Libya: The Colonel Is Back In Business - The Herald (UK)
As A Scots Trade Mission Prepares To Leave For Libya
Paul Gains, in Tripoli, explores the country they will find
and the political reality they must learn to accomodate
The Herald (United Kingdom), February 21
IN a building that could easily pass for any one of several foreign embassies in the area, all of them surrounded by ten foot walls with a guard posted outside, Mr Abdallah Elbaruni, chairman of the Libyan Union Federation Chambers of Commerce, sips espresso with a foreign visitor. It is the custom to build a relationship before coming to the business at hand.
Across the hall in an office decorated with a calendar marking the year 1998 and a map of the world on which the Islamic countries are marked in green, three women in traditional Arabic headdress sit quietly at their desks.
There is no urgency to their tasks. Despite the impression given, Mr Abdallah wishes to announce Libya is open for business.
Next week, a trade mission from Scotland will arrive in Tripoli to explore business opportunities now that the United Nations sanctions have been removed - and they are by no means pioneers.
'The sanctions affected all of Libya not just Tripoli,' said Mr Abdallah.
'We suffered a lot for seven years. But since the sanctions stopped many missions have come from different countries. More than 20 delegations from different countries have come.'
At the Hotel Al Kabir a coach pulls up every morning and a procession of German businessmen, conspicuous in their Western suits and ties, winds its way out the front doors and on to the bus. Another day, another visit to a government facility.
The leader of the Great Socialist People's Libyan Arab Jamahyria - Colonel Gaddafi - who celebrated 30 years in power last September, recently gave an impassioned speech to his people in which he held up an invoice for $1.5m (Pounds 937,500) someone in his government had spent on importing chocolate.
'Why can't Libya make chocolate?' he implored.
While chocolate may not be a crucial item on the list of Libyan staples, the Colonel was simply illustrating what many foreigners have long known - Libya is Africa's wealthiest country, boasting a GDP of nearly $25 billion (Pounds 15.6bn), but is technically well behind in production.
And so the Europeans queue up. There are companies bringing in spare parts for the oil rigs, firms supplying pressure gauges and drills, and engineers showing the Libyans where and how to find oil in the Sahara desert. Even the Great Man Made River, an ambitious pipeline stretching 800 kilometres into the Sahara desert and which transports water to the coastal cities, was overseen by a foreign firm.
But the companies will learn that the Libyans want more than to be plundered for their natural resources, of which oil, gas, petro-carbons, steel and water are the most noteworthy. They are looking for partners.
'There's a very good standard of technical education here and strong academic links with Europe,' said Mr Bill Ridout, head of the commercial section of the British Embassy, which opened just a month ago.
'Surprisingly, Britain is the destination of choice for people who want to study abroad. There's quite a sophisticated level of technical education in Libya, actually.'
According to latest government figures, 76% of the population is literate, thanks in no small part to the fact education, like healthcare, is free.
As an example of the UK's initiatives, Mr Ridout pointed to the Partnership for Progress business fair the British embassy will be putting on in May at the Tripoli International Fairgrounds.
While the Arabic manner of doing business may not be palatable to some of the British entrepreneurs who descend upon the country, those with a view to doing business for the long term will be rewarded, said Mr Ridout.
Frustration at a system that embraces neither capitalism nor communism has left several opportunists shaking their heads. Decision making is the domain of people's committees, although the leader can veto those decisions if he doesn't agree with them - and since most Government workers earn between 300 and 500 Libyan Dinars (about Pounds 93-Pounds 156) a month there's not a lot of incentive to make a quick decision.
I asked Mr Abdallah what incentives there were for foreign businessmen to invest time and money in Libya. He referred me to 'Law Number Five' which one of the secretaries brought in.
A quick perusal of the book later sheds some light on the quest for foreign business. It is possible, apparently, to own 100% of a business in Libya and to invest the profits outside the country.
The Libyan government, which holds the cards when it comes to large business operations, would like to see modern technology developed here as well as their nationals trained in technical operations.
There are no credit cards here. Credit is an unknown commodity. Libya is debt free. People buy everything with cash. That explains why they work six days a week with only Fridays off for Islamic holidays.
As one European put it: 'Libya's wealth came by chance not by industry. The industrial age is just beginning.' |
