Categories: News & Analysis

Rising Tensions in Southern Libya Stirs Illicit Economies

Rising Tensions in Southern Libya Stirs Illicit Economies

Escalating tensions in Fezzan

In the Libyan region of Fezzan, located in the southern reaches of the country, security tensions have surged after years of relative calm. Since a decisive shift six years ago with the Libyan Arab Armed Forces (LAAF) asserting control from Benghazi, Fezzan had experienced a fragile stability. That stability now appears increasingly vulnerable as a web of tribal rivalries, jihadist threats, smuggling networks, and external proxies collides with fragile governance in southern Libya.

The current faltering security landscape in Fezzan is not simply a local phenomenon. It ripples through broader Libyan politics, regional stabilization efforts, and the international community’s attempts to contain illicit economies that have long exploited the vast, under-governed deserts. Local communities report patrols thinning out, checkpoints multiplying, and an uptick in clashes between armed groups seeking to control routes for transport, charcoal, gold, fuel, and people.

Illicit economies under pressure—and expansion

Fezzan’s illicit economy is a mosaic of smuggling networks, unregulated markets, and informal governance mechanisms. When formal security capacity wanes, illicit actors often fill the vacuum. Fuel smuggling across desert corridors, illegal mining, and the trafficking of people and contraband have historically thrived here, leveraging remote outposts and porous borders. Rising tension threatens to disrupt legitimate livelihoods while simultaneously enabling more opportunistic, unregulated activity that thrives in uncertainty.

Analysts say the current strain may recalibrate the balance of power among regional actors, with some groups tightening control over smuggling corridors and others attempting to diversify into new revenue streams such as wildlife trade or extractive concessions. In areas where state presence is weakest, illicit economies can become de facto governing structures, offering rudimentary security in exchange for a share of the commercial flow. This dynamic complicates efforts by international partners to stabilize the region and provide alternatives to illicit trade.

Local perspectives and security trade-offs

Residents describe a landscape where protection rackets, local taxation on caravans, and informal agreements govern everyday life. The price of instability includes higher risks for merchants, farmers, and travelers. However, some communities fear that heavy-handed security crackdowns could push illicit activity further underground, increasing the cost of compliance for ordinary people and raising the likelihood of clashes over scarce resources.

Governance gaps and international implications

Italy, the European Union, and regional actors have shown continued interest in stabilizing southern Libya, given Fezzan’s strategic position as a transit route and its role in mitigating migratory flows and trafficking. The current tensions underscore governance gaps that persist in the absence of a unified, durable national framework. Security forces aligned with different blocs compete for influence, complicating counter-smuggling operations and intelligence sharing. When information is fragmented, illicit economies flourish under cover of night and desert winds.

Experts warn that if the security vacuum persists, it could erode confidence in state-building efforts and encourage a broader regional spillover, including opportunistic recruitment by extremist networks and criminal groups that exploit the confusion around governance and border integrity.

Paths forward: governance, resilience, and regional cooperation

Policy makers and regional partners are weighing multiple avenues to reduce the allure of illicit economies while safeguarding civilians. Key elements include: strengthening local governance with transparent sharing of revenues, expanding security presence with community engagement, and increasing cross-border information exchange to disrupt trafficking networks. Programs aimed at improving livelihoods—such as sustainable farming, regional trade infrastructure, and microfinance—can lessen reliance on illicit markets.

International and regional actors emphasize the need for a phased approach that prioritizes civilian protection, supports accountable local institutions, and aligns security efforts with humanitarian access. In Fezzan, where the desert’s vastness shapes daily life, sustainable stabilization may hinge on concrete economic opportunities and credible governance that outcompetes illicit ventures in the long run.

Conclusion

Rising tensions in southern Libya’s Fezzan region illuminate the fragility of the current security architecture and the resilience of illicit economies that thrive in uncertainty. While the challenges are daunting, coordinated governance, targeted development, and regional cooperation offer a path toward reducing illicit trade’s grip and restoring stability for communities along the southern frontiers.