Library of Congress – Federal Research Division Country Profile: Eritrea, September 2005 

COUNTRY PROFILE: ERITREA 

September 2005 

Formal Name: State of Eritrea (Hagere Ertra). 

Short Form: Eritrea (Ertra). 

Term for Citizen(s): Eritrean(s). 

Capital: Asmara (alternate spelling Asmera). 

Major Cities: Asmara, Keren, Assab, Massawa, Afabet, Teseney, Mendefera, Dekemhare, 

Adekeieh, Barentu, and Ghinda (according to decreasing size, 2005 estimates). 

Independence: Eritrea officially celebrated its independence from Ethiopia on May 24, 1993. 

Public Holidays: Eritrea observes the following public holidays: New Year’s Day (January 1), 

Independence Day (May 24), Martyrs’ Day (June 20), Anniversary of the Start of Armed 

Struggle (September 1), and Christmas Day (December 25). The following holidays with 

movable dates determined by the Islamic or Orthodox calendar are celebrated as well: Eid al Fitr, 

Eid al Adha, Epiphany, and Easter. 

 

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Flag: Eritrea’s flag is a rectangle divided into three triangles: a red isosceles 

triangle based on the hoist side, and a green upper and blue lower right 

triangle. A gold wreath encircling a gold olive branch is centered on the 

hoist side of the red triangle. 

HISTORICAL BACKGROUND 

Colonial Era: Until the late nineteenth century, the high plateau of present-day Eritrea was a 

part of the Ethiopian province of Tigray. Its inhabitants, racially, culturally, and linguistically 

Tigrayan, were subjects of the Ethiopian crown, whereas the surrounding lowlanders were for 

the most part independent. The boundaries of modern Eritrea were established during the period 

of Italian colonization that began in the late 1800s. An Italian shipping company, Rubatinno 

Shipping, purchased the port of Assab from a local ruler. In turn, the Italian government took 

over the port in 1882, hoping to use Eritrea as a launching point for the colonization of Ethiopia. 

The Italian presence in the Horn of Africa was formalized in 1889 with the signing of the Treaty 

of Wuchale with Emperor Menelik II of Ethiopia (r. 1889–1913), although Menelik would later 

renounce the agreement. For the next half-century, relations between Ethiopia and Italy, despite 

intermittent diplomatic agreements, were strained by repeated Italian efforts to expand their 

colonial base into Somali territory and Ethiopia, most notably in 1896, when Ethiopia defeated 

the Italian army in Tigray. Italian administration of Eritrea brought improvements in the medical 

and agricultural sectors of Eritrean society. Furthermore, the Italians employed many Eritreans in 

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public service (in particular in the police and public works departments) and oversaw the 

provision of urban amenities in Asmara and Massawa. In a region marked by cultural, linguistic, 

and religious diversity, a succession of Italian governors maintained a notable degree of unity 

and public order. 

Benito Mussolini’s rise to power in Italy in 1922 brought profound changes to the colonial 

government in Eritrea. The Fascists imposed harsh rule that stressed the political and racial 

superiority of Italians. Segregation was established, and Eritreans were demoted to menial 

positions in the public sector. Although Rome continued to implement agricultural reforms, these 

took place largely on farms owned by Italian colonists. The Fascist dictatorship regarded the 

colony as a strategic base for future aggrandizement and ruled accordingly. True to form, Italy 

used Eritrea as a base from which to launch its 1935–36 campaign to colonize Ethiopia. 

World War II, British Rule, and Federalization: Although Italian colonization in the late 

nineteenth and early twentieth centuries gave Eritrea its boundaries, Eritrean separatism as a 

political goal had its roots in World War II. British forces defeated the Italian army in Eritrea in 

1941 at the Battle of Keren and placed the colony under British military administration until 

Allied forces could determine its fate. Absent agreement among the Allies about the status of 

Eritrea, British administration continued for the remainder of World War II and into 1950. In the 

immediate postwar years, the British proposed that Eritrea be divided along religious lines and 

parceled off to Sudan and Ethiopia. The Soviet Union, anticipating a communist victory in the 

Italian polls, initially supported returning Eritrea to Italy under trusteeship or as a colony. Arab 

states, seeing Eritrea and its large Muslim population as an extension of the Arab world, sought 

the establishment of an independent state. 

In the absence of Allied agreement, and in the face of Eritrean demands for self-determination, a 

United Nations (UN) commission was dispatched to the former colony in February 1950 in the 

hope of finding a solution. The commission proposed the establishment of some form of 

association with Ethiopia, and the UN General Assembly adopted that proposal along with a 

provision terminating British administration of Eritrea no later than September 15, 1952. The 

British, faced with a deadline for leaving, held elections on March 16, 1952, for a Representative

Assembly of 68 members, evenly divided between Christians and Muslims. This body in turn 

accepted a draft constitution put forward by the UN commissioner on July 10. On September 11, 

1952, Emperor Haile Selassie of Ethiopia (r. 1930–74) ratified the constitution. The 

Representative Assembly subsequently became the Eritrean Assembly. 

