
Cement supply is the backbone of Libya's reconstruction
Libya's cement industry stands at a critical crossroads. As demand rises—driven by reconstruction efforts, housing expansion, and infrastructure projects—the country's reliance on imports and the chronic underperformance of local factories present both a national challenge and a strategic opportunity.
Despite having vast reserves of raw materials—enough to sustain production for at least the next 50 years—Libya's cement output remains far below its potential. Current data reveals that the nation's cement plants are operating at just 58% of their design capacity. Of ten available production lines, only four are active, despite a total design capacity of 10 million tonnes annually. The result: a growing dependence on imports from Egypt, Turkey, and Tunisia.
In 2020, for example, Libya imported 2.2 million tonnes of cement to meet domestic demand. Local factories produced only 3.1 million tonnes, falling short of the estimated market demand of 5.3 million tonnes. By 2024, demand had surged to approximately 7 million tonnes—yet supply continued to lag significantly behind.
A clear illustration of this gap is the Al-Burj plant in Zliten, one of Libya's largest cement factories. It currently produces around 1.5 million tonnes annually—less than half of what the country needs. This supply shortfall has pushed prices sharply upwards. By mid-2024, the cost of a quintal rose to approximately 90 Libyan dinars (900 dinars per tonne), representing a 54% increase compared to the previous year.
Yet the issue goes beyond underproduction. A combination of factors—security instability, speculative pricing, and restrictions on the movement of heavy trucks along major roads under the pretext of protecting infrastructure—has disrupted both local distribution and land-based imports. These logistical challenges have further inflated prices, with transport costs alone pushing cement prices from 17.5 to 25 dinars in just a few months.
This widening gap between supply and demand is unsustainable. Continued reliance on imports not only places strain on Libya's foreign currency reserves but also leaves the domestic market exposed to unpredictable price fluctuations. Without strategic intervention, any meaningful progress in infrastructure and housing development will remain out of reach.
There are, however, signs of positive movement. The Libya Africa Investment Portfolio (LAIP) has recognised the urgency of the crisis and prioritised the cement sector within its local investment strategy. As part of broader efforts to support national economic development, LAIP is investing in projects aimed at closing the supply-demand gap and restoring market stability.
At the forefront of these efforts is the revival of the Misrata Cement Plant—a major strategic project that has remained dormant since 2012. Now, with comprehensive technical and strategic planning in place, LAIP is working to restart operations. The plant is expected to produce 2 million tonnes annually in its first phase, increasing to 4 million tonnes in the second phase. The project is being implemented in partnership with Sinoma–Wuhan, a leading Chinese construction firm.
Experts believe the Misrata project could serve as a catalyst for wider sector reform, with the potential to reduce housing inflation, support major construction and infrastructure initiatives, and generate employment opportunities for young Libyans. Ultimately, the goal is to increase national cement output to 10 million tonnes annually. According to research by technical committees and specialised centres, this would reduce production costs, lessen reliance on imports, and help stabilise prices across the domestic market.
For LAIP, the project has broader strategic objectives: contributing to economic diversification, strengthening Libya's industrial base, and enhancing the country's long-term resilience.
Libya's cement crisis is not merely a supply chain issue—it is a test of economic sovereignty. Reviving this vital sector will require more than financial investment. It demands coordinated policy, regulatory reform, and a secure environment for industrial growth. But the potential rewards—economic resilience, infrastructure development, and national self-sufficiency—are too important to ignore.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Libyan Express
a day ago
- Libyan Express
BP to reopen Tripoli office in Q4 2025
BP enters MoU with Libya's NOC for Sarir and Messla field exploration. Photo via BP BP is set to reopen its Tripoli office in the final quarter of 2025 as part of a broader effort to relaunch its operations in Libya, the country's state-owned National Oil Corporation (NOC) announced this week. The move signals renewed international confidence in Libya's oil and gas sector after a prolonged period of political instability and operational disruption. The decision follows the signing of a memorandum of understanding (MoU) between BP and NOC in London, which outlines plans to explore the redevelopment of two of Libya's most prolific oilfields—Sarir and Messla—both located in the Sirte Basin. Discovered in the 1960s and 70s, the fields are considered strategic assets in Libya's upstream portfolio and are now the focus of new technical and commercial studies led by BP. The MoU also covers the evaluation of unconventional oil and gas resources, as well as a broader review of nearby exploration zones. BP will work closely with NOC to access and analyse technical data in order to assess future development opportunities. These studies could pave the way for BP's return to large-scale investment and signal a major expansion of its interests in the country. Since signing an Exploration and Production Sharing Agreement (EPSA) in 2007, BP's activity in Libya has faced repeated setbacks, including a force majeure declaration that stalled its operations for years. That status was lifted in 2023, when BP and its partner Eni resumed exploration in onshore areas, marking a cautious re-entry into the Libyan market. 'This agreement reflects our strong interest in deepening our partnership with NOC and supporting the future of Libya's energy sector,' said William Lin, BP's executive vice president for gas and low carbon energy. 'We hope to apply BP's experience from redeveloping and managing giant oil fields around the world to help optimise the performance of these world-class assets. We look forward to conducting thorough studies, working closely with NOC, to evaluate the resource potential of this promising region.' NOC chairman Masoud Suleiman Masoud hailed BP's return as a key milestone in Libya's efforts to restore international investment flows and strengthen technical capabilities in the energy sector. Speaking at the MoU signing ceremony in London, Masoud emphasised the importance of cooperation in areas such as skills development, training, and long-term capacity building. 'We see BP's re-engagement not only as an economic partnership but as a transfer of knowledge, technology, and global best practices that can help transform Libya's oil sector into a more competitive and sustainable industry,' he said. The agreement with BP comes as Libya intensifies efforts to stabilise its oil sector and attract global energy majors back to the country. With production currently fluctuating around 1.2 million barrels per day, Libyan authorities are aiming to push that figure to 2 million over the next few years—an ambition that hinges on foreign capital, modern infrastructure, and technical expertise. In a parallel development, NOC also signed an agreement with Shell to carry out feasibility studies for the al-Atshan field and other oil sites exclusively under NOC ownership. The deal excludes any areas with existing third-party rights and reinforces NOC's strategy of selectively partnering with global firms to maximise value from its untapped reserves.


