The Libya Africa Investment Portfolio (LAIP) is prioritising the Libyan cement sector growth within its local investment strategy. As part of broader efforts to support national economic development, LAIP is investing in new projects to reduce the supply-demand gap.
The revival of the Misrata Cement plant is a catalyst project that has remained dormant since 2012. Now, LAIP is working to restart operations. The plant is expected to produce 2Mta in its first phase, increasing to 4Mta 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 encourage 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 10Mta. 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," reports Libyan Express.
Despite Libya's vast reserves of raw materials, which are enough to sustain production for at least the next 50 years, the country's cement output is restricted. Local analysis estimates that domestic cement plants are operating at just 58 per cent of their design capacity, according to Libyan Express. Of 10 available production lines, only four are active, despite a total design capacity of 10Mta. Therefore, the country is reliant on imports from Egypt, Turkey and Tunisia.
The Al-Burj plant in Zliten, one of Libya’s largest cement factories, currently produces around 1.5Mta, which is less than half of what the country needs. The supply shortfall has increased prices. By mid-2024, the cost of a 100kg bag rose to approximately LYD90 (US$16.70) or LYD900/t, representing a 54 per cent increase compared to the previous year.
Added to the market complexity are factors of security instability, speculative pricing and restrictions on the movement of heavy trucks along major roads under the pretext of protecting infrastructure. These factors have disrupted both local distribution and land-based imports, and further inflate prices, with transport costs alone pushing cement prices from LYD17.5 to LYD25 in just a few months.
