Maltese entrepreneurs with business interests in Libya are worried as shops in the North African country remain closed for trading, stock is packed away and cash flow problems loom.

Their primary worry and major headache, however, has been to “pull out” their people and, for some, the unfolding human tragedy and safety, whatever the business consequences, remain their focus. Sporadic communication means they may not know exactly where and how their partners and staff are.

But commercial problems also abound, with some businessmen even calling on the government to ease the situation they are expected to face.

Maltese entrepreneurs have interests in some of the most popular international fashion brands in Libya and the situation, as the uprising against Muammar Gaddafi and his defiance escalates, would doubtless have a “major impact on the industry and its appeal to foreign business”.

Commercial activity is down and the Maltese businessmen have no idea when it could resume.

“It is safe to say every business in Libya is on hold, waiting to see what happens and trying not to take drastic decisions that could be regretted,” one Maltese entrepreneur said.

Outlets in Tripoli and Benghazi have been closed since the weekend, when trouble escalated and it was decided not to take any risks. “Things were getting dangerous, curfews were imposed and gunfire could be heard,” the businesses said.

The businessmen are, however, unaware of any damage, even to shops in Benghazi, the cradle of revolt against Col Gaddafi.

“Last night, as people started looting, attempts were made to break into one of the shops, some of which do not have steel shutters,” another Maltese businessman said.

Among the problems was that stock was stuck in ports and containers on the way would not be able to be unloaded when they arrived, he explained, noting that the fashion industry did not wait and clothes had to be sold before missing their slot.

Money was committed and orders placed, the businessmen said, adding that salaries were being paid to staff that was idle. A businessman with a franchise in Libya said everything, including stock, furniture and fittings, was quickly packed under one roof in a safe place over the weekend before it was decided, once the first signs of unrest started, that the Tripoli shops should be closed on Sunday afternoon and staff sent home safely.

Their last employee to arrive in Malta on Tuesday took four hours to reach the airport as opposed to the usual 25 minutes and it was thanks to a Libyan friend, contacted by the Maltese businessman, that he got in.

Works on a third outlet that was meant to start operating at the end of April have been stalled. A second franchise was also scheduled to be opened. Whether these projects would resume depended on the situation, he said.

“We are likely to suffer the additional expenses of returning the stock to Malta and the import duties for unloading and moving it to a warehouse before sending it back and having to foot the export charges,” he continued, auguring the Maltese authorities would lend a hand.

“We have four 40-foot containers on the water and another 10 containing furniture, costing almost €500,000, stuck in the UK, for which we have to pay and which are costing us over €3,000 to keep in storage for 15 days,” he said.

Libya has proven to be fertile ground for Maltese business interests and some had plans for “massive” expansions. But the scenario seems to have changed overnight and they now question whether they would materialise.

Nevertheless, the situation has not dampened the entrepreneurial spirit and, although admittedly in the dark as to how the political scene could pan out, the Maltese are optimistic and “not put off” pursuing their business interests in Libya.

“Our experience of business in Libya is good. The Libyans are brave and strong and we believe it has a bright future,” one businessman said.

“Once this is over, we will definitely return,” said another, while others felt there was no turning back for the country and looked ahead to a “fantastic future” there.

It is now a waiting game for the Maltese businessmen but it is by no means game over.

Outreach initiative

The Finance Ministry and Malta Enterprise are offering an outreach initiative to companies who do business in Libya to take stock of the situation and provide their assistance on commercial, trade and investments.

All companies known to be operating in Libya have been contacted by Malta Enterprise and asked to provide information on commercial matters that may require the government’s assistance.

While Malta Enterprise’s office in Libya has been closed for security reasons, a helpdesk service has been set up and can be contacted on 2542 2020.

Malta Enterprise is also postponing its planned business delegation to Libya, which has been rescheduled to the third week of March.

The Malta Chamber of Commerce, Enterprise and Industry expressed concern at the situation and called for the setting up of a task force “to coordinate efforts, opinions and resources to protect the interest of business and minimise the impact of these momentous developments on our economy”.