The details of Eritrea’s association with Ethiopia were established by the UN General Assembly 

resolution of September 15, 1952. It called for Eritrea and Ethiopia to be linked through a loose 

federal structure under the sovereignty of the emperor. Eritrea was to have its own administrative 

and judicial structure, its own flag, and control over its domestic affairs, including police, local 

administration, and taxation. The federal government, which for all intents and purposes was the 

existing imperial government, was to control foreign affairs (including commerce), defense, 

finance, and transportation. As a result of exposure to Italian and especially British methods of 

governance and political life, Eritreans had developed a distinct sense of cultural identity and 

superiority vis-à-vis Ethiopians, and a desire for political freedoms alien to Ethiopian political 

tradition. From the start of the federation, however, Haile Selassie attempted to undercut 

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Eritrea’s independent status, a policy that alienated many Eritreans. The emperor pressured 

Eritrea’s elected chief executive to resign, made Amharic the official language in place of Arabic 

and Tigrinya, terminated the use of the Eritrean flag, imposed censorship, and moved many 

businesses out of Eritrea. Finally, in 1962 Haile Selassie pressured the Eritrean Assembly to 

abolish the federation and return to the imperial Ethiopian fold, much to the dismay of those in 

Eritrea who favored a more liberal political order. 

The Armed Struggle for Independence: Militant opposition to the incorporation of Eritrea into 

Ethiopia had begun in 1958 with the founding of the Eritrean Liberation Movement (ELM), an 

organization made up mainly of students, intellectuals, and urban wage laborers. The ELM 

engaged in clandestine political activities intended to cultivate resistance to the centralizing 

policies of the imperial state. By 1962, however, the ELM had been discovered and destroyed by 

imperial authorities. 

Even as the ELM was being neutralized, a new organization of Eritrean nationalists was forming. 

In 1960 Eritrean exiles in Cairo founded the Eritrean Liberation Front (ELF). In contrast to the 

ELM, from the outset the ELF was bent on waging armed struggle on behalf of Eritrean 

independence. The ELF was composed mainly of Eritrean Muslims from the rural lowlands on 

the western edge of the territory. In 1961 the ELF's political character was vague, but radical 

Arab states such as Syria and Iraq sympathized with Eritrea as a predominantly Muslim region 

struggling to escape oppression and imperial domination. These two countries therefore supplied 

military and financial assistance to the ELF. 

The ELF initiated military operations in 1961 and intensified its activities in response to the 

dissolution of the federation in 1962. By 1967 the ELF had gained considerable support among 

peasants, particularly in Eritrea's north and west, and around the port city of Massawa. Haile 

Selassie attempted to calm the growing unrest by visiting Eritrea and assuring its inhabitants that 

they would be treated as equals under the new arrangements. Although he doled out offices, 

money, and titles in early 1967 in the hope of co-opting would-be Eritrean opponents, the 

resistance persisted. 

By 1971 ELF activity had become enough of a threat that the emperor had declared martial law 

in Eritrea and had deployed roughly half his army to contain the struggle. Internal disputes over 

strategy and tactics, however, eventually led to the ELF's fragmentation and the founding in 

1972 of another group, the Eritrean People's Liberation Front (EPLF). The leadership of this 

multiethnic movement came to be dominated by leftist, Christian dissidents who spoke Tigrinya,

Eritrea's predominant language. Sporadic armed conflict ensued between the two groups from

1972 to 1974, even as they fought Ethiopian forces. 

In September 1974, a group of Ethiopian military officers deposed the emperor and established a 

military government in Addis Ababa known as the Derg, which allied itself with the Soviet 

Union. The Derg immediately turned its attention to the Eritrean question. Some in its ranks 

pressed for a decisive military solution, while others favored a negotiated settlement. Influential 

Derg nationalists, like the imperial regime, endorsed the ideal of "Greater Ethiopia," that is, a 

unitary, multiethnic state, and eventually decided to continue to use force in dealing with 

Eritrean secessionists. In response, the ELF and EPLF maintained their struggle for Eritrean 

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independence. Armed conflict between the Derg and (mostly) the EPLF continued throughout 

the 1970s and 1980s, with neither side able to score a decisive victory. In particular, the EPLF 

stronghold of Nakfa in northern Eritrea withstood repeated assaults by the Ethiopian army. 

Beginning in March 1988, however, a series of offensives against demoralized Ethiopian forces 

eventually led to EPLF control of all Eritrea by late May 1991. At the same time that the EPLF 

was defeating the Ethiopian army in Eritrea, Tigrayan and allied rebel forces took over northern 

Ethiopia and drove the Derg from power. 

Independence: After a referendum showing that nearly 100 percent of Eritreans favored 

separation, Eritrea gained independence from Ethiopia on May 24, 1993, a development many 

Ethiopians opposed. Isaias Afwerki, the leader of the EPLF, became the first president of Eritrea. 

In 1994 the EPLF became a political party, the People’s Front for Democracy and Justice. It 

remains the only legal political party in Eritrea. President Isaias and his counterpart in Addis 

Ababa, Meles Zenawi, a fellow Tigrayan, established a cordial relationship, and a variety of 

agreements were signed between the two nations in the years following independence. Five years 

after independence, however, tensions over economic policies and border disputes led to war 

between the two impoverished nations. Before a cease-fire was reached in June 2000, an 

estimated 100,000 soldiers had lost their lives, and a quarter of the population of Eritrea had been 

displaced by fighting. In addition, Eritrea suffered extensive damage to its already weak 

infrastructure and economy, from which it has yet to recover. On December 12, 2000, Eritrea 

and Ethiopia signed a final peace agreement, but they continue to quarrel over the precise 

demarcation of their common border. 

