Libya’s efforts to diversify its economy were on the agenda in October talks between its economy ministry and Expertise France. The discussions covered investment conditions and workforce development, issues relevant to businesses seeking to expand production inside the country.
In Benghazi, Zulfa Food Industries is developing a milk and juice processing plant with Tetra Pak, the international food processing and packaging company. Part of Ahmed Gadalla’s Alushibe Group, the roughly €14 million project is one example of the investment Libya needs to broaden its economy beyond oil.
The aim is to process and package more of the products Libyan consumers already buy. With modern equipment and Tetra Pak’s technical expertise, Zulfa intends to build a Libyan brand and give shoppers more locally made options.
The project also represents a practical form of international cooperation, pairing Libyan capital and market knowledge through Gadalla’s group with an overseas partner’s technical expertise.
Why Moving Beyond Oil Is Difficult
Libya’s challenge extends beyond attracting individual investments. The World Bank identifies an underdeveloped private sector, weak infrastructure, and heavy public-sector dominance as constraints on growth. Years of conflict and underinvestment have made expanding domestic businesses more difficult.
In its 2025 assessment of Libya’s economy, the International Monetary Fund called for better access to finance, stronger governance, and measures to encourage private-sector employment. It also warned that political instability could disrupt oil production and prevent economic reforms.
Building an economy beyond oil therefore means more than opening factories. Businesses need conditions that allow them to operate consistently, secure financing, and hire skilled workers. Projects such as Zulfa can contribute to that shift, but their wider impact will depend on whether those conditions improve across the economy.
Skills, Investment and the France Talks
In its October 11 report, The Libya Observer said Economy and Trade Minister Souhail Abu Sheiha and Expertise France regional director Séverine Peters discussed improving the investment climate and diversifying Libya’s economy. They reviewed progress on EU4Skills and INVEST4Libya, alongside preparations for an upcoming steering committee meeting.
Both programs are funded by the European Union and the French government. EU4Skills focuses on matching workforce skills to employers’ needs, while INVEST4Libya supports economic governance and better conditions for investment.
A food processing plant touches several of those areas at once. Equipment requires trained operators and maintenance technicians. Production depends on quality controls, reliable utilities, and distribution. Investors also need clear administrative procedures so they can plan ahead.
Zulfa illustrates the kinds of business needs those initiatives could help address.
From Talks to Business
Libya and France already have a platform for closer commercial ties. Earlier this year, Libya’s National Development Agency and Business France organized a construction and development forum in Paris, where companies discussed projects and potential partnerships.
Food manufacturing is another area worth exploring. Libyan companies may need processing equipment, laboratory services, maintenance support, or technical training. Matching those needs with suitable international suppliers would give broader economic cooperation a specific commercial purpose.
Gadalla’s role in Zulfa shows how established Libyan investors can help build such relationships. Investment in domestic production creates a need for continued cooperation, from installing equipment and training staff to maintaining the machinery once the plant is running.
Smaller businesses could benefit as well. A working food plant creates demand for transportation, warehousing, maintenance, and distribution services. Local supplier relationships would allow more Libyan companies to participate in that activity.
Bringing the Plant into Production
Zulfa’s next milestone is getting production running. An October update on Gadalla’s website described preparations for the systems needed to operate the factory, offering an indication of the practical work still under way.
On the policy side, The Libya Observer reported that the ministry is preparing an electronic unified economic identification number system to improve data management and streamline business procedures. If implemented well, it could make dealing with the administration clearer and quicker for companies.
Training programs could also work directly with manufacturers to prepare technicians and production workers for new openings. Future business exchanges with France could focus on those specific requirements, bringing prospective partners together around projects with an established commercial purpose.
Zulfa gives Libya’s diversification discussion a concrete example: a plant intended to process and package everyday products inside the country. Gadalla and his partners are building that capacity in Benghazi. But expanding such investment across the economy will require more than international partnerships. Access to finance, skilled workers, reliable infrastructure, and clearer administration will determine how far Libya can move beyond oil.
