INTRODUCTION
In an effort to inform cash-based interventions and better understand market dynamics in Libya, the Joint Market Monitoring Initiative (JMMI) was created by the Libya Cash & Markets Working Group (CMWG) in June 2017. The initiative is led by REACH and supported by the CMWG members. It is funded by the Office of U.S. Foreign Disaster Assistance (OFDA) and the United Nations High Commissioner for Refugees (UNHCR).
Markets in key urban areas across Libya are assessed on a monthly basis. In each location, field teams record prices and availability of basic food and non-food items (NFIs) sold in local shops and markets. This factsheet presents an overview of price ranges and medians for key food items and NFIs in the assessed areas, as well as the costs associated with key elements of the Minimum Expenditure Basket (MEB).
REACH has also conducted analysis highlighting economic vulnerability for at-risk population groups that can be accessed through an interactive dashboard.
METHODOLOGY
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Field staff familiar with the local market conditions identified shops representative of the general price level in their respective locations.
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At least four prices per assessed item were collected within each location. In line with the purpose of the JMMI, only the price of the cheapest available brand was recorded for each item.
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Enumerators were trained on methodology and tools by REACH. Data collection was conducted through the KoBoCollect mobile application.
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Following data collection, REACH compiled and cleaned all partner data, normalising prices, cross-checking outliers and calculating the median cost of the MEB in each assessed market.
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Qualitaive information is also gathered from local sources and economic experts through key informant (KI) interviews.
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REACH has extracted prices on a daily basis from the website, "Open Souq" and conducted KI interviews to better understand the rental market in Libya.
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More details are available in the Methodology section of the Appendix
KEY FINDINGS
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In September 2020, the cost of the overall MEB decreased by 1.6%.The incremental price changes had not reversed the COVID-19/ oil blockade related price spikes, as the MEB is still 21.3% more expensive in September compared to March 2020.
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On the 8th September, protestors in Tunisia blocked the route leading to the Libyan/ Tunisian border for approximately two weeks. The protests erupted due to a COVID-19 related ban on the cross border movement of passengers and small scale trade. The protests have also disrupted formal Libyan land imports of Tunisian agricultural goods and led to shipments being sent by sea. The import disruptions may explain why the largest increases in the food portion of the MEB were found in cities close to the Tunisian border, such as Sabratha (6.9%), Azzawya (5.6%) and Zwara (4.1%).
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After the lifting of the oil blockade, Libya's oil refineries have begun receiving crude oil. At the beginning of October 2020, refineries begun working at full capacity, which may lead to the decrease of fuel prices in the coming weeks. Functioning oil refineries may provide relief for southern and remote western cities that have witnessed the price of fuel tripling from January - April 2020. In September 2020, an 11kg cooking fuel cylinder costed; Ghat - 183 LYD, Ubari - 175 LYD, Sebha - 85 LYD, and Azzintan - 60 LYD, compared to 5 LYD on official markets. The average Libyan household uses two cylinders a month to cook their meals and is likely to pay up to 350 LYD every month, which is 41% of the median south Libyan income (850 LYD).
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The rising cost of living, unemployment and sweeping power cuts lead to protests erupting across the country. Libyan authorities have responded to the social unrest in part with economic policies, such as a promise to allocate 2bn LYD to municipalities to tackle the 14% unemployment rate.
COVID-19
- As of the 5th of October 2020, there were 36,809 confirmed COVID-19 cases, compared to 15,733 on the 4th of September. The continuing increase of COVID-19 cases may have created additional demand for hygiene items. For example, hand sanitiser prices increased by 69.0% from June - September 2020 and bleach prices rose by 27.6% from July - September 2020.