Taipei, April 19 (CNA) Libya is hoping for direct investment from Taiwan's small- and medium-sized enterprises (SMEs) as the North African country seeks to become the region's technology hub, visiting Libyan officials said at a seminar Monday.
Officials from the Libyan Economic Development Board (EDB) briefed dozens of Taiwanese businessmen on potential trade and investment opportunities in Libya, which has maintained warm relations with Taiwan in recent years despite the lack of official bilateral diplomatic ties.
EDB Director-General Mahmoud Gebril said the Libyan government launched a series of ambitious programs in 2007, many of which were designed by the EDB, to develop the country's modern infrastructure and "soft power," including education and technology.
Taiwan's SMEs, especially in the information and communication technology (ICT) sector, are welcome to invest in Libya and will play an important role in its national development if they do, Gebril said.
Mike Hung, chairman of the Taiwan-Africa Industry Development Association, said trade with Libya is more viable now that the United Nations (U.N.) has lifted its trade sanctions and bans on aircraft movements, oil exports and arm sales that were originally imposed over Libya's suspected terror links.
But he noted that Taiwanese businesses never stopped doing business with Tripoli during the time sanctions were in force because Libyan businessmen enjoyed good reputations.
Gebril, who insisted that the trip was private because of the sensitivity of Taiwan-China-Libya relations, encouraged Taiwan's SMEs to take advantage of the country's strategic geographic location, connecting the European Union (EU) , Africa and the Arab world and serving as a gateway to the African market.
He added that Tripoli would provide foreign investors with a wide range of incentives, such as tax exemptions in a special economic zone, to create a win-win situation for both parties.
Meanwhile, Taiwan is also hoping to strengthen its exchanges with Libya. Bilateral trade volume between the two countries grew by 2.7 percent last year, one of Taiwan's few trade relationships to show positive growth during the global economic slump, said Chang Shih-chang, Europe and Africa Section manager of the Taiwan External Trade Development Council (TAITRA), Taiwan's trade promotion agency.
In May 2006, then-Taiwan president Chen Shui-bian made a surprise visit to Tripoli, where he was greeted by Libyan leader Muammar Al-Gaddafi. Saif Gaddafi, son of the leader, reportedly visited Taiwan prior to Chen's meeting with his father, who has ruled the country since 1969. The visit was dubbed as a "diplomatic breakthrough" by the Chen administration.
In addition to the ICT sector, Taiwan SMEs which specialize in the water purification, solar energy, machinery, infrastructure, hotel, and petrochemical sectors are also encouraged to invest, Hung said.
He also suggested that Taiwan's yacht manufacturers could take advantage of Libya's 1,770-kilometer coastline.
Libya has been keen to diversify its economy away from its traditionally heavy reliance on oil exports, Hung said, which is why Libya has announced plans to privatize more than 100 state-owned companies and encourage more foreign direct investment (FDI).
There are dozens of Taiwanese businessmen in Libya at present, Hung said. Taiwan's state-owned petrochemical giant CPC Corp. has just launched an oil exploration project this month after winning tenders on oil exploration rights in southern Libya, he said.
(By Chris Wang) enditem/ls