Libya Sets Course for Transport Sector Reform with AfDB Support

Libya Sets Course for Transport Sector Reform with AfDB Support

Libya is taking a measured step towards rebuilding one of the most critical pillars of its economy, with a renewed focus on transport infrastructure as both an enabler of growth and a stabilising force. A three-day technical workshop led by the African Development Bank Group has laid the groundwork for a comprehensive transport sector strategy designed to support the country’s economic recovery and long-term resilience.

Held in Tunis at the Bank’s North Africa regional office between 15 and 17 April, the session brought together senior Libyan officials, sector authorities, and development experts to define how a strategic transport sector study will be implemented. While modest in budget, the initiative signals a broader shift towards structured planning and coordinated investment in a country where infrastructure fragmentation has long constrained economic performance.

The study, financed through a $340,000 grant from the Bank’s Middle-Income Country Technical Assistance Fund, alongside Libyan government contributions, aims to move beyond diagnosis and into actionable reform. It’s not simply about identifying problems. It’s about building a pipeline of viable projects, restoring institutional coherence, and creating conditions where public and private investment can flow with confidence.

Briefing

• African Development Bank supports Libya with a technical assistance grant to develop a national transport strategy
• Study will assess gaps, prioritise investments, and recommend policy and institutional reforms
• Workshop in Tunis aligns Libyan authorities on implementation and delivery framework
• Focus includes private sector participation and development of bankable infrastructure projects
• Initiative supports Libya’s broader economic recovery and connectivity goals

Transport as a Foundation for Economic Recovery

Libya’s transport network has suffered from years of underinvestment, disruption, and institutional fragmentation. Roads, ports, and logistics systems remain uneven in quality and capacity, limiting internal mobility and constraining trade flows across North Africa and beyond. Rebuilding this system is not just a technical exercise. It’s central to restoring economic activity and improving everyday life.

An efficient transport system underpins access to markets, healthcare, education, and employment. In Libya’s case, where geographic distances are significant and regional disparities remain pronounced, connectivity becomes even more critical. Poor transport links have contributed to the isolation of communities and reduced the efficiency of supply chains, particularly for key sectors such as oil, construction, and agriculture.

The African Development Bank’s involvement reflects a recognition that infrastructure recovery must be guided by a coherent strategy rather than piecemeal interventions. By anchoring investment decisions within a structured framework, Libya can prioritise projects that deliver the greatest economic and social returns while avoiding duplication and inefficiencies.

From Fragmentation to Strategy

The workshop in Tunis marked an important step in aligning stakeholders around a common approach. Representatives from Libya’s Ministry of Transportation, Ministry of Finance, and key sector agencies worked alongside Bank experts to define implementation arrangements and agree on next steps.

Led by Issam Abdallah Al-Qouri of the Ports and Maritime Transport Authority, the Libyan delegation included senior officials from the Land Transport Authority and the Roads and Bridges Implementation Authority. Their participation highlights the multi-modal nature of the challenge. Roads, ports, and land transport systems must function as an integrated network rather than isolated components.

The study itself will provide a detailed situational and gap analysis, identifying weaknesses in infrastructure, governance, and service delivery. This will be followed by a strategic plan outlining prioritised actions over the short to medium term. Importantly, the work will extend beyond infrastructure to include policy and institutional reforms, recognising that governance plays a decisive role in sector performance.

Building a Pipeline of Bankable Projects

One of the most significant outcomes expected from the study is the identification of bankable projects. For Libya, this represents a shift towards investment readiness, where projects are developed to a standard that attracts financing from development institutions and private investors alike.

Globally, infrastructure financing has become increasingly competitive, with investors seeking well-prepared projects that demonstrate clear returns and manageable risks. According to the World Bank, the infrastructure financing gap in developing economies runs into trillions of dollars annually, making project quality and preparation more important than ever.

By establishing a pipeline of credible projects, Libya positions itself to access a broader range of funding sources, including public-private partnerships. The study will include recommendations to strengthen private sector participation, an area that remains underdeveloped in Libya’s transport sector but holds significant potential for accelerating delivery and improving efficiency.

Policy Reform and Institutional Strengthening

Infrastructure alone cannot deliver results without effective governance. The study therefore places strong emphasis on policy and institutional reform, addressing issues such as regulatory frameworks, coordination between agencies, and capacity building.

In many post-conflict and transitioning economies, fragmented institutional structures can slow down project delivery and reduce accountability. Libya is no exception. Strengthening institutions and clarifying roles will be essential to ensure that investments translate into tangible improvements on the ground.

The production of key reports in Arabic, English, and French is a practical step towards ensuring broad ownership of the strategy. By making the findings accessible to a wide range of stakeholders, including international partners, the initiative supports transparency and collaboration.

Enhancing Connectivity Across North Africa

Libya’s strategic location offers significant opportunities for regional integration. Positioned between North Africa, the Sahel, and the Mediterranean, the country has the potential to serve as a key logistics hub linking African markets with Europe.

Improved transport infrastructure could facilitate trade corridors, reduce transit times, and enhance competitiveness. For neighbouring countries, better connectivity with Libya could open new routes for goods and services, supporting regional economic integration.

“An efficient and integrated transport system connects people to opportunities, facilitates trade, and enhances quality of life,” said Malinne Blomberg, Deputy Director General for North Africa and Country Manager for Libya at the African Development Bank.

Her statement reflects a broader understanding that transport is not just about moving goods. It’s about unlocking economic potential and improving living standards across entire regions.

Aligning with Long-Term Development Goals

The initiative aligns with the African Development Bank’s Ten-Year Strategy, which emphasises infrastructure development, regional integration, and inclusive growth. For Libya, the study provides a reference framework that can guide transport policies and investments over the coming years.

Resilience is another key theme. Climate change, economic volatility, and political uncertainty all pose risks to infrastructure systems. By incorporating resilience into planning and design, Libya can build transport networks that are better equipped to withstand future challenges.

The focus on underserved areas is particularly significant. Reducing geographic isolation not only improves equity but also stimulates economic activity in regions that have historically been left behind. This aligns with global development priorities, including those outlined by the United Nations in its sustainable development agenda.

Turning Plans into Progress

While the study represents an important milestone, its success will ultimately depend on implementation. Translating strategy into tangible projects requires sustained commitment, effective coordination, and access to financing.

The workshop in Tunis has set the stage, but the real work lies ahead. By establishing clear implementation arrangements and aligning stakeholders early, Libya and its development partners have increased the likelihood that the strategy will lead to meaningful outcomes.

For the construction and infrastructure sector, the implications are clear. A structured pipeline of projects, backed by institutional reform and international support, creates opportunities for contractors, investors, and technology providers. At the same time, it offers a pathway for Libya to rebuild its transport system in a way that supports economic recovery and long-term growth.

If the momentum continues, the initiative could mark the beginning of a more coordinated and resilient approach to infrastructure development in Libya, one that balances immediate needs with long-term ambition.