the Audit Bureau’s report for 2023 revealed large financial losses accumulated in manny companies affiliated with the Libyan Foreign Investment Company, highlighting weak financial performance in various African and European countries.
He also pointed out that the accumulated losses of the “laico” company in Chad amounted to $68 million, equivalent to 84% of the company’s capital. In Uganda, the “Laico” company, which owns the Victoria Hotel, incurred operational losses amounting to $2.038 million.
Laico Company in Tanzania, which owns the Bahri beach Hotel, also recorded losses that accumulated between 2018 and 2022 amounting to $6 million, or 85% of its capital.
The losses were not limited to the “Laico” companies only, as the Tourism and Convention Company (STC) recorded losses amounting to $43 million as an inevitable result of the closure of the “Laico Djerba” hotel in tunisia.
The “Laico” company in Tunisia itself also incurred losses exceeding 50% of its capital, as a result of depreciations and the closure of the aforementioned hotel. The “Laico” company in the Congo recorded successive losses during the past five years amounting to 18.5 million dollars, and in Mali, the company suffered a loss of 11 million euros. And accumulated losses amounting to 45% of its capital in 2022. As for Guinea-Bissau, the company’s losses amounted to $13 million during the previous five years.
The report also indicated that the Sudanese government has withdrawn the land of the “West Gold” project, affiliated with the “laico” company in Sudan, with an area of 70 thousand hectares, with an estimated value of $140 million.
In Libya, the Tatweer Real Estate and Tourism Investment Company recorded accumulated losses amounting to 50 million dinars, compared to revenues amounting to only 337 thousand dinars, and the direct engineering consulting company recorded losses exceeding 105% of its capital.
Source: Audit Bureau report.
What are the main causes behind the financial losses experienced by the Libyan Foreign Investment Company and its affiliates?
Interview: The Impact of Financial Losses in the Libyan Foreign Investment Company – insights from Industry Expert
Time.news Editor (TNE): Thank you for joining us today. The recent Audit Bureau report has unveiled alarming financial losses across various companies affiliated wiht the Libyan Foreign Investment Company. could you please summarize the key findings of this report?
Expert (E): absolutely, thank you for having me. The Audit Bureau’s 2023 report revealed important financial setbacks for the Libyan Foreign investment Company, with cumulative losses primarily impacting affiliated companies across Africa and Europe. Notable losses include the “Laico” company in Chad, amounting to $68 million—an amazing 84% of its capital. In Uganda,operational losses for the Victoria Hotel reached $2.038 million, showcasing a distressing trend.
TNE: Those figures are quiet concerning. Are these losses unique to the “Laico” companies, or are they indicative of a broader issue in the region?
E: It appears the losses extend beyond the “Laico” umbrella. The Tourism and Convention company (STC) reported a staggering $43 million loss,notably due to the closure of the “Laico djerba” hotel in Tunisia.Similar patterns emerge across the continent, with losses in Tanzania, the Congo, Mali, and Guinea-Bissau. The situation illustrates systemic challenges facing the hospitality and tourism sectors,further exacerbated by external economic factors.
TNE: The report mentions the Sudanese government withdrawing land from one of the ”Laico” projects. Can you elaborate on the implications of such actions?
E: The withdrawal of the West Gold project land in Sudan, valued at around $140 million, is a significant loss. It not only reflects governmental instability but also has broader implications for investor confidence. This kind of government action can deter future investment and worsen the existing operational challenges for companies trying to establish a foothold in these markets.
TNE: With such bleak financial predictions, what advice would you offer companies operating in these environments?
E: Companies must prioritize robust risk management strategies. This includes diversifying investments to mitigate exposure to political and economic instability. Additionally, engaging with local stakeholders and understanding the regulatory landscape is vital. It’s crucial to adapt operational strategies to be more resilient—whether through cost management or exploring alternative markets with more favorable conditions.
TNE: Looking forward, what potential steps can the Libyan foreign Investment Company and its affiliates take to recover from these losses?
E: Recovery will likely demand a multi-faceted approach.First, they’ll need to conduct thorough audits to identify loss drivers and restructure operations accordingly. Investment in digital transformation and enhancing service offerings could also attract businesses and tourists. Lastly, building strategic partnerships could provide much-needed resources and market insights, aiding long-term recovery.
TNE: It’s clear these companies face monumental challenges. How do you perceive the future for tourism and investment in Libya and other affected regions?
E: the road to recovery will be challenging, but not impossible. Stability in governance and economic policies will be crucial for rehabilitation. If companies can address their operational inefficiencies and adopt adaptive management practices,there remains potential for a resurgence in investment and tourism. Though, this will take time and concerted efforts from all stakeholders involved.
TNE: thank you for sharing your insights today. It’s imperative for companies in these sectors to heed this advice as they navigate through these turbulent times.
E: Thank you for the discussion. It is indeed vital for industry players to stay informed and proactive as they work towards recovery and sustainable growth.