Economy

While in the past the Government of Eritrea stated that it was committed to a market economy and privatization, the government and the ruling PFDJ party maintain complete control of the economy. The government has imposed an arbitrary and complex set of regulatory requirements that discourage investment from both foreign and domestic sources, and it often reclaims successful private enterprises and property.

The port in Massawa has been rehabilitated and is being developed. In addition, the government has begun to export fish and sea cucumbers from the Red Sea to markets in Europe and Asia on a limited basis. A newly constructed airport in Massawa capable of handling jets could facilitate the export of high-value perishable seafood.

According to the International Monetary Fund (IMF), post-border war recovery was impaired by four consecutive years of recurrent drought that have reduced the already low domestic food production capacity. The government reports that harvests have improved but provides no data to support these claims. Eritrea currently suffers from large structural fiscal deficits caused by high levels of spending on defense, which have resulted in the stock of debt rising to unsustainable levels. Exports have collapsed due to strict controls on foreign currencies and trade, as well as a closed border with Ethiopia, which was the major trading partner for Eritrea prior to the war. In 2006, Eritrea normalized relations with Sudan and is beginning to open the border to trade between the two countries. Large and persistent transfers from Eritreans living abroad offer significant support to the economy.

How's the business in Eritrea?

Your comments I would not anybody at moment to try to invest in over you will lose your money. Maya, Eritrea We aren't doing bad but with pressure coming from USA about sactions on us. Hussan , Eritrea, Italy Please don't give bad impression of the country! Michael , Eritrea, London It is very sad to see the eritrean ppl is sueffr for a long period of time. even now the saction hurt for the ppl. the income from the mining it can be 60% goes to the ppl; the 40% for the stupid high rank officials. so the first victim is the eritrean ppl. if something happen tomorrow those stupid generals and official have enough money already, they will run away. weyane and shaebia is the enemy of eritrea. You can say weyane is doing a good thing for the eri ppl; it is like Bchilfa cab bahri(sea). they don't want to see eritrean progress. they help young eritrean to go to University of mekele, alemayo callege bla bla all that for their own advantage. Fuaad , oGEkpkfCqJsh In the mineral business, Eritrea is doing really well. The potential to find more deposits is certainly great.” In connection with Eritrea’s becoming a center of mining industry in the Arabian-Nubian Shield. that Eritrea has already established itself in that position. “The conditions Abel , london canada, china and the UN are definately going for africa's resources don't sell yourself cheap! do not let them exploit you/privatize. "land grabbing" is done in other parts of Africa by JP Morgan and Goldman Sachs. They predict rising food prices and want to profit from that.Will Africa profit? david , germany germany got also very corrupted by capitalism. but there are still good engineers and honest hearted people around that truly want to make the world a better place. it would really be the best that you learn from other cultures and do at least 51% yourself. you could also export solar-power! david , germany KEEP YOUR BEAUTIFUL SMILE :) EXPORT RENEWABLE SOLAR ENERGY AS HYDROGEN/METHANE! http://translate.google.com/translate?sl=de&tl=en&js=n&prev=_t&hl=de&ie=UTF-8&layout=2&eotf=1&u=http%3A%2F%2Fcyberwaves.wordpress.com%2F2011%2F06%2F18%2Fnetzschwankungen-durch-regenerative-energien-wind-solar%2F david , germany

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