Research and consulting in Eritrea

Country Overview:

IOA has penetrated the veil of secrecy that Eritrea’s government often used to shroud the economic, political and societal affairs of the country by conducting a range of research and consulting on the country. Our researchers have found that the end of Eritrea’s historic animosity with Ethiopia and resumption of bilateral trade and transportation ties has led to an overall improvement in the country’s economy. However, Eritrea is still saddled with a dictatorship that intrudes into the lives of Eritreans through forced conscriptions and other policies.

Higher world commodity prices boosted mineral exports (copper, gold, potash and zinc) and raised GDP in 2022, and this is likely to continue in 2023. The agriculture sector has proved vulnerable to locust invasions, which are worsening due to climate change.

Key opportunities in Eritrea:

Although a generally closed command economy, Eritrea is finding rewards from resumed trade with Ethiopia and other partners
IOA economists forecast that the country’s mineral resources can incite investment for years to come
The country’s unique architecture – both ancient and art deco – are primary tourism draws

Key concerns/risks in Eritrea:

One of Africa’s most secretive dictatorships has made life hard for Eritreans and unpredictable for business investors
Historically, Eritrea has never been long without war or political conflict, IOA researchers have found, and today’s unsustainable authoritarian regime continues
Locust plagues and drought are two symptoms of global warming that is hitting Horn of Africa nations particularly hard