Why does Libya need an SME strategy?
Libya faces an uncertain future as oil production falls behind population growth, resulting in increasing poverty and high unemployment (13.5% in 2010 with youth unemployment at 25%‒30%). The economy should move away from its dependence on the oil sector.
Currently, major constraints in the financial sector include: a conflict of interest with the banking sector; huge collateral requirements for start-ups; low-levels of financial intermediation .
How the Libya Project contributes
The SME Development Strategy in Libya seeks to enhance entrepreneurship and SME development by strengthening the overall legal and institutional framework and providing guidance for state-led activities targeting entrepreneurs and investors.
The SME Development Strategy in Libya is a three-year project providing a clear roadmap with comprehensive measures regrouped under five components:
- Component 1 is a diagnostic study providing an in-depth look of the SME environment in Libya;
- Component 2 develops through a participative process the actual SME development strategy;
- Component 3 develops, as part of the implementation of the strategy, the necessary legal framework for enterprise development, proposing amendments and, if appropriate, a separate SME law;
- Component 4 provides a substantial implementation assistance, covering both general institutional capacities and the design and implementation of key projects;
- Component 5 proposes a comprehensive programme to improve access to finance for SMEs and start-ups. It will be implemented in close collaboration with the Islamic Development Bank.
MENA Transition Fund
Consultative meeting for the diagnostic study - 25-26 September 2014, Paris, France
Coordination meeting between Libya Enterprise and the OECD - 9-11 December 2013, Tunis, Tunisia
Initial Project Steering Committee meeting - 8-12 September 2013, Tripoli, Libya
For further information, please contact
Mr. Florian Theus, Libya Project Coordinator