As of mid-2005, Eritrea’s relations with Ethiopia remain extremely tense. Some 3,300 UN 

peacekeepers patrol a demilitarized zone inside Eritrea to monitor the cease-fire, and the 

possibility of renewed warfare cannot be ruled out. Eritrea’s relations with Sudan and the West 

are problematic, and the nation has become increasingly isolated. Although a constitution has 

been adopted that calls for elections and political reforms, these have yet to take place. The 

government of Isaias Afwerki has become intolerant and authoritarian; it has imposed press 

censorship and has imprisoned many of its political opponents. Discontent is widespread and 

growing but is harshly suppressed. Today, Eritrea is free from Ethiopian domination, but it is far 

from a democratic state. 

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GEOGRAPHY 

Location: Eritrea is located along the Red Sea, north of the Horn of 

Africa, between Djibouti and Sudan. Eritrea’s longest border is shared 

with Ethiopia to the south. 

Size: The total area of Eritrea, including the Dahlak archipelago off 

Massawa, is 124,320 square kilometers. 

Land Boundaries: Eritrea shares a 1,626-kilometer border with three nations: Sudan to the north 

and west (605 kilometers), Ethiopia to the south (912 kilometers), and Djibouti to the southeast 

(109 kilometers). 

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Disputed Territory: In December 1995, Eritrea entered into a dispute with Yemen over claims

to the Hanish Islands and fishing rights in the Red Sea. This dispute was resolved in 1999 when 

the islands were awarded to Yemen through international arbitration, and the Eritreans complied 

with the verdict. A territorial dispute along Eritrea’s border with Ethiopia erupted into conflict in 

1998. Despite a cease-fire followed by a peace agreement in 2000 and the rendering of an 

arbitration decision by the Ethiopia-Eritrea Boundary Commission in 2002 as part of the peace 

arrangements, the dispute has yet to reach a peaceful resolution. Ethiopia has rejected parts of the 

arbitration decision and has called for dialogue, whereas Eritrea has called for implementation of 

the decision as a condition for dialogue. As of mid-2005, the United Nations Mission in Ethiopia 

and Eritrea maintains approximately 3,300 troops in a 25-kilometer wide Temporary Security 

Zone on the Eritrean side of the disputed border in an effort to monitor the 2000 cease-fire. 

Length of Coastline: Eritrea’s coastline is 2,234 kilometers long, with 1,151 kilometers along 

the Red Sea and 1,083 kilometers of island coastline in the Red Sea. 

Maritime Claims: Eritrea’s maritime claim in the Red Sea extends 12 nautical miles. 

Topography: Eritrea’s topography can be divided into three broad categories: the arid, narrow 

lowland strip along the Red Sea; the north-central region, which is an extension of the Ethiopian 

Plateau and is dissected by river valleys; and the western plain along the Sudanese border. The 

highest point is Emba Soira, southeast of Asmara, at 3,010 meters; the lowest is in the Denakil 

Depression along the Red Sea, which at places is 130 meters below sea level. 

Principal Rivers: The Setit River is Eritrea’s only perennial waterway, albeit a non-navigable 

one. It flows from Ethiopia (where it is called the Tekezé) along the western border and into 

Sudan (where it is known as the Atbara). The other rivers in Eritrea, all of which are seasonal 

during the rainy season, are the Anseba, the Barka, and the Mareb, which is known as the Gash 

in its lower course in western Eritrea and which forms a part of the border between Eritrea and 

the Ethiopian province of Tigray. 

Climate: Eritrea’s highlands are located on the highest landmass on the African continent and, 

therefore, have much cooler, damper weather than the semi-arid coast along the Red Sea and in 

the western hills and lowlands. The average temperature in Asmara is 16° C, whereas in 

Massawa (on the coast) it is 30° C and can reach 50° C. Average rainfall in Asmara is 508 

millimeters per year; in Massawa it is only 205 millimeters per year. The Denakil Depression is 

one of the hottest places on earth. 

Natural Resources: Resources in Eritrea include barite, copper, feldspar, fish, gold, kaolin, 

potash, salt, and zinc. Reserves of oil and natural gas also may exist. 

Land Use: Less than 5 percent of the land in Eritrea is arable, and permanent crops occupy a 

mere 0.03 percent of total land area. Most land is suitable only for pastorage, but some areas, 

such as the Red Sea coast and the far north, are too arid even for this purpose. 

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Environmental Factors: Eritrea faces continued deforestation, desertification, soil erosion, 

overgrazing, and significant land loss as a result of the presence of hundreds of thousands of land 

mines. 

Time Zone: Eritrea is three hours ahead of Greenwich Mean Time. 

SOCIETY 

Population: According to the United Nations, in 2004 Eritrea’s population reached 4.3 million, 

with an annual growth rate of 2.6 percent. Twenty percent of Eritreans lived in urban areas, 

which experienced an average annual growth rate of 5.8 percent between 2000 and 2005. 

Population density was 36.7 persons per square kilometer, with the greatest concentration in the 

highlands and the lowest along the Red Sea littoral. At the end of 2004, nearly 120,000 Eritreans 

were refugees abroad, mostly in Sudan. 

