ESDF considering US$ 5 m investment loan to its Enmaa Engineering Industries subsidiary
By Sami Zaptia.
London, 28 June 2020:
The ESDF revealed Thursday that it is considering granting a US$ 5 million investment loan to its subsidiary, the Enmaa Engineering Industries Company. The revelation came during a field visit to Enmaa Engineering Industries by the management of its parent holding company, ESDF.
Enmaa Engineering Industries manufactures a number of large engineering and civil materials such as lampposts and electricity towers, which Libya has had to import from abroad due to the interruption of work at these factories due to lack of raw materials and lack of investment.
The ESDF said that this move comes as part of its efforts to activate the activities of its subsidiaries, strengthen local production, and stimulate industry and the national economy.
At the end of the field tour, the parties held a meeting during which they discussed a range of important relevant topics, most of which related to the mechanism of activating all industries in the company, and concluding contracts with a group of public bodies to support local production.
It must be kept in mind, however, that the Libyan public jury is still out on the ESDF sprawling group of companies. The loan announcement has attracted much public debate especially as the ESDF has been embroiled in corruption allegations by the Audit Bureau.
The state-created group of companies lack transparency and accountability and their efficiency is yet to be proven. The instability and chaos of Libya since the 2011 revolution has meant that ESDF companies have yet to be put under the microscope to justify their continued existence.
In view of the fact that Libya intends to pursue a private sector-led competitive free-market economy, ESDF companies are seen as distorters of the free market, occupying space that should be vacated by the state in favour of the private sector.