Libya’s Planning Minister prioritises digitalization of banking sector
Libya’s Planning Minister Mohamed Al-Zidani has prioritised the importance of digital transformation in the country’s banking sector to drive investment confidence, according to the Moroccan government-friendly outlet North Africa Post on September 2nd.
At the Third Forum of Libyan Banks, held on September 1st, Al-Zidani remarked that digitalisation is the product of collaboration between banks, regulators and national expertise.
He went on to stress that modern digital systems will accelerate both domestic and international transactions, bolster financial stability and provide greater assurance to foreign investors.
Libya’s banking sector has been a key source of discussion recently, due to ongoing instability. Parliament speakers met with the Central Bank on August 20th to discuss urgent economic reforms to modernise the sector.
There have been increased proposals from the Central Bank to ease current bottlenecks within the system through expansion of electronic payments, helping modernise Libya’s financial frameworks.
Al-Zidani has described the digital shift as the dawn of a new era of smart banking services in Libya, emphasising that the reforms would simplify transactions, augment public trust in financial institutions, and serve as a foundation for reconstruction and development.
Economic growth in Libya is forecast to be strong over the coming year, with the Arab Monetary Fund forecasting a 14.3% growth rate, fuelled by a strengthening hydrocarbons sector and crude oil production.
However, Libya wants to diversify their economy to reduce reliance on the oil sector to boost state revenues, and modernising their banking sector to encourage both domestic stability and investor confidence is a key strategic route for them.
Major international oil companies are gradually returning to Libya and setting up offices in Tripoli to help revitalize the sector and signifying the path for renewed international investment in the country.
Al-Zidani hopes that similar progression in the banking sector will facilitate more transparency and attract more international companies to Libya.
North Africa Post, Maghrebi.org
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