Demography: In 2004, 44.8 percent of the population (male 998,404; female 993,349) was less 

than 15 years of age, 51.9 percent (male 1,140,892; female 1,166,481) was 15–64, and those 

aged 65 and older accounted for 3.3 percent of the population (male 72,776; female 75,405). In 

the overall population, there were 0.99 males for every female. The number of births per 1,000 

population was 39; the number of deaths, 13.4. The infant mortality rate per 1,000 live births was 

75.6. The total fertility rate was 5.7 children born per woman. Life expectancy at birth was 

estimated at 52.7 years (51.3 years for men, 54.1 years for women). 

Ethnic Groups: The Eritrean government recognizes nine major ethnic groups in Eritrea, 

although the ethnic and linguistic context is complex. The Tigray and Tigre-speakers (such as the 

Mensa, the Marya, and others) constitute 80 percent of the population. The other seven groups 

are the Afar (Denakil), Bilen, Beni Amir (Beja), Kunama, Nera (Nara, Barya), Rasha’ida, and 

Saho. 

The Tigray live on the central and southern plateau and are agriculturalists. The Tigre-speaking 

groups inhabit the northern hills and lowlands and are mostly pastoralists. The Afar, nomadic 

herdsmen, live along the Red Sea coast. The Bilen are agriculturalists in the Keren area. The 

Beni Amir are pastoralists who live in the western lowlands and along the border with Sudan. 

The Kunama occupy the region between the Gash and Setit rivers. The Nera reside north of the 

Gash around Barentu. The Rasha’ida, Arabic-speaking bedouin from Saudi Arabia, live along 

the Sudan border. The Saho, farmers or herdsmen depending on elevation, live on the 

escarpment and coastal plain southeast of Asmara. 

Languages: Arabic, English, and Tigrinya are the three official languages in Eritrea. Arabic and 

Tigrinya are the most widely used languages and, along with Italian, are used in commercial and 

public business. English is also widely spoken and is the medium of instruction in middle and 

secondary schools and in higher education. Other languages spoken in Eritrea are Afar (Denkali), 

Amharic, Beja (Hadareb), Bilen, Kunama, Nera, Saho, and Tigre. Languages in Eritrea belong to 

one of three linguistic families: Semitic (Amharic, Arabic, Tigre, Tigrinya); Cushitic (Afar, Beja, 

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Bilen, Saho); and Nilotic (Kunama and Nera). Linguistic categories do not always coincide with 

ethnic identities; for example, the Beni Amir include both Beja- and Tigre-speakers. 

Religion: No reliable figures on religious affiliation are available, but approximately half of the 

Eritrean population is Sunni Muslim, and some 40 percent, Orthodox Christian. The remainder 

includes Eastern Rite and Roman Catholics, Protestants, smaller numbers of Seventh Day 

Adventists and Jehovah's Witnesses, and a few Baha’is. Approximately 2 percent of the 

population practices traditional indigenous religions. Muslims are the majority in the eastern and 

western lowlands, whereas Orthodox Christians predominate in the highlands. The government 

recognizes five religious groups—Orthodox Christians, Muslims, Catholics, Seventh Day 

Adventists, and the Evangelical Church of Eritrea (affiliated with the Lutheran World 

Federation), and since May 2002 has attempted to proscribe all other forms of religious practice. 

Education and Literacy: Education in Eritrea is officially compulsory between seven and 13 

years of age. However, the education infrastructure is inadequate to meet current needs. Statistics 

vary at the elementary level, suggesting that between 39 and 57 percent of school-aged children 

attend primary school; only 21 percent attend secondary school. Student-teacher ratios are high: 

45 to 1 at the elementary level and 54 to 1 at the secondary level. There are an average 63 

students per classroom at the elementary level and 97 per classroom at the secondary level. 

Learning hours at school are often less than four hours per day. Skill shortages are present at all 

levels of the education system, and funding for and access to education vary significantly by 

gender (with dropout rates much higher for girls) and location. Illiteracy estimates for Eritrea 

range from around 40 percent to as high as 70 percent. 

Health and Welfare: Eritrea remains one of the poorest countries in the world. About one-third 

of the population lives in extreme poverty, and more than half survives on less than US$1 per 

day. Health care and welfare resources generally are believed to be poor, although reliable 

information about conditions is often difficult to obtain. In 2001, the most recent year for which 

figures are available, the Eritrean government spent 5.7 percent of gross domestic product on 

national health accounts. The World Health Organization (WHO) estimated that in 2004 there 

were only three physicians per 100,000 people in Eritrea. The two-year war with Ethiopia, 

coming on the heels of a 30-year struggle for independence, negatively affected the health sector

and the general welfare. The rate of prevalence of human immunodeficiency virus/acquired 

immune deficiency syndrome (HIV/AIDS), although low by sub-Saharan African standards, was 

high enough at 2.7 percent in 2003 to be considered a generalized epidemic. In the decade since 

1995, however, impressive results have been achieved in lowering maternal and child mortality 

rates and in immunizing children against childhood diseases. In 2003 average life expectancy 

was slightly less than 53 years, according to the WHO. 

