One stop shop for entrepreneurs;
- Design a functional Trade Help Desk within most relevant institutions and in most suitable regions;
- Regarding the EU4PSL component 3:
- Improve banks’ potential activity in the financial sector as well as their overall performance, leading to the supply to financial products/services being offered to MSMEs.
- Improve innovative financial tools and microfinance services (financial and non-financial);
- Increase capacities of Libyan finance and microfinance institutions to comply with international banking standards, and supply finance products to MSMEs
- Support the upgrading of the Credit Information Bureau
- Support the reactivation of the Libyan National Guarantee Fund
- Establish a Venture Capital Fund
- Improving governance and internal controls with a stress on Anti-money Laundering
The expert will bring his in-depth knowledge and understanding of the Libyan economic and financial system. Particularly, he will have to:
- Facilitate contact with Libyan stakeholders especially with the MoE
- Collect any information of relevant interest related with the EU4PSL component 1
- support the work plan implementation in Libya
- promote the project of establishing a venture capital fund amongst Libyan potential investors, including, commercial banks, Funds, insurance companies, private investors, etc
The Expert will be responsible for the following:
- Identify key institutions/persons within the MoE for facilitating the implementation phase
- Conduct the needs analysis process in close coordination with the Component 2 key expert to define a capacity building plan for the private sector and investment department
- Support EF team for identifying main EODB weaknesses and Libya’s potential progress in EODB parameters
- Support EF team to assess the capacity of the OSS staff and the OSS functioning
- Establish Trade Help Desk within the Chamber of Commerce (data collection, contact details, partners mobilization)
- Mapping of relevant institutions;
- Contact all potential investors that may participate in the capital of the Venture Capital Fund VC, including, commercial banks, existing funds, insurance companies, private investors and other institutions that the expert may find relevant;
- Collect the current legislation, data and reports which are related to investment funds in Libya.
- Provide guidance for international consultants in carrying the VC market study;
- Support international experts in implementing the activities of the VC project;
- Liaising and support the organization of workshops, events, training programs and study tours;
- Monthly 1-page progress report
Expertise France intervenes in Libya over 4 donor-funded projects since 2014, all related to private sector development and entrepreneurship empowerment:
- SLEIDSE, an EU funded project, aimed at supporting economic diversification, with 3 component including component on access to finance
- MFI, on UK aid funds, to support the implementation of a micro-finance institution, in close partnership with a Libyan bank;
- STREAM aiming at setting up an incubator, accelerator and fab-lab programme in Tripoli;
- European Union for Private Sector in Libya (EU4PSL), an initiative funded by the EU is structured into 3 strongly inter-related components: 1) Strengthening the capacities of Ministries of Economy; 2) Supporting youth and women’s economic empowerment and start-up entrepreneurship; 3) Improving access to finance
The expert, under the direct responsibility of team leader, will work under the Component 1 and 3 of the EU4PSL project.
Description of Assignment:
Background for the specific mission
Libya is undergoing a complex political and economic transition in the aftermath of the conflict that overthrew the previous un-democratic regime. The country remains riven by fighting between rival militias supporting either the House of Representatives or General National Congress. The security situation has worsened since July 2014 preventing any foreigners to operate on Libya’s soil.
In the post-revolutionary years, the Libyan economy suffers from acute political division that does not allow reaching its potential. Following four years of recession, the Libyan economy recovered in 2017, thanks to the resumption in the production of hydrocarbon products, after key oil fields were repossessed from armed groups last year.
The political landscape in Libya causes significant obstacles to economic recovery, stability and growth. This is coupled with economic policies carrying the legacy of the past, a dominant centralised economic model which gives little room for the development of the private sector. In sectors where the public sector is dominant, private enterprises suffer from unfair competition with public enterprises affecting their productivity and growth prospects. Government controlled sectors such as oil and gas, defence, health, education, social services, and electricity, gas and water supply accounted for over 85.0% of the Gross Domestic Product (GDP) in 2018.
