The African Development Bank (AfDB) and the Government of Libya have signed a $1 million grant agreement to strengthen Libya’s public financial management (PFM) systems. Announced on November 18, 2024, the initiative is part of the Fund for African Private Sector Assistance (FAPA), a program supported by Japan to foster private sector growth and sustainable economic development across Africa.
The project, titled the “Strengthening Enabling Business Environment through Public Financial Management Support Project” (SEBE-PFM), aims to modernize Libya’s PFM systems. By improving public expenditure management, it seeks to enhance the delivery of critical services, support infrastructure development, and create a business environment conducive to private sector expansion.
Key objectives include digitizing financial management systems, promoting transparency, and enhancing accountability in public spending. The project also targets reforms in public procurement, public-private partnerships (PPPs), and state-owned enterprises (SOEs), which are seen as vital for driving Libya’s private sector development.
“This initiative reflects a strategic collaboration and a concrete investment in Libya’s future,” said Ms. Malinne Blomberg, AfDB’s Deputy Director General for North Africa. The grant is funded by Japan, which has pledged continued cooperation with Libya to strengthen its institutions and foster national stability.
Libya’s Finance Minister, Dr. Khalild Al-Mabrouk, underscored the importance of PFM reform for the country’s growth, while Japan’s Deputy Head of Mission to Libya, Masaki Amadera, highlighted the initiative as a step toward greater prosperity and stability in the region.
Spanning three years (2024–2027), the project will include activities such as IT infrastructure assessments, feasibility studies for data centers, enterprise architecture planning, and readiness evaluations for an Integrated Financial Management and Information System (IFMIS). These efforts aim to modernize Libya’s financial framework, improve public service delivery, and bolster governance.
This collaboration reaffirms the shared commitment of the African Development Bank, the Government of Libya, and Japan to foster economic growth, enhance governance, and support private sector development across Africa. The digitization of public finance is expected to unlock new opportunities, paving the way for a more stable and prosperous Libya.
