ISFD Director General Visits Libya to Discuss Economic Empowerment Initiatives

Tripoli, Libya, June 5, 2024 – Dr. Hiba Ahmed, the Director General of the Islamic Solidarity Fund for Development, visited Libya to enhance collaboration on crucial economic empowerment initiatives. Dr. Hiba met with key Libyan Government officials including H.E. Dr. Khaled Al-Mabrouk Abdullah, Minister of Finance, and H.E. Mr. Saddek Omar Elkaber, Governor of the Central Bank of Libya. 

The discussions focused on establishing the National Fund for Economic Empowerment and MSMEs Development (NFEE) based on the Memorandum of Understanding signed during the recent IsDB Annual Meetings in Riyadh. With an initial investment of US$250 million, the NFEE represents an important milestone in fostering Libya's Micro, Small, and Medium Enterprises (MSMEs), the lifeblood of the country's economy. 

The NFEE aims to significantly impact the country's economic landscape through fueling the growth of MSMEs in Libya by providing a tailored blended financial solution. It will offer a unique combination of financing and guarantee options, including equity, working capital, capital expenditure, and guarantee. This tailored financial solution will be complemented with capacity building and technical assistance to the end-users. 

The visit had also an important objective to agree with Libyan parties on the modalities of the establishment of a Joint Country Fund between the ISFD and the State of Libya and the contribution of the State of Libya to the ISFD capital. The Joint Country Fund is an endowment fund that will leverage resources co-invested by the Libyan Government and ISFD, with generated income directed towards socio-economic development programs in Libya based on the income utilization agreed upon. 

The establishment of these two initiatives demonstrates a shared commitment to advancing economic diversification in Libya, creating jobs, and achieving social development.