Libyan Express
03-07-2025
- Libyan Express
Cement supply is the backbone of Libya's reconstruction
Cement supply is the backbone of Libya's reconstruction Libya's cement industry stands at a critical crossroads. As demand rises—driven by reconstruction efforts, housing expansion, and infrastructure projects—the country's reliance on imports and the chronic underperformance of local factories present both a national challenge and a strategic opportunity. Despite having vast reserves of raw materials—enough to sustain production for at least the next 50 years—Libya's cement output remains far below its potential. Current data reveals that the nation's cement plants are operating at just 58% of their design capacity. Of ten available production lines, only four are active, despite a total design capacity of 10 million tonnes annually. The result: a growing dependence on imports from Egypt, Turkey, and Tunisia. In 2020, for example, Libya imported 2.2 million tonnes of cement to meet domestic demand. Local factories produced only 3.1 million tonnes, falling short of the estimated market demand of 5.3 million tonnes. By 2024, demand had surged to approximately 7 million tonnes—yet supply continued to lag significantly behind. A clear illustration of this gap is the Al-Burj plant in Zliten, one of Libya's largest cement factories. It currently produces around 1.5 million tonnes annually—less than half of what the country needs. This supply shortfall has pushed prices sharply upwards. By mid-2024, the cost of a quintal rose to approximately 90 Libyan dinars (900 dinars per tonne), representing a 54% increase compared to the previous year. Yet the issue goes beyond underproduction. A combination of factors—security instability, speculative pricing, and restrictions on the movement of heavy trucks along major roads under the pretext of protecting infrastructure—has disrupted both local distribution and land-based imports. These logistical challenges have further inflated prices, with transport costs alone pushing cement prices from 17.5 to 25 dinars in just a few months. This widening gap between supply and demand is unsustainable. Continued reliance on imports not only places strain on Libya's foreign currency reserves but also leaves the domestic market exposed to unpredictable price fluctuations. Without strategic intervention, any meaningful progress in infrastructure and housing development will remain out of reach. There are, however, signs of positive movement. The Libya Africa Investment Portfolio (LAIP) has recognised the urgency of the crisis and prioritised the cement sector within its local investment strategy. As part of broader efforts to support national economic development, LAIP is investing in projects aimed at closing the supply-demand gap and restoring market stability. At the forefront of these efforts is the revival of the Misrata Cement Plant—a major strategic project that has remained dormant since 2012. Now, with comprehensive technical and strategic planning in place, LAIP is working to restart operations. The plant is expected to produce 2 million tonnes annually in its first phase, increasing to 4 million tonnes in the second phase. The project is being implemented in partnership with Sinoma–Wuhan, a leading Chinese construction firm. Experts believe the Misrata project could serve as a catalyst for wider sector reform, with the potential to reduce housing inflation, support major construction and infrastructure initiatives, and generate employment opportunities for young Libyans. Ultimately, the goal is to increase national cement output to 10 million tonnes annually. According to research by technical committees and specialised centres, this would reduce production costs, lessen reliance on imports, and help stabilise prices across the domestic market. For LAIP, the project has broader strategic objectives: contributing to economic diversification, strengthening Libya's industrial base, and enhancing the country's long-term resilience. Libya's cement crisis is not merely a supply chain issue—it is a test of economic sovereignty. Reviving this vital sector will require more than financial investment. It demands coordinated policy, regulatory reform, and a secure environment for industrial growth. But the potential rewards—economic resilience, infrastructure development, and national self-sufficiency—are too important to ignore.


Libyan Express
03-07-2025
- Libyan Express
NOC chairman announces Libya's first oil bidding round since 2007
Major oil companies vie for new Libyan onshore and offshore blocks. Photo via Reuters The Chairman of Libya's National Oil Corporation (NOC), Masoud Suleiman, has confirmed that more than 37 international oil companies have expressed keen interest in the forthcoming oil licensing round scheduled for November, including major players such as the US-based Chevron, France's Total, and Italy's Eni. In an interview with Bloomberg published on Wednesday, Suleiman said: 'Virtually all international oil and gas firms are competing in the licensing round, which comprises 22 new onshore and offshore blocks.' This will be Libya's first licensing round since 2007. Suleiman disclosed further details, explaining that successful companies will be responsible for the costs of seismic surveys and other exploratory activities. These costs may be reimbursed should commercially viable quantities of hydrocarbons be discovered. He added that the NOC is awaiting approval of a $3 billion development budget aimed at increasing oil production to 1.6 million barrels per day within approximately one year. According to Suleiman, this budget will be allocated to develop companies such as Akakus, operator of the Sharara oil field, as well as other state-owned enterprises. He also noted that development of the North Jalu field would enable Waha Oil Company to raise its daily output by an additional 100,000 barrels. In a related development, Suleiman pointed out that the government has earmarked 20 billion Libyan dinars for fuel imports this year. However, he emphasised that this amount will not suffice to meet total domestic demand, which costs around $600 million per month. Consequently, the NOC may seek further funding. The views expressed in Op-Ed pieces are those of the author and do not purport to reflect the opinions or views of Libyan Express. How to submit an Op-Ed: Libyan Express accepts opinion articles on a wide range of topics. Submissions may be sent to oped@ Please include 'Op-Ed' in the subject line.