ECONOMY 

Overview: In the early 1950s, when Eritrea was awarded to Ethiopia, it possessed a far more 

sophisticated urban and industrial infrastructure than Ethiopia. Industrialization in the years since 

then focused on Ethiopia, however, at the expense of further development in Eritrea. By the time 

of its independence from Ethiopia in 1993, Eritrea’s economy had been destroyed by war and 

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was dependent on income from ports and its small agricultural base. The onset of conflict with 

Ethiopia in 1998 halted all bilateral trade, severely reducing port activity and income in Eritrea. 

According to World Bank estimates, Eritrea lost US$225 million worth of livestock and 55,000 

homes during the war. Damage to public buildings is estimated at US$24 million. The end of 

hostilities with Ethiopia was followed by consecutive years of drought, which together have 

crippled the agricultural base. The impact of these problems is softened only by remittances from

abroad, which are estimated to account for 32 percent of gross domestic product (GDP). As of 

2005, Eritrea is one of the poorest countries in the world. More than half of the population lives 

on less than US$1 per day, and about one-third lives in extreme poverty (defined as subsisting on 

less than 2,000 calories per day). Although the Eritrean government has stated its commitment to 

adoption of market-based economic policies in the long run, authorities are increasingly reliant 

on centrally planned economic management. In general, the government produces few consistent 

and reliable statistics on economic activity. 

Gross Domestic Product (GDP): In 2003 GDP was estimated to have grown by 2 percent, a 

slight improvement over 2002, the last year for which firm figures are available, when GDP 

expanded by 1.8 percent in real terms to about US$600 million. Despite the growth, GDP per 

capita declined in 2003 by 10 percent in real terms, according to the International Monetary Fund 

(IMF). Although in 2001 GDP grew by 10.2 percent, this increase came on the heels of 2000, 

when, as a consequence of war with Ethiopia, GDP contracted by a staggering 13.2 percent. 

Growth in 1999 was flat at 0.3 percent growth. Between 1994 and 1997, when relations with 

Ethiopia and the rest of the world were stable, GDP growth averaged 7 percent. In 2004, 

according to IMF estimates, GDP per capita in Eritrea was only US$130. Breakdowns of the 

Eritrean economy by sector are not readily available; however, according to some estimates, in 

2003 services accounted for 62.4 percent of GDP, industry for 25.3 percent, and agriculture for 

the remaining 12.4 percent. 

Government Budget: Eritrea does not publish a budget, making its fiscal condition difficult to 

assess. According to the International Monetary Fund, the overall fiscal deficit in 2003 was 17 

percent of gross domestic product (GDP). Government expenditures for that year were estimated 

to be US$375 million, with revenues of only US$235.7 million. In 2002 the fiscal deficit was 32 

percent of GDP. Current expenditures continue to exceed budgeted spending, particularly in 

defense and other discretionary expenditures. Monetary policy remains subservient to the 

financing demands of the government, and debt is unsustainably high. This situation is not likely 

to change until demobilization of the military occurs. 

Inflation: Inflation continues to be a problem in Eritrea, particularly as years of drought push 

grain prices higher and defense expenditures remain high. The International Monetary Fund 

estimates that in 2003 (the most recent year for which figures are available) average inflation 

reached 23 percent. 

Agriculture, Forestry, and Fishing: In 2003 agriculture employed nearly 80 percent of the 

population but accounted for only 12.4 percent of gross domestic product (GDP) in Eritrea. The 

agricultural sector is hampered by the absence of modern farming equipment and techniques, 

erratic rainfall, exhausted soils, and lack of financial services and investment. Major agricultural 

products are barley, beans and lintels, dairy products, meat, millet, skins, sorghum, teff, and 

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wheat. The displacement of 1 million Eritreans as a result of the war with Ethiopia, multi-year 

drought, and the widespread presence of land mines all have played a role in the declining 

productivity of the agricultural sector. Currently, almost a quarter of the country’s most 

productive land remains unoccupied because of the lingering effects of the 1998–2000 war with 

Ethiopia. In 2005 domestic food production is expected to provide for less than 20 percent of 

domestic demand and will leave between 1.7 and 2.2 million people dependent on humanitarian 

assistance to meet basic food needs. 

Forestry is not a significant economic activity in Eritrea, and reliable figures on the extent and 

value of the fishing industry in Eritrea are difficult to obtain. However, Eritrea’s long coastline 

clearly offers the opportunity for significant expansion of the fishing industry from its current, 

largely artisanal, stage. Eritrea exports fish and sea cucumbers from the Red Sea to markets in 

Europe and Asia, and there is hope that the construction of a new, jet-capable airport in 

Massawa, as well as rehabilitation of the port there, may support increased exports of high-value 

seafood. In 2002 exports were about 14,000 tons, but the maximum stable yield is thought to be 

nearly 80,000 tons. Italian and Dutch investors built a fish processing plant in 1998 that now 

exports 150 tons of frozen fish every month to markets in Britain, Germany, and the Netherlands. 

Tensions with Yemen over fishing rights in the Red Sea flared up in 1995 and again in 2002, and 

Eritrea’s difficult relations with other nations could hamper further development of the industry. 

Mining and Minerals: Eritrea’s substantial mineral deposits are largely unexplored as a 

consequence of the war with Ethiopia. According to the Eritrean government, artisanal mining in 

1998 collected 573.4 kilograms of gold. Eritrea is estimated to have some 14,000 kilograms of 

total gold reserves. Western observers also have noted Eritrea’s excellent potential for quarrying 

ornamental marble and granite. As of 2001, some 10 mining companies (including Canadian and 

South African firms) had obtained licenses to prospect for different minerals in Eritrea. The 

government of Eritrea reportedly is in the process of conducting a geological survey for use by 

potential investors in the mining sector. The presence of hundreds of thousands of land mines in 

Eritrea, particularly along the border with Ethiopia, presents a serious impediment to future 

development of the mining sector. 

