SLEIDSE - SUPPORT TO LIBYA FOR ECONOMIC INTEGRATION, DIVERSIFICATION AND SUSTAINABLE EMPLOYMENT 26/09/2017
SLEIDSE is a European Union programme of 7.8 million aimed at promoting entrepreneurship and supporting the development of a diversified private sector in Libya. It has also the ambition to provide small businesses in Libya with local and online tailor made development services and a better access to finance. Wait! You have said Libya? The country where several rival governments are competing over the control of the country? A country in which you account 5000+ militias? You gotta be kidding me. PSD is the least of their concern!
Why should we put all our efforts in PSD in Libya (or at least some)? A/ because it is a good way to be invited to Brussels? B/ Because EF loves challenges? C/ Because developping small and medium businesses is a powerful tool to offer economic opportunities for least advangted people, espercially in war affected countries? D/ Because it provides libyan youth with the tool to (re)build their institutions and enable new way of thinking?
Quick overview of Libya - 2011: Arab spring leading to the overthrow of Gaddafi, after 42 of strong centralized, subsidized economy - 2011 2014: boom of the private sector - 2014 2016: Security situation deteriorating, shortage on the oil production, cut in public jobs, one of the highest unemployment rate for young Libyans under the age of 30. - 2017: Stabilization of the security situation, political issue on sight - 90% of GDP in generated by oil export Economic key figures: - 7 professionals over 10 have a part time or full time in the public sector (unusual) - 9 Libyans over 10 are getting a monthly subsidies from the STATE (that s even more unusual) - In Libya, you do not pay electricity, water, health expenses, taxes (customs and levies are among the lowest in the world). I want to move there.
Characteristics of the libyan Economy A unique environment featuring 3 main aspects: - A 42 years of over centralized communisim(ich) economy. The private sector accounts only for 6 to 8% of the GDP. - An over oil dependency (90% of the state revenue 70% of the GBP) - A conflict affected country
So what we do in this context? We rely on the fantastic resilience of the Libyan people and on the youth to deliver 3 types of activities: 1/ dissemination of the entrepreneurship culture 2/ Improving the business services delivery 3/Unlocking access to finance for SMES
1- Disseminating the entrepreneurship culture SLEIDSE programme runs campaings and events to highlight the positive features of entrepreneurship in Libya: Business plan competitions Monthly boot camps Mentoring videos showcasing the stories of successful Libyan entrepreneurs #Mysuccess Animation videos to Simplify the aims of SLEIDSE Managing a social media community of over 70K+ people Monthly Newsletter Live sessions with mentors and international experts
2- Improving business service delivery SLEIDSE programme works closely with Libyan authorities in order to strengthen their capacities to develop state-of-the-art services to SMEs in line with international standards. 1. Strengthening the National SME agency by running trainings, study tours and various scalingup activities 2. Implementing incubation programmes within universities 3. Upgrading the services delivered by the CoC 4. Setting up an online business school To have a nation wide coverage To offer support to remote locations To support SMEs and Entrepreneurs developping their business activities
3- IMPROVE ACCESS TO FINANCE According to the Global Competitiveness Index 2014 15, Libya is the worst performer globally on financial market development and the performance is weak on all indicators, including; the availability and affordability of financial services; ease of access to loans; financing through the local equity market; venture capital availability; soundness of banks; regulation of securities exchanges; and legal rights index. As such, SLEIDSE team aims to develop a credit Guarantee scheme and to create a credit Mediation unit in strong partnership with Libyan institutions & to develop a micro-credit product. Credit Guarantee Scheme SLEIDSE will deliver a comprehensive technical assistant to the Libyan National Guarantee Fund. This includes restructuring the NGF, set new process and agreements, capacity building for both the NGF and for the banks to be involved in the project, etc. Credit Mediation The SLEIDSE team, along with BPI France, believe that this type of services, provided by a public agency, often operating under the umbrella of the Ministry of Economy, could have a substantial impact on the Libyan economy, playing a significant role in smoothing and institutionalizing access to credit along with improving the relationship between banks and SMEs. Micro-credit Product The SLEIDSE team, in partner with ADIE France have carried a market study assessing the potential of distributing microcredits in Libya. The study showed positive results, thus, Expertise France is currently in the process of raising funds for the project to be implemented in Libya.
HOW DO WE OPERATE? A team of fantastic young and not so young talented Libyan an international experts An office in Tunis Frequent trips on the ground to put oil in the engine A very supportive and understandable donor! Staying away from politics (as much as possible Great sense of humor Non conventional approach Transparency
CONSTRAINTS WE FACE AND CHALLENGES? Very little exposure of the libyan counterparts to international work practices Very weak public institutions (lack of motivation, over centralized decisions making process, no results oriented mindset) Competition between public institutions Little knowledge from the public institutions on SMEs and Entrepreneurs Remote intervention Logistics issues
FIRST OUTCOMES A business plan contest organized (1000 applicants, 100 entrepreneurs trained, 10 finalists, 3 prize money) A large community on facebook receive our training and peer to peer training materials 3 Mentoring videos of libyan entrepreneurs (viewed over 500 000 times in total) 20 executive from various libyans BSOs trained to accompany entrepreneurs in Libya Launching of an online business school Reactivation of the National Guarantee Fund that allowed 6 banks to invest 120 million Libyan dinars for SMEs in 2018 (10 times more than in 2016). Setting up of a credit mediation scheme In the process of setting up of a micro credit institution
YOU ARE IN LOVE WITH OUR WORK? FIND OUT MORE ON www.sleidse.org www.facebook.com/sleidse www.expertisefrance.fr You can also get in contact with us: Alexandre.chatillon-mounier@expertisefrance.fr