Libya has one of the most undiversified productive structures in the world: hydrocarbons account for 70% of the GDP, more than 95% of exports, approximately 90% of government revenue, and determine decisively the economic performance of the country. The lack of alternative revenue-sources makes Libya very vulnerable to oil price fluctuations or indeed oil blockades. Moreover, the reliance on import of goods makes the economy subject to currency fluctuations and inflationary pressures.
The private sector in Libya is dominated by the presence of micro, small and medium enterprises (MSMEs). A survey and private sector mapping carried out by the World Bank in 2015 confirms the assumption: 95% of the sample companies are MSMEs, out of which 59% considered small (5-19 employees), 23% medium (20-99 employees) and 13% micro (up to 5 employees). From the sample, only 8% of the enterprises engaged in exporting activities. There is no official data on the number of MSMEs in Libya. The 2006 Business Census reported a total of 117.828 enterprises, but the figure is likely to have changed drastically since then. In the OECD area, Small and medium enterprises (SMEs) are the predominant form of enterprise, accounting for approximately 99% of all firms. They provide the main source of employment, accounting for about 70% of jobs on average, and are major contributors to value creation, generating between 50% and 60% of value added on average. In addition, SME development can contribute to economic diversification and resilience. This is especially relevant for resource-rich countries that are particularly vulnerable to commodity price fluctuations. These figures account for much less in Libya, however they are indicative of the growth prospects and the employment opportunities MSMEs can create in an economy. A targeted policy intervention to improve the conditions for private sector development and employability in Libya should focus on the support to MSMEs.
The private sector on the other hand remains very small, representing only about 5.0% of GDP and about 14.0% of employment (4.0% to 6.0% of employed workers and about 8.6% of self-employed). These are low contributions to the economy by any international standard; private sector share of total values varies greatly, ranging from 90% in the trade sector to 10 % in the finance sector. A small and underdeveloped manufacturing sector representing about 3.2% of GDP in 2012, a construction sector of less than 2% of GDP and a real estate sector of about 5.0% of GDP are comprised of a mix of public and private sector enterprises. The manufacturing sector is largely composed of state-controlled enterprises in heavy industry, with two strong privately driven subsectors, food processing and building materials production.
Informality is a common problem even in advanced economies, but it generally tends to be smaller in countries with a business-friendly regulatory regime, secure property rights and a stable judicial system. A large share of economic activity in Libya belongs to the informal sector, already in 2010 estimated at 30,9%, which is higher than most of the countries of the region with similar income levels. Despite the lack of reliable data, the assumption that this figure has grown in the post-2011 period may hold significant validity.
To support Libyan economic recovery, Expertise France, with the financial support of the European Union and in cooperation with international partners, has developed a set of targeted activities based on several years’ experience in order to improve Libya’s business environment.
- Bachelor’s degree in finance, Economics, Banking, or other related fields;
- A minimum of five (5) years of relevant work experience in a Libyan financial institution or investment fund;
- Good understanding of social, economic and political situation in Libya
- Work experience in government bodies at national and/or local level is desirable;
- Excellent analytical and writing skills;
- Fluent in Arabic, and faire in English .
- Fully-computer literate.
Location and duration:
Duration: Up to 440 days
Period: From 15 February 2020 to 31 December 2022
Location: Libya and Tunisia.
Timesheet: At the end of each month, the expert will present a detailed timesheet which will be signed by both key experts. The timesheet should indicate a brief description of activities performed during the month and results achieved.
The working language of the programme and the language used in all reports and communications between the consultant and the team shall be English (UK spelling preferred).
The expert hereby undertakes to maintain confidentiality and not to disclose any information during and after the completion of the assignment with respect to all business matters of which he learns during his time with the programme and the outputs that are developed. Permission must be obtained from the programme before any publication.
To Apply, please send your CV to firstname.lastname@example.org