Industry and Manufacturing: During the period of federation, industrial capacity largely 

shifted to Ethiopia, leaving the Eritrean industrial sector with outmoded capital equipment. In 

2003 industry accounted for 25.3 percent of gross domestic product . Major products include 

processed food and dairy products, alcoholic beverages, glass, leather goods, marble, textiles, 

and salt. 

Energy: Households consume more than 80 percent of total energy production. Electricity 

production in 2001 was estimated at 220.5 million kilowatt-hours. Consumption for that year 

was estimated at 205.1-kilowatt hours. An 88-megawatt electricity plant funded by Saudi Arabia, 

Kuwait, and Abu Dhabi was completed just south of Massawa in 2003, its completion delayed 

nearly three years by the war with Ethiopia. Annual consumption of petroleum in 2001 was 

estimated at 370,000 tons. Eritrea has no domestic petroleum production; the Eritrean Petroleum

Corporation conducts purchases through international competitive tender. According to the U.S. 

Department of Commerce, opportunities exist for both on- and offshore oil and natural gas 

exploration; however, these prospects have yet to come to fruition. The Eritrean government has 

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expressed interest in developing alternative energy sources, including geothermal, solar, and 

wind power. 

Services: In 2003 services accounted for 62.4 percent of gross domestic product. Financial 

services, the bulk of the services sector, are principally rendered by the National Bank of Eritrea 

(the nation’s central bank), the Commercial Bank of Eritrea, the Housing and Commerce Bank of 

Eritrea, the Agricultural and Industrial Bank of Eritrea, the Eritrean Investment and Development 

Bank, and the National Insurance Corporation of Eritrea, all majority owned by the government 

and ruling party. 

Banking and Finance: According to the International Monetary Fund, commercial banks in 

Eritrea—all government owned and operated—appear to be in compliance with prudent 

regulations. Although the commercial banking sector is largely profitable, mostly owing to 

income from foreign exchange transactions, the sector is burdened by a high proportion of nonperforming loans. Core lending activities do not generate sufficient income to cover operating 

costs at most commercial banks. 

Tourism: Eritrea’s poverty, the presence of large numbers of land mines, and the continued 

tensions that flare up between Eritrea and its neighbors have deterred the development of a 

tourist industry in Eritrea. According to the World Tourism Organization, international tourism

receipts in 2002 were only US$73 million (compared with US$730 million for Tanzania). 

Labor: Agriculture employs about 80 percent of the population in Eritrea, and the remaining 20 

percent are employed in industry and services. Although information is scarce, unemployment is 

reported to be high. 

Foreign Economic Relations: China, South Korea, Italy, South Africa, and Germany are 

aggressively pursuing market opportunities in Eritrea. There is growing interest in U.S. products 

and services in Eritrea, although U.S. investment in Eritrea is still small. 

Imports: In 2002 (the most recent figures available) Eritrea imported goods worth US$533 

million, including food, military matériel, fuel, manufactured goods, machinery, and 

transportation equipment. Eritrea’s main suppliers were the United Arab Emirates, Saudi Arabia, 

Italy, Germany, and Belgium. In January 2005, all imports by private businesses and individuals 

were temporarily suspended because of the country’s shortfall in foreign currency. 

Exports: In 2002 (the most recent figures available) exports from Eritrea were valued at US$52 

million, and the bulk were skins, meat, live sheep and cattle, and gum arabic. The major markets 

for Eritrean goods were Sudan, followed by Italy, Djibouti, and Germany. More recently, fish, 

flowers, salt, and textiles have joined the list of exports, and Sudan is no longer a major trading 

partner. 

Trade Balance: In 2002 imports worth US$533 million far exceeded exports at US$52 million. 

Balance of Payments: Asmara’s poor relations with neighboring countries have had a 

profoundly negative impact on the economy, one reason for the dire balance of payments 

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Library of Congress – Federal Research Division Country Profile: Eritrea, September 2005 

situation. Exports declined significantly during the border conflict with Ethiopia, a decline 

exacerbated by a subsequent break in trade relations with Sudan. At the same time, imports—

mostly of food aid, manufactures, and transportation equipment—continue to rise, and foreign 

reserves have declined to precarious levels. According to the International Monetary Fund, in 

2003 foreign reserves were just US$17.2 million, sufficient to cover only two weeks of imports. 

The balance of payments in 2000 was negative US$44.7 million; by 2003 it had improved to 

negative US$16.4 million. Remittances from Eritreans abroad and foreign aid form a significant 

portion of Eritrea’s income. Of the two, remittances far exceed foreign aid and are estimated to 

have reached US$400 million per year in 1999, the last year for which figures are available. In 

January 2005, the government halted all imports by businesses and the private sector because of 

the country’s shortfall in foreign currency. 

External Debt: In 1997 external debt totaled US$75.5 million. By 2001 (the most recent 

available information), that figure had grown to US$409.6 million. 

