Predatory army will stifle east Libya economy

Subject

Eastern economy.

Significance

Discussion of economic issues in Libya generally focuses on the national and macroeconomic picture, and economic governance in the capital, Tripoli. However, the self-proclaimed governing authorities in Beida and Tobruk, plus Field Marshal Khalifa Haftar’s Libyan National Army (LNA), and associated armed groups, also seek to control and raise revenues from a range of formal and informal economic activities. This has included predatory economic activity and profiteering.

Impacts

• Haftar and the LNA will press on for greater allocations from the national budget for public institutions and employees in eastern Libya.
• Smuggling and migrant trafficking will be lucrative sources of income for the LNA.
• Circulation of increased oil revenues will reduce the risk of Libyan bank failures.