Libya instability ‘wreaks havoc on Malta businesses’

Frank Farrugia, leading the Libya Crisis Committee panel of the Malta Chamber of Commerce, has described the situation in the North African country as very unpredictable.

“Our business contacts in Libya are still there, but the situation is very different from two years ago. We knew whom we had to talk to and had well-established government contacts, today there is nobody to contact,” he told MaltaToday.

“The Maltese government is assisting businesses on a case by case basis, through Malta Enterprise,” Farrugia said, who is also managing director of Alcom, an import-export business that also operates in Libya.

“From a business perspective, so far, Alcom has managed to hold on to its Maltese employees in Libya, while most other Maltese companies in Libya have found their workers alternative employment,” he said, laying emphasis on “so far.”

“We hope our business contacts remain valid and our stocks were not looted – that’s another concern.”

The problems faced by businesses in Libya are manifold.

“Banks are not operating in Libya, so no payments can be made or received. Furthermore Air Malta no longer operates to Libya, so getting there means flying to Tunis and covering the rest of the trip by road, which is highly dangerous. The Djerba route is no longer viable.”

The instability has resulted in losses for every business in the country. “Time has been wasted, loans are gathering interest… the problems are tremendous.” The best case scenario in his view “would be a strong Libyan central government with a clear direction, that issues clear contracts”.

Farrugia hasn’t given up hope however, adding that the political and administrative vacuum in Libya has created “big opportunities, but also big risks”.

“We just have to wait and see.”