Foreign Investment: Foreign investment, although ostensibly favored by the Eritrean 

government, is nonetheless hindered by government regulations that seek to protect domestic 

industries from foreign competition and by a generally unfavorable investment climate. Major 

foreign investors in Eritrea include China, South Korea, Italy, South Africa, and Germany, as 

well as the World Bank. 

Foreign Aid: In 1998 net official development assistance was US$135.8 million; in 2002 it 

reached US$217.6 million. The government prefers private-sector investment to official aid 

programs, and its relations with aid-dispensing nations and international institutions have often 

been difficult. 

Currency and Exchange Rate: The official currency is the Eritrean nakfa (ERN), introduced in 

November 1997. In early 2005, likely in an effort to increase foreign capital reserves, the 

Eritrean government decreed that all transactions in Eritrea must be conducted in nakfa. In April 

it became illegal for individuals to hold and exchange foreign currency. As of January 1, 2005, 

the government set the foreign exchange rate at US$1=ERN15. 

Fiscal Year: The fiscal year follows the calendar year, January 1–December 31. 

TRANSPORTATION AND TELECOMMUNICATIONS

Overview: Eritrea’s transportation network, severely damaged and largely dismantled during 

Eritrea’s war for independence and border conflict with Ethiopia, is rudimentary at best. Plans 

for significant redevelopment are underway, but the capital resources necessary to fund road and 

rail projects are not readily available.

Roads: The only fully paved road in Eritrea (and the busiest) is the 107-kilometer stretch 

connecting Massawa and Asmara. Asphalting of the 120-kilometer stretch of road between 

Barentu and Teseney is proceeding intermittently; the paving of the 580-kilometer coastal road 

connecting Massawa and Assab is also underway. In all, Eritrea has some 4,000 kilometers of 

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Library of Congress – Federal Research Division Country Profile: Eritrea, September 2005 

roadways, of which the vast majority are unpaved. All roads into Ethiopia have been closed since 

the outbreak of the border dispute between the two nations in 1998. 

Railroads: Eritrea’s sole railroad, the 306-kilometer line linking Akordat with Asmara and the 

port of Massawa, was built by Italian colonialists. It was shut down in 1976 because of the threat 

from Eritrean guerrilla forces and was largely destroyed in later fighting. Efforts to rebuild the 

Asmara-Massawa segment began in 1999 and were completed in early 2003. Plans call for 

extending the line to Bisha, 150 kilometers west of Asmara, where gold and copper mining is 

expected to begin. A project to link Eritrea’s rail lines to the Sudanese network at Kassala has 

been delayed by increased tensions with Khartoum. 

Ports: A joint agreement between Eritrea and Ethiopia signed in 1993 called for the two nations 

to share facilities at the ports of Assab and Massawa. Prior to the 1998–2000 hostilities between 

the neighbors, tariffs and fees associated with port traffic were a significant source of income for 

Eritrea. During the border dispute, trade between the nations came to an abrupt halt, and Ethiopia 

launched air raids targeting the port of Massawa. Despite the 2000 cease-fire, trade activity with 

Ethiopia has not resumed. As of 2005, reconstruction of Massawa has taken place, and it remains 

the primary port in Eritrea. It is located some 107 kilometers to the northeast of Asmara. 

Facilities at Massawa include five five-ton cranes and five mobile cranes, eight forklifts, a 

covered storage area measuring 7,020 square meters, and open storage measuring 27,311 square 

meters. Although the port of Assab is the largest in Eritrea (with berths for six ocean-going 

vessels), activity there fell dramatically with the onset of hostilities with Ethiopia and has not 

recovered. The isolation of Assab (located some 580 kilometers southwest of Asmara) leaves it 

ill-suited to play a significant role in the Eritrean economy despite its size and on-site facilities, 

which include a cold storage warehouse, a grain storage warehouse, and a nearby oil refinery 

(unused since 1997). Eritrea, along with Yemen and Djibouti, controls the Bab el Mandeb 

seaway between the Red Sea and Gulf of Aden, a point of immense strategic importance for the 

flow of trade, particularly of oil, between Asia and Europe. 

Inland Waterways: Eritrea has no navigable waterways. 

Civil Aviation and Airports: Eritrea has two airports with permanently surfaced runways—

Asmara International and Assab. Asmara International, portions of which are designed for use by 

the military, has a 3,000-meter runway; Assab airport has a 3,500-meter runway. Unpaved 

runways are located in Massawa and Tessawa, both some 1,900 meters long. Many smaller 

landing strips exist throughout Eritrea as well. Eritrean Airlines, non-operational during the 

1998–2000 conflict, is flying once again. Destinations include Nairobi, Amsterdam, Frankfurt, 

and Rome; its fleet is a single leased Boeing 767–300ER. Foreign flag carriers serving Asmara 

International include British Airways, Egyptair, Lufthansa, Saudi Arabian Airlines, Sudan 

Airways, and Yemen Airways. No U.S. flag carrier flew into Eritrea as of mid-2005. 

Pipelines: None known. 

Telecommunications: Telecommunications infrastructure in Eritrea is poorly developed and 

controlled by the government. Statistics are not widely available on all sectors, but it was 

estimated that in 2003–4 there were 38,100 main telephones lines, around 1,050 Internet hosts, 

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Library of Congress – Federal Research Division Country Profile: Eritrea, September 2005 

and 9,500 Internet users. A 2000 estimate noted two AM and shortwave broadcast stations and 

no FM broadcast stations. Statistics on the number of televisions, radios, and computers in use in 

Eritrea are not available, but it is widely thought that rates of ownership of these items are very 

low. There are no reliable estimates available on the number of mobile cellular phones in use. 

