Reuters | Dec 03, 2012 | JORDAN TIMES
LONDON/TRIPOLI — Libya is having to pay extra for food imports and traders say some foreign firms are diverting shipments elsewhere due to fears — dismissed as unfounded by Tripoli — that growing disarray in the country could delay payments.
The North African state, much of which is desert, is a big food buyer and has stepped up purchases of staples including wheat and sugar since the end of fighting last year that toppled Muammar Qadhafi.
Tripoli shop shelves are now full of foreign produce. But while international traders had viewed oil producing Libya as a lucrative market, some now say they are backing off from trade.
“Libya has a huge amount of oil wealth, but its chaotic administration and fears about non-payment are still giving it a bad reputation in international trade,” a European grain trader indicated.