The Libyan government is looking to create a free trade zone in Benghazi to attract investment in non-oil industries.

Economy undersecretary Rajab Khalil says the plan could create up to 40,000 jobs in Libya’s second-largest city, according to a report by Bloomberg.

The North African country still faces significant security challenges as it attempts to rebuild its economy after former leader Muammar Gaddafi was overthrown and killed in a civil war last year.

On 10 April, an improvised bomb was thrown at a convoy carrying the head of the United Nations mission on a visit to Benghazi.

Libya’s economy is highly-dependant on oil and gas production, with about 95 per cent of export earnings generated from hydrocarbons.