Action Plan - Libya

Libyan Oil

Germany is pursuing its strategy on the basis of the "10 Point Action Plan - Libya" presented September 23, 2011, which briefly, but poignantly, sketches Libya's importance for the German economy, underlining, in particular, the importance of Libyan oil resources for German industry. In 2010, according to the document, Germany bought three billion Euros worth of crude oil and petroleum derivatives from Libya.[1] In fact, for a long time, Libya had been Germany's largest and - in 2010 - still the second largest non European oil supplier. Hence, the "Action Plan" is calling for a rapid restoration of oil production and export. Germany's interest in access to, and control of, Libyan energy resources is also reflected in its drive to participate in the "reconstruction" of the energy sector ("prospecting, production and marketing the oil; modernization of refineries"). In addition, the "Action Plan" points to Libya's importance in the renewable energy sector. The country is considered a possible site for the German Desertec project, aimed at extensive exploitation of the North African sun and wind energy potential for European consumption.[2] And finally, the document states that Germany could participate in the "reconstruction" of the country destroyed by the war. This would mean profitable business for German enterprises, especially in the sectors of health, transportation, "machine and means of transport", according to the ministry of the economy.[3]

Enhancing Cooperation

The "Action Plan" announces concrete steps for supporting the fulfillment of German business interests. In close cooperation with business and entrepreneurial associations, the German Ministry of the Economy intends "to specifically identify (…) fields for concrete cooperation." The rapid establishment of a business office or a chamber of commerce in Libya as well as business delegation visits are already planned. The minister of the economy will personally visit Tripoli - as usual "accompanied by representatives of private companies." In Berlin, a "session of the German Libyan Economic Forum, with prominent Libyan participation" should be convened as soon as possible. In addition, the paper announces an intensified use of Hermes export credit guarantees and proposes a "transformation partnership" with Libya - along the lines of similar initiatives with Tunisia and Egypt. Ultimately, the paper proposes that the Ministry of the Economy offer "to have the economic policy reforms accompanied" by "its own transformation teams and an advanced training program for managers."[4]

A Rich Country

Even before Gadhafi was overthrown, representatives of German business and entrepreneurial associations were showing keen interest in the profitable business in post-Gadhafi Libya and were establishing their initial contacts to the insurgents. The German-African Business Association visited Benghazi at the end of July with a delegation of 20 representatives of German companies, under the leadership of the Parliamentary State Secretary in the German Ministry of the Economy, Hans-Joachim Otto and met with the Transitional National Council for talks.[5] When Gadhafi was overthrown, Steffen Behm, the North Africa expert of the German Chambers of Industry and Commerce (DIHK) emphasized the interest of German companies and saw the possibility of future investments.[6] In a radio discussion, the chairman of the German African Business Association, Hans W. Meier-Ewert, called on German companies to become active in Libya, regardless of the difficulties. After all, he explained in reference to the profits to be made on Libya's natural resources, Libya is "a rich country."[7]

Facilitate Business

In this transformation process, the German-African Business Association is continuing to pursue its activities in Libya - in close cooperation with the German government. On September 29, it convened a conference under the title "The New Libya," which was attended by 120 representatives of German companies as well as a 10 member Libyan delegation under the leadership of Abdelsalam Kablan, a member of the Council of Finances of the Transitional National Council. The German Ministry of the Economy delegated Hans-Joachim Otto to attend the conference, where he presented Berlin's concept along the lines of the "10 Point Action Plan." Foreign Minister Westerwelle personally attended and confirmed in his welcoming address that, to facilitate business, the German government supports "the earliest possible" comprehensive lifting of sanctions against Libya. Of the Libyan deposits frozen in Germany, the government has already placed a billion Euros worth of assets at the disposal of the Transitional National Council. In addition, Westerwelle announced the possibility of a 100 million Euro credit to the new Libyan government.[8]

Gladly First

To what extent Berlin will be able to achieve German interests in Libya remains uncertain. It seems that Wintershall, a BASF subsidiary, which was the largest foreign oil producer in the country during the reign of Gadhafi, has successfully warded off threats to its maintaining production licenses. Whether Tripoli really will significantly reduce its cooperation with those countries that did not militarily support NATO's war on Gadhafi, is still unknown. In any case, Abdelsalam Kablan, of Libya's Financial Council, encouraged Germany at "The New Libya" Conference. "Even though Germany came late, it can gladly be the first."[9]

[1] Bundesministerium für Wirtschaft und Technologie: 10-Punkte-Aktionsplan Libyen, 23. September 2011
[2] see also Solarkolonien, Nutznießer der Repression (II) and Ein ausgezeichneter Partner (II)
[3], [4] Bundesministerium für Wirtschaft und Technologie: 10-Punkte-Aktionsplan Libyen, 23. September 2011
[5] see also Arbeit für die Bauindustrie
[6] Pressemitteilung der Deutschen Presseagentur vom 23.08.2011; www.dpa.de
[7] Deutsche Unternehmen hoffen auf Aufträge; www.swr.de
[8], [9] Nationaler Übergangsrat wünscht deutsches Engagement; www.afrikaverein.de