The historical economic ties between Tunisia and Libya have been characterised by close co-operation in various sectors, particularly through cross-border investments that have played a pivotal role, demonstrating mutual trust and a shared understanding of the benefits of this collaboration. Currently, investment prospects between the two countries have reached an unprecedented level. Trade between Tunisia and Libya has seen a remarkable increase of 70% in 2023 compared to the previous year.
Join Ashraf AMAMOU and Khalid Rekik from MOORE AR TUNISIA at the Libya Energy & Economic Summit scheduled for 13 – 14 January in Tripoli. The experts have compiled information on Libya and Tunisia trade and investment trends. The historic collaboration between Tunisia and Libya is flourishing, with a 70% surge in trade in 2023. Challenges persist, but opportunities are present especially in sectors like agri-food, ICT and construction.
Taking advantage of relative economic stability, both countries are making efforts to strengthen their cooperation by diversifying their economies, with a specific focus on sectors such as energy, infrastructure, agriculture, and information technology. This was materialized in November 2022 through the signing of a protocol aiming to enhance economic integration and develop inter-professional relations.
From 2001 to 2020, the main products imported by Libya held significant shares in Tunisian goods exports, highlighting complementarity between Tunisian export offerings and Libyan import demands, similar to that observed with Tunisia’s European partners. An examination of the evolution of Tunisia’s goods exports to Libya reveals that Tunisia and Egypt are the only African countries among the top 20 exporters to Libya.
According to the General Manager of the Tunisian Libyan Bank, 80% of Tunisian businesspeople have engaged in transactions or economic activities in the Libyan market, indicating a strong involvement of the majority of Tunisian businesspeople in this market.
Despite challenges, with over 1,000 Tunisian companies present in Libya before the revolution, the agri-food sector, construction materials, ICT, and construction offer opportunities for restart and development, creating a dual advantage for investment and employment for both countries. Similarly, consulting and research firms can offer their skills, expertise, and experiences in Libya’s development. Despite obstacles related to financing and guarantees for bank transfers, Tunisia can improve its economic position in Libya. The public authorities of both countries are working to assist Tunisian investors in overcoming these
obstacles. It would be prudent to reconsider economic relations with Libya by exploring partnerships with countries that have succeeded in this market, such as China, Turkey, and certain members of the European Union, leveraging geographical, linguistic, and cultural proximity, as well as complementarity in their trade exchanges. Tunisia could thus become an essential platform for trade, enhancing cooperation prospects.
To find out more, contact AMAMOU or Rekik at k.rekik@moore-tn.com or a.amamou@moore-tn.com.
