Libya’s transitional government said that it would review ousted leader Muammar Gaddafi-era investments across the country and in Africa. The National Transition Council said it would also be looking at telecommunications investments across the continent, which could see many Libyan investments withdrawn.
The news has left many companies in Africa with Libyan backing worried that it could leave a shortfall in funding, but Cairo-based securities analyst Hossam Tariq told IT News Africa that “it should not be an issue.”
He argued that Libyan-backed companies had for the past nine months been without investment and capital, “which means they have all survived without the money so I don’t envision much change to be had in the near future, but it could open up new opportunities for other investors in many locations, especially Sudan and South Sudan.”
“We have a general view to review all investments in the Arab world, the African continent and elsewhere,” Mustafa Abdul Jalil said at news conference with visiting Sudanese President Omar Hassan al-Bashir.
“There are some countries where investment will increase and others where projects will stop.”
“There are investments that are worthy of developing and there may be investments that would be better for the Libyan people for them to be closed,” Abdul Jalil said.
Under Muammar Gaddafi, Libya invested its oil wealth mostly in Europe but it also made major investments in Africa, the Middle East, North Africa and the United States.
Some of Libya’s major investments in Africa are managed by the $65-billion Libyan Investment Authority (LIA) through a $5 billion fund known as Libyan African Investment Portfolio (LAP).
The African fund investments includes LAP Green Network, a telecom company operating in six African countries, which officials said made losses due to U.N. sanctions.