Eritrea is the youngest Africa nation known for its political stability, fiscal restraint and low level of corruption. After independence in 1991, the government of Eritrea embarked on huge development programs that were targeted at reviving the economy, renovations and construction of the devastated infrastructure, and improvement of social services.
The government also formulated and implemented appropriate macroeconomic policies to guide the general development of the national economy.
1- The Strategic Location
Eritrea’s Strategic Location along the Red Sea provides ideal exposure to one of the world’s busiest shipping lines and established linkages to other areas of the region and beyond. The port of Massawa is a transit point for goods to the Middle East, European and Asian Markets. The development of the port is poised to bring about potential gains to trade.
2- Peace and security
Peace and security are the main pillars of a true and conducive investment environment in Eritrea. The economic policy underlines the necessity to have a market lead economic system. The private sector should have the upper hand in all economic sectors with the government to intervene in major public shares
3-Availability of Raw Materials
A report by the United Nations Environment Programme show that Africa is rich in natural resources and raw materials. The report further disclosed that the continent is home to 40% of the world’s gold and 30% of mineral reserves. According to Aljazeera, Africa holds a strategic position with oil and natural resources on the global map.
Investment in exploration activities for reserves of oil, natural gas, and other minerals provide a potential source for the expansion of export receipts. Eritrea’s natural mineral resources include gold, copper, potash, zinc, oil, natural gas, cement, gypsum, granite, marble, ceramics, limestone and iron ore.
The location of Eritrea close to Europe, Asia and Middle East gives it an advantage for tourism industry development. Eritrea provides wide range of opportunities and attraction sites for tourists, of varied interests including beach and marine resort tourism, cultural tourism to archeological remains and historical sites, Eco tourism, and medical tourism to natural hot spas.
Some of the major tourist attraction potentials of the country include historical and archaeological sites and remains, pristine beaches, 300 small sunny Islands historical and archeological sites that is rich and intact. The Eritrean Diaspora who had for many years resided in the developed high income countries can use their capital and experience; strategize their businesses plan, form companies, capital venture companies and invest in a much organized corporate style and stride to wards economics success.
5- The productivity of the the red sea water
The Red Sea is one of the world’s main maritime routes. Eritrea’s Coastal, Marine, and Island zone, which covers more than 121,000 square kilometers, including more than 350 islands and 1,200 km of coastline, has the potential for expanding the fisheries sector.
There are a total of 136 mammal species, 90 reptiles, and 19 amphibian species. Nearly 500 types of fish and 44 genera of hard corals have so far been recorded. All of these known species make the Red Sea rich in bio-diversity and are of high commercial importance.
Despite the significant potential contributions that fisheries can make to employment, nutrition, and trade, it is still underexploited. But this can be reversed through domestic and foreign investment for the development of the sector.
Now that you know 5 Main reasons why you should invest in Eritrea in 2022, consider doing your research before investing. Consider the business environment and conduct adequate research on the growth, liquidity. Also, it’s essential to consider other factors such as corporate tax, exchange rate, inflation, and financial crisis.
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