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February 2024
USAID Mobilizes Domestic Capital for Small Businesses in Fezzan
 USAID is providing entrepreneurs in Fezzan with a range of technical assistance to address business development needs.
In late January, USAID made a significant stride by signing a historic agreement to expand financial services to micro, small, and medium-sized enterprises (MSMEs) in the Fezzan region of southern Libya. This initiative underscores the pivotal role microfinance plays in stimulating economic development by facilitating financial inclusion for small businesses and aspiring entrepreneurs, particularly among marginalized demographics such as women and youth, who often encounter obstacles in accessing financial resources.
Notably, this agreement marks the first time ever that a microfinance institution will operate in Fezzan. Made possible through collaboration with USAID, the initiative pledges to extend financial services to a minimum of 50 small businesses. Through a microfinance arm of a local bank, MSMEs—many of which have been excluded from conventional financial products or institutions—will now have the opportunity to apply for microloans of up to $10,000 to build their businesses and drive more inclusive economic development in the south.
To galvanize this investment, USAID is offering technical assistance to MSMEs, addressing a spectrum of business development needs. By coupling financial access with tailored technical support, USAID is propelling inclusive economic growth in southern Libya—a pivotal stride towards empowering marginalized groups, combating the illicit economy, and catalyzing reconstruction and development efforts.
Solar Streetlights Bring Security to Murzuq Neighborhoods
 Community volunteers install solar street lights in Murzuq.
In 2019, clashes between Tebu and Ahali community members in Murzuq, a city in southern Libya, resulted in the displacement of nearly 60 percent of its population and extensive damage to infrastructure, including the electrical power grid. The absence of essential services, such as electricity, has impeded the return of many displaced families to their homes. To address this challenge, USAID is collaborating with the Murzuq Steering Committee to ensure the fulfillment of a commitment from the General Electric Company in Libya to complete $3 million worth of required infrastructure repairs.
In the meantime as an interim step, USAID is enhancing neighborhood safety by providing and installing 120 solar street lights. These solar-powered lights are now up and running in the Albaherat, Mughraif, and Mater districts, and they will soon be installed in a fourth district of Khalaha. USAID ensured community input and accountability about the placement of the lights by facilitating and supporting meetings between the Murzuq Steering Committee - the new local government - and community members. The streetlights not only enhance safety and facilitate the return of displaced individuals, but also enable local businesses to operate for extended hours, thereby increasing economic activity and local income.
Through its support for the Murzuq Steering Committee, USAID is enhancing living conditions for residents while also helping to build confidence in local governance, thereby promoting stability in a region striving to move beyond past conflict .
Forging New Paths: Experiences from a Local Election Campaign Manager
 Abdel Fattah Bannour is teaching Libyans how to successfully engage in the political process.
Elections in Libya are still in their infancy, with the inaugural public vote occurring just over ten years ago. As Libya works towards a democratic transition, USAID is equipping young Libyans with the skills needed to spearhead political transformation, bolstering political parties and helping to support issues based local elections campaigns.
Abdel Fattah Bannour, an advisor at the Ministry of Foreign Affairs and International Cooperation, has long harbored a fervent commitment to democracy. In 2019, he participated in a non-partisan and inclusive USAID election campaign management training where he gained proficiency in planning, organizing, and overseeing political campaigns. Putting his newfound expertise into practice, Bannour contributed to electoral efforts in Misrata.
Subsequently, in 2020, he seized an opportunity to aid a fresh cohort of people running for municipal government in Tajoura. These aspiring candidates were eager to engage politically, but lacked the requisite campaign management skills. Leveraging his USAID training and prior campaign management experience, Bannour emerged as an invaluable resource for the nascent "Altaj" party. He orchestrated a series of robust outreach initiatives, spanning traditional media, social platforms, and door-to-door canvassing. Reflecting on his transformative journey, Bannour remarked,
“Everything changed when I decided to embark on a different path by enrolling in USAID’s Election Campaign Management training. The outcome was nothing short of remarkable - I helped lead candidates to a resounding victory in the Tajoura municipal elections using the skills I learned from USAID.”
