Egypt-Libya economic cooperation starts with 2 million workers

Egypt kicks off economic cooperation with Libya with plans to send 2 million Egyptian workers there upon the request of the National Transitional Council (NTC), a step that would benefit both countries.

Ahmed El-Borai, Egypt’s Minister of Manpower, has agreed to send the workers to help rebuild Libya, Egyptian independent daily Al-Shorouk reported Sunday. This comes as part of several plans of economic cooperation across sectors.

Before Libya’s revolution about 2 million Egyptians resided and worked in the country. During months of political upheaval that saw intense fighting between rebels and pro-Qaddafi forces, roughly 500,000 Egyptians went back home.

After the nation’s security was threatened when violence began between rebels and pro-Gaddafi forces, about 500,000 Egyptians returned to Egypt.

But, according to Alaa Ezz, secretary general of the Federation of Egyptian Chambers, 1.5 million remained.

With an 11.4 percent unemployment rate in Egypt that will continue to remain high, Ezz pointed out that the move would be a step forward for both nations, especially during these bleak economic times.

The offer also comes as Libya is preparing to rebuild after six months of a fierce civil war.

Magda Kandil, executive director for the Egyptian Center for Economic Studies, labels the move as a “win-win” situation.

“We’ve always said the situation in Libya was not helping Egypt’s already suffering economy and we were concerned that lingering instability could continue taking its toll on Egypt’s economy,” she explained.

“Oil prices were soaring, nearly two millions who lived there were suffering and many others had to return to Egypt,” she added.

The development in Libya would possibly mean more foreign recedes and remittances coming into Egypt once again at a time when foreign currency reserves are dropping due to a decline in tourism and foreign direct investments, she noted.

“Now with the situation in Libya starting to stabilize it will help create jobs for Egyptians who are and will be needed there,” she added.

“It will also help provide foreign recedes… when Egyptians work there they often send money to family members who are still here,” she said.

Proximity and language could help maximize the benefits.

“You have to benefit from the proximity of both countries, especially when it comes to this next phase of construction in Libya,” Ezz said, “Egyptian skilled and unskilled labor is also cheaper … and Libya is not a multilingual country, this is also another advantage Egyptian workers have.”

Construction is not the only asset Egyptians can provide in Libya.

“You can’t have teachers, doctors, or nurses for example who do not speak Arabic in a country like Libya. Post-revolt Egyptian workers skilled and unskilled were needed and are still needed not just in Libya but all over the Arab world,” Ezz explained.

Throughout the fighting, Egyptians were also helping their Libyan neighbors by sending food, medical supplies, and other necessities. Many Egyptians took caravans filled with food and medicine and travelled to the Western neighbor through the easily accessible Salloum border crossing.

Ezz added that Egyptian labor has always been indispensable to Libya.

“Before both revolutions [in Egypt and Libya], there was a huge business collaboration between Libya and Egypt. Egypt has always had a huge advantage especially in Libya and if utilized properly it could have more,” he explained.

Economic cooperation in the upcoming phase isn’t limited to labor and remittances.