Benghazi attack reignites fears for business in Libya

Unrest has sparked new worries among Maltese businessmen operating in or through Libya.

US ambassador Chris Stevens.
US ambassador Chris Stevens.

Difficult times have cropped up yet again in Libya for businesses seeking to return to a secure environment and reap the riches of the post-Gaddafi democracy, after a deadly attack on the US consulate in Benghazi and the murder of US ambassador Chris Stevens saw the immediate deployment of an elite group of marines to Libya earlier this week.

The unrest has sparked new worries among Maltese businessmen operating in or through Libya, and whether such attacks could dent Libya's prospects to offer a safe economic environment.

But while the Libyan embassy in Malta told MaltaToday it's "business as usual" for their government, on the other hand Libya Herald editor Michel Cousins - so far Libya's only independently-run English-language online newspaper - categorically described the event as 'catastrophic'.

"'It's a catastrophe' is the view being heard from foreign diplomats and Libyan businessmen and activists alike," Cousins says, who adds that the security concern didn't just trigger off due to this week's attack.

"There was concern already about security because of the Salafist attacks on mosques and Sufi shrines. People, including businesses in Malta - I know because I spoke to some - were nervous about the government's ability and willingness to enforce law and order." 

Cousins gave a recent example of an Austrian business delegation who arrived this week and that originally had a dozen companies signed up to participate: "In the end only three turned up."

"That is made so much worse with the killing of Chris Stevens. 'No one is going to come', the commercial attaché at one European embassy told me. 'There is no point even bothering to ask any of our ministers to come here at the moment' said another ambassador."

Libya's major foodstuffs importer, Husni Bey of the HB Group, concurs as he reminisces about Stevens as a martyr for his country's democracy. "Chris's death will certainly have a negative effect on foreign investment, but the people of Libya know that whoever committed the murder represent only themselves. Libya will emerge stronger and more determined to change, develop, grow economically to get where it really belongs."

In Malta, the chairman of oil logistics company Medserv, whose base is in Misurata, says Stevens's assassination is expected to slow down business in the short-term.

"However, as has happened many a time before, these shocking events could in fact act as the catalyst to bringing together what is needed to start addressing the security situation in Libya," Anthony Diacono told MaltaToday.

"While acknowledging the fact that the incident will slow down the return of oil companies to Libya in the short term, one must note that the oil industry is quite used to working in difficult areas.

"Furthermore, those companies that already have concessions and facilities, especially offshore activity in Libya, will continue to operate or resume operations as planned."

Corinthia Group chairman Alfred Pisani, whose hotel chain is a major player in the Libyan tourism market, hopes that "the dynamics of the development of a country should not be held back by a single incident, unfortunate as the incident may be."

But even Joe Schembri, a trade chief at Malta Enterprise, the government investment arm which organises business delegations to Libya, says security remains an issue in Libya since having endured several crises and now faces the struggle to disarm militias.

"While things are progressing on various fronts - including the election of the National Assembly in July and the appointment of a new Prime Minister on Wednesday night - the attack is a major concern," Schembri said, who added that Malta Enterprise is actively observing the situation as it develops, particularly through its commercial office in Tripoli.  "We remain committed to assisting Maltese enterprises to do business in Libya."

 

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Rita Pizzuto
I beg to differ about a matter I have read in this article. The Libya Herald is not the only independently- run Engkish language online newspaper. There is also Tripolipost.com which I have been logging on to for years and it was the only online news portal from Libya that has kept the world updated during last year's revolution in Libya. The Tripoli Post is also the only English language newspaper in Libya and has been published since at least 10 years. This weekly newspaper, which I am subscribed to is the only publication that is professionally and is privately owned. It is truly independent, as it content so clearly shows. I hope that this clarifies the wrong impression that has been given by the comment in the article