Today, Bannour is a well-established consultant in the field of campaign leadership. When asked if he has advice for Libyans looking to get involved in politics, he strongly recommended USAID programs, urging young individuals in particular to actively engage in the political arena. Through fostering civic involvement and amplifying marginalized voices, USAID is nurturing a new cadre of political participants, fortifying Libya's democratic fabric.
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USAID Enhance Voter Education and Engagement in Advance of Libya's Municipal Elections
 Participants from 13 CSO are bringing skills back to their community to encourage voter participation. (photo credit: HNEC)
When national elections did not occur in 2021, many Libyans grew disillusioned with the political process. However, the prospect of upcoming municipal elections presents hope and offers Libyans across the country the opportunity to advance democracy and influence local politics.To ensure widespread participation in these elections, USAID is partnering with the High National Election Commission (HNEC) to enhance voter education and awareness.
Recognizing the crucial role of civil society organizations (CSOs) in these endeavors, USAID and HNEC recently convened a training for 27 representatives from 13 CSOs from the South, West, and East of Libya for a four-day session at the HNEC media center. During the workshop, participants received insights into HNEC outreach campaigns, learned about voter outreach planning and implementation, and familiarized themselves with voter registration procedures for the planned municipal elections. They also collaborated on developing and presenting ideas to bolster voter engagement within their respective communities. Reflecting on the experience, a participant from the Majaal Organization in eastern Libya said,
“This has been amazing! Getting to work with HNEC and other CSOs gave us a big push and made us believe again that elections are happening. Now it is municipal elections, but one day it will be national elections.”
Armed with newfound skills and voter engagement strategies, participants have returned to their communities and organizations, collaborating with additional volunteers to amplify voter education and outreach efforts with the collective goal of enhancing citizen participation in the upcoming elections- particularly among women, youth, and persons with disabilities.
Balance of Payments Platform Puts Critical Data at Central Bank’s Fingertips
USAID has played a pivotal role in enhancing the Central Bank of Libya's financial management capabilities through the development of an innovative Balance of Payments (BOP) platform. This tool, crucial for tracking financial transactions between residents and non-residents, addresses the data collection challenges faced by the bank since the 2011 revolution. By leveraging anonymized SWIFT data and ensuring accurate transaction coding through extensive training, the platform now offers precise and comprehensive financial insights, facilitating better economic decision-making.
The collaboration between USAID and the Central Bank has not only streamlined data collection processes but also fostered interdepartmental cooperation and efficiency. he initiative has significantly improved Libya's foreign trade reporting and economic management.
"This has made for a far more efficient BOP system, which facilitates smoother workflow and saves effort, time, and costs," said Mohamed Nasrat, the official in charge of the BOP platform.
The IMF has recognized the progress made by Libyan authorities in improving data collection, noting in a November report,
"We welcome the reforms undertaken by the Libyan authorities this year... There has been notable progress towards improving data collection."
This acknowledgment underscores the international community's recognition of the strides Libya has made in enhancing its economic data infrastructure, thanks to the support from USAID.
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Investment Framework Will Help Libya Generate Much Needed Income From Reserves
Making good use of reserve funds is critically important to any country. If reserves are not invested in a way that helps maximize returns, a country can miss out on significant additional income. In a country like Libya, which has billions of dollars in reserves, investment decisions have material implications on wealth creation.
Collaborating closely with the Central Bank of Libya (CBL), USAID experts developed a strategic asset allocation framework to optimize returns and minimize risks associated with investments of reserves. The collaboration culminated in late 2023 with the implementation of guidelines to operationalize the strategic asset allocation framework. Libya has about $80 billion in reserves. An analysis by USAID experts showed that an optimal investment of reserves could generate up to an additional $1 billion in income per year – which can be used to fund vital services.
The new framework and implementation guidelines have major implications for all Libyans. By increasing investment returns on the country’s reserves, Libya can become more resilient to external shocks and maintain confidence in the Libyan Dinar, simply due to better reserve and risk management practices.
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