Investment in Eritrea: A Financial Perspective

This paper seeks to highlight the Financial Aspects of Investment issues and an economic overview of the Financial Crisis in Eritrea. Since its independence, Eritrea has been in the midst of national reconstruction. The country maintains a command economy, with government activities predominating over private enterprise. However, efforts are being made to create an institutional framework to encourage the development of a market-oriented economy in Eritrea. In 2012, Eritrea began encouraging some types of international investment, thus ending, as a matter of doctrine, years of adherence to self-imposed isolation and strict self-reliance. Eritrea’s national development priorities are clearly spelled out in policy statements related to infrastructure, human resources and food security. Still, the government has not implemented specific measures that would truly reform the command aspects of its economy or spur broad-based growth and market development, nor has it taken steps to loosen business practices, correct macroeconomic imbalances or address foreign currency shortages.