Tripoli – The government of Libya is establishing a holding company to take care of investment that the country intends to make in Latin America, particularly in Brazil. The head of the Americas Department at the Libyan Ministry of Foreign Relations, Mohamed Matri, who is a former ambassador to the Brazilian capital, Brasília, said this Tuesday (30th), in Tripoli, that the company should be established by the end of the year.
The company will have a capital of US$ 500 million, he said. Such is the figure that Libya intends to invest in Latin America, as announced by the vice-prime minister of the country, Imbarek Ashamikh, during a visit to Brazil last February. “Brazil has strong ties with Africa and wants to help [the continent]. We are also looking for ways to cooperate and reap the benefits together,” said Matri.
According to him, just as Brazil may convey its successful experiences to Africa and Libya, as well as make public and private investment, the Arab country may also do business in Brazil. The main field of interest is the agribusiness industry.
“The processes for Libya to invest abroad are well underway,” said the Brazilian ambassador to Tripoli, Luciano Ozório Rosa. “The main area of interest in Brazil is agribusiness, but they are diversifying their investment portfolio and seeking safe, long-term opportunities,” he added.
Matri underscored that Libya aims to do business in Latin America by means of joint ventures, because, in addition to fertile land, it needs know how in order to operate in the agriculture and livestock sector. One of the goals is to produce foodstuffs abroad, so as to cater to the Libyan market itself.
According to him, the country needs to import approximately 80% of the food it consumes and, besides, land there is too costly. Matri stated that the price of one hectare of land in the vicinities of Tripoli may be as high as US$ 200,000. A significant share of the Libyan territory is occupied by the Sahara Desert, and the weather is very dry.
According to Matri, the new holding company will be a subsidiary of the Libyan sovereign fund, established around two years ago with a capital of US$ 60 billion.
Currently in a visit to the country, the Brazilian president, Luiz Inácio Lula da Silva, declared that Brazil is interested in Libyan investment. “If Libya is interested in our knowledge, then it is very important for them to invest in Brazil to produce what they need to produce,” he said.
According to Lula, trade between Brazil and Libya went from US$ 36 million, in the beginning of his first term in office, in 2003, to US$ 1.7 billion last year. “The potential for growth is very high,” he stated.
He also claimed that he expects the Libyan leader, Muammar Kadafi, to visit Brazil still this year, on the occasion of his trip to Venezuela, to attend the 2nd Africa- South America Summit.
*Translated by Gabriel Pomerancblum
