Libya’s $1 Million Grant Backs More Finance, Skills and Support for Entrepreneurs

The project will train 200 entrepreneurs in business planning, financial literacy, project management, pricing and marketing, with women making up 40% of participants and young people 50%.

The African Development Bank Group has approved a $1 million grant to strengthen entrepreneurship in Libya, with a focus on helping micro, small and medium-sized enterprises access financing and business support. Funded through the Bank's Middle-Income Country Technical Assistance Fund, the project places particular emphasis on women and young people. Libya's National Economic and Social Development Board will lead implementation on behalf of the state, working with Expertise France.

The project will train 200 entrepreneurs in business planning, financial literacy, project management, pricing and marketing, with women making up 40% of participants and young people 50%. It will also train 50 banking professionals in Islamic finance and lending to small businesses, working with at least four financial institutions and MSME service providers. The program includes designing microfinance products to better suit the needs of women and young entrepreneurs.

The grant responds to barriers that include limited financing options, gaps in business skills, fragmented support services and weak coordination among institutions. The project will support Libya's efforts to diversify beyond oil and gas and expand employment and business opportunities. It builds on the African Development Bank Group's existing youth entrepreneurship work and analysis of private sector development in fragile contexts.

Business skills and tailored financing

African Development Bank Deputy Director General for North Africa and Country Manager for Libya Malinne Blomberg said entrepreneurs need practical skills, financial services that fit their needs and institutions that can support business growth. The project brings those priorities together to expand opportunities for women and young people to build viable enterprises. The Bank says a stronger entrepreneurial base can contribute to a more diversified economy.

The planned microfinance products are intended to widen access to financing for groups who may not be well served by existing offers. Training banking professionals in Islamic finance and MSME lending is part of the effort to strengthen the institutions that provide those services. The work with financial institutions and business support providers will connect entrepreneurs with more of the resources they need to operate and grow.

Stronger institutions and better information

The project will help update and validate Libya's Private Sector Development Roadmap and Action Plan, while improving coordination among institutions that support MSMEs. At least five national entities will receive help to strengthen monitoring and reporting and to integrate gender and youth priorities into their work. These measures are intended to improve the institutional environment for enterprise growth.

The Libya Credit Information Center will receive staff training and system upgrades to improve the availability and quality of information used in lending decisions. Better credit information can help financial institutions assess borrowers and make lending decisions. This work complements the project's support for new financing options and stronger business services.

Climate-smart business growth

Climate-smart practices, resource efficiency and green entrepreneurship will be included in capacity-building activities for businesses. Financial institutions will also receive support to include climate considerations in their financing practices. The project aligns with the African Development Bank's Libya Country Brief 2025–2028, which focuses on enabling reconstruction and economic diversification through stronger governance and institutional capacity.