Coronavirus Could Boost Exports to Libya

China and Italy, which account for over 25% of Libya's total imports, have come close to losing one of their important markets due to coronavirus. Murtaza Karanfil, Chairman of DEIK Turkey-Libya Business Council, noted that the trade relations between the two countries and Libya have been seriously disrupted due to the pandemic, and stated that Turkey, being only three days' sea distance from Libya, has become the strongest candidate to fill the gap created by China and Italy. Karanfil also noted that China's exports to Libya stand at around 2 billion dollars, saying "Turkey achieved 1.9 billion dollars in exports to Libya in 2019. It is possible to increase this above 3 billion dollars." Murtaza Karanfil, Chairman of the Libya Business Council Board of Directors, noted that the coronavirus pandemic has affected the course of the global economy and evaluated Turkey-Libya, China-Libya and Italy-Libya relations. Stating that Libya's three largest importers are Italy, China and Turkey, Karanfil said, "The share that Italy, China and Turkey individually take from Libya's imports ranges between 12 and 13 percent. The total share of the three countries from Libya's imports is around 39 percent. Turkey's exports to Libya amounted to 1.9 billion dollars as of 2019. China is experiencing a very unfortunate and great tragedy, and now a similar situation has emerged in Italy. We are saddened by this. On the other hand, China is one of the world's largest economies and the situation arising from the pandemic has affected the global economy. Gaps have emerged. Trade relations between Libya and China have come to a standstill. They are looking for a market to fill the gap created. With recent developments, Italy has also dropped out of the equation. Why should we not take a more active role as the trade activities of the two countries with Libya are disrupted and they are seeking to fill the market gap?" he said. Noting that Turkey is three days' sea distance from Libya by sea, Karanfil expressed himself as follows: "Due to coronavirus, Turkey can fill the congestion that has occurred in the transportation channels of China and Italy thanks to its advantageous position. Even if a cure for the virus is found, it will take time for the psychological trauma created all over the world to disappear. China's share in Libya's total imports is around 13 percent. The same goes for Italy... We can certainly turn China's share in both Libya and African countries to our advantage by using the advantages of being three days' sea distance away and managing the process correctly."  

Seven out of every ten people in Libya wear Turkish clothing brands

In statements addressed to Turkish businesspeople, Murtaza Karanfil said that since Libya does not have a developed industrial and production infrastructure, almost all basic necessities can be exported to Libya as well as everything a country might need. Karanfil continued his words as follows: "Today when you go to Libya, you see Turkish clothing brands on seven out of every ten people, in the same way, seven out of every ten homes have Turkish furniture. As a company, we have been working with the Libya and Africa market since 1987. I am the closest witness to the path we have taken as a country. We can do much more and we can create an economic picture that will benefit both nations. Indeed, we view 2020 as a much more promising year. We expect this figure to approach 3 billion dollars with a 50% increase over 2019 in 2020. In January 2020 alone, we achieved 132 million dollars in exports to Libya."

Libya could be Turkey's gateway to Africa

Karanfil also stated that Turkey's geopolitical position's advantages in "cost, transportation convenience and product delivery times" are not sufficiently known. "The logistics cost of products sent from Turkey, which is three days' sea distance from Libya, to Central Africa constitutes one-third of normal costs. Under normal circumstances, products that could reach Central Africa in one and a half months can be delivered to Central Africa within a week via the Turkey-Libya route. In other words, when this route is used, savings are made in both time and fuel" he said. Karanfil noted that Libya could be Turkey's gateway to Central, West and East Africa. He also added that if this is realized, export figures reaching 10 billion dollars could emerge in the medium term.