Libya’s Shadow Economy: Human Trafficking, Arms Dealing, and Financial Crimes Thrive Amid Instability

Amid the chaos and instability in Libya, illicit activities have flourished, with human trafficking, arms dealing, and financial crimes posing significant challenges for the war-torn nation.

Human Rights Challenges: Human Trafficking and Smuggling

In the realm of human rights, Libya continues to grapple with the issue of human trafficking. The practice is deeply entwined with human smuggling.

Migrant exploitation: Labor exploitation, ransoming, and forced prostitution have reportedly decreased, but minors and adults remain lured into mercenary work.
Government complicity: Complicity from government officials has been documented, particularly in the southern regions, where trafficking is also linked to artisanal gold mining.

Libya’s lawless landscape has given rise to thriving human smuggling operations.

Complex networks: More sophisticated networks have emerged, leading to a surge in the number of migrants attempting the perilous journey to Europe.
Abuses against migrants: Migrants and refugees are subjected to violence, extortion, and exploitation, leading to tragic consequences as many lose their lives at sea.

Crimes Against Humanity

Crimes against migrants and refugees in Libya could be classified as crimes against humanity, given the systematic nature and wide scope of the abuses.

Criminal Economy: Arms Trafficking and Extortion

Arms trafficking remains a significant criminal market in Libya, fueling conflicts both within the country and in neighboring nations.

Illicit weapons flow: Despite international arms embargos, illicit weapons continue to flow freely via Libya’s southern and eastern borders.
Global involvement: Domestic and external actors persistently fuel the demand for arms, with neighboring countries, external states, and even dubious institutions involved in transfers.

Extortion and taxing markets continue to provide income for armed groups, who engage in kidnap-for-ransom, hold-ups, and carjackings, targeting both locals and smuggled individuals.

Cyber-Racketeering

Cyber-racketeering has emerged as another lucrative practice, with armed groups attempting to secure damaging information on state officials and using it to blackmail or extort them.

Trade Sector: Counterfeit Goods and IUU Fishing

In the trade sector, counterfeit goods continue to be a significant concern, with Libya serving as both a transshipment point and destination for these items.

Transshipment point: Libya is a key transit country along the ‘Maghreb route’ for illicit cigarettes and other goods.
Economic losses: Significant portions of these goods are then re-exported to Egypt or Southern Europe, contributing to economic losses for the affected regions.

Libya’s environmental concerns also extend to illicit activities, particularly illegal fishing practices.

IUU fishing: Libya’s response to IUU fishing has been criticized as one of the poorest.
Threats to marine diversity: Over-fishing and IUU fishing are threatening marine diversity, placing wild turtle species at risk of extinction.

Natural Resources: Oil, Gas, and Wildlife Trade

The illegal trade of non-renewable resources, particularly oil and gas, is another major problem.

Smuggled fuel: Smuggled fuel is either exported to neighboring countries or sold locally at exorbitant prices, financing poly-criminal groups involved in drug trafficking, banditry, and mercenary services.
Artisanal gold mining: Gold from artisanal mines has been growing, with the revenue supporting organized crime networks.

Drugs Trafficking

Although heroin consumption has decreased in Libya, heroin and cocaine trafficking continues to persist.

Cocaine trafficking: Cocaine is smuggled into Libya via ports in the east and west, and through the country’s southern and western borders.
Cannabis resin market: Libya’s cannabis resin market remains a major source of revenue for criminal networks and armed groups.