The bank announced the funding on October 27, outlining a program designed to strengthen business management capabilities, improve access to financial services and support the development of small and medium-sized enterprises (SMEs).
The initiative aims to address several barriers facing Libyan entrepreneurs, including limited access to finance, insufficient business management skills and weaknesses in institutional support for small businesses.
Libya's National Economic and Social Development Board (NESDB) will serve as the implementing agency, working in cooperation with the French international technical cooperation agency Expertise France.
A central component of the project is entrepreneurship training for 200 business owners and aspiring entrepreneurs.
Participants will receive practical instruction in business planning, financial literacy, project management, pricing strategies and marketing.
The program has established participation targets of 40% women and 50% young people, reflecting its focus on expanding economic opportunities for groups that may face additional barriers to entering the business sector.
Alongside entrepreneurship education, the project will seek to strengthen the capacity of financial institutions to serve smaller businesses.
The bank plans to train 50 financial professionals in Islamic finance and lending practices for micro, small and medium-sized enterprises.
It will also work with at least four financial institutions and SME support organizations to develop financial services better suited to the needs of entrepreneurs.
Particular attention will be given to designing microfinance products that respond to the financing requirements of women and young business owners.
The initiative combines business training with institutional support, recognizing that entrepreneurial skills alone may not be sufficient when access to suitable financial products remains limited.
Libya's economy has long depended heavily on oil and natural gas revenues. The energy sector continues to play a central role in national economic activity, making diversification and private-sector development important policy priorities.
Expanding opportunities outside the energy industry could provide additional sources of economic activity and employment.
However, many smaller enterprises face obstacles when seeking financing, professional advice and access to business support services.
For startups, limited credit histories and insufficient financial information can make it difficult for lenders to assess business risks.
The African Development Bank's initiative seeks to address these challenges through improvements in both enterprise capabilities and the institutions that provide financing and technical assistance.
Institutional development is another major component of the project.
The bank will support the review and validation of Libya's private-sector development roadmap and its implementation plan, while promoting stronger coordination among organizations responsible for supporting SMEs.
At least five national institutions are expected to receive capacity-building assistance in project monitoring, reporting and implementation.
The program will also encourage participating institutions to consider the economic inclusion of women and young people in their activities.
Another area of support involves Libya's credit information infrastructure.
The project will provide training and information-system improvements to the country's Credit Information Centre, with the aim of strengthening the quality and accessibility of information used by financial institutions.
Reliable credit information plays an important role in lending decisions by helping financial institutions assess borrowers' financial histories and repayment capacity.
For smaller enterprises, improvements in credit information systems could help reduce information gaps that complicate access to formal financing.
The program also includes measures related to environmental sustainability and resource efficiency.
Participating entrepreneurs and financial institutions will be encouraged to consider environmentally responsible business practices and climate-related factors in business development and financing.
Malinne Blomberg, the African Development Bank's Deputy Director General for North Africa and Country Manager for Libya, emphasized the importance of providing entrepreneurs with practical business capabilities, appropriate financing services and institutions capable of supporting long-term business development.
The project is aligned with the African Development Bank's Libya Country Engagement Strategy for 2025–2028, which prioritizes institutional capacity and governance improvements in support of reconstruction and economic diversification.
Rather than concentrating solely on direct financial assistance, the new initiative seeks to address structural barriers that can prevent small businesses from developing and expanding.
Its approach combines entrepreneurship training, financial-sector capacity building and improvements in the broader business support environment.
The effectiveness of the initiative will ultimately depend on whether participating entrepreneurs can establish or expand sustainable businesses and whether institutional reforms lead to measurable improvements in access to finance.
As Libya works to develop economic opportunities beyond the energy sector, the project represents a targeted effort to strengthen the foundations of private enterprise and encourage greater participation by young people and women.
넥스트포스트 황상욱 기자 andrew@nextpost.co.kr