GOVERNMENT AND POLITICS 

Overview: Eritrea is a one-party state. Elections have been postponed repeatedly, and reforms 

called for in the constitution, ratified in 1997, have yet to take place. 

Constitution: In March 1994, the Provisional Government of Eritrea established a Constitutional 

Commission. The resulting constitution was introduced in 1997, one year later than planned. 

Although the constitution has been ratified, it has yet to be fully implemented, and general 

elections have not been held, despite the ratification of an election law in 2002. 

Branches of Government: The Eritrean constitution calls for legislative, executive, and judicial 

branches. According to the constitution, a 150-seat unicameral legislature, the National 

Assembly, decides internal and external policy, approves the budget, and elects the president of 

the country. However, the National Assembly has not met since 2002, and many of its members 

are either in prison or have fled the country. Legislative as well as executive functions are now 

exercised by President Isaias Afwerki. The president’s cabinet, the executive branch of the 

government, has 17 ministers, all appointed by the president. Civilian and military zonal 

administrators also are appointed by the president. The judiciary consists of three court systems: 

civilian, military, and special courts. Civilian courts include community courts, sub-regional 

courts, regional courts, and the High Court, which also serves as an appellate court. 

Administrative Divisions: Eritrea has six administrative regions (zobatat; sing., zoba): Anseba, 

Debub, Debubawi K'eyih Bahri, Gash-Barka, Ma'akel, and Semenawi Keyih Bahri. 

Provincial and Local Government: Each of the six administrative regions has its own regional, 

sub-regional, and village administrations. 

Judicial and Legal System: Although the judiciary is nominally independent of the executive 

and legislative branches, in practice there reportedly is significant interference in the judicial 

process. In one case in 2001, the president of the High Court was detained after criticizing the 

government for interfering in the judiciary. The legal system incorporates pre-independence laws 

of the Eritrean People’s Liberation Front, revised Ethiopian laws, customary laws, and laws 

enacted after independence. Sharia law is used in civil cases involving Muslims. 

Electoral System: National Assembly elections were scheduled for 2001, but the elections were 

delayed indefinitely by the government and have yet to take place. Although elections have not 

been held, the president ostensibly serves a five-year term and is limited to serving no more than 

two terms. 

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Library of Congress – Federal Research Division Country Profile: Eritrea, September 2005 

Politics and Political Parties: The People’s Front for Democracy and Justice (PFDJ) is the 

ruling party in Eritrea. Opposition political parties are not legal and do not have a political 

presence in the Eritrean government. Opposition groups in Eritrea include the Democratic 

Movement for the Liberation of Eritrea, the Eritrean Islamic Salvation Movement (Eritrean 

Islamic Jihad), the Eritrean Liberation Front, the Eritrean National Alliance, the Eritrean 

People’s Liberation Front-Democratic Party, and the Red Sea Afar Democratic Organization. 

Mass Media: There is no independent press in Eritrea. In 2001, in an effort to quell burgeoning 

dissent about the future of the People’s Front for Democracy and Justice, the government closed 

down eight independent newspapers and arrested an undisclosed number of journalists. The only 

published newspaper is the state-owned daily Hadas Eritrea. Daily radio (the Voice of the Broad 

Masses of Eritrea) and television (ERI-TV) broadcasts made in local languages also are 

controlled by the government. 

Foreign Relations: When Eritrea gained independence in 1993, it enjoyed good relations with 

its regional neighbors and the goodwill of the international community. A little more than a 

decade later, Eritrea is increasingly isolated from its neighbors and the international community. 

Eritrea’s relations with Ethiopia are strained by territorial disputes and relations with Sudan, by 

political problems. Relations with Yemen warmed considerably in 2004, when President Isaias 

visited Sana, and the two countries concluded agreements in areas such as cultural exchanges, 

security, and trade. Although relations with European nations, including Italy, Germany, 

Norway, and the Netherlands, have been close in the past, they have chilled in the wake of the 

Eritrean government’s crackdown on internal dissent in 2001 and the closure of the independent 

press. At present, relations with the United States focus on resolving the border dispute with 

Ethiopia and cooperation on counterterrorism. Relations with Ethiopia, once close and mutually 

beneficial, are extremely tense, as the border dispute between the two nations has yet to come to 

a full and peaceful resolution. 

Membership in International Organizations: Eritrea is a member of a number of international 

organizations, among them the African, Caribbean, and Pacific Group of States, African 

Development Bank, African Union, International Bank for Reconstruction and Development 

(World Bank), International Criminal Court, International Finance Corporation, InterGovernmental Authority on Development, International Criminal Police Organization, 

International Monetary Fund, International Maritime Organization, United Nations, and World 

Health Organization. 

Major International Treaties: Eritrea is a party to the Chemical Weapons Convention, 

Convention for the Pacific Settlement of International Disputes, Convention on Biological 

Diversity, Convention on the International Trade in Endangered Species of Wild Flora and 

Fauna, International Convention on the Elimination of All Forms of Racial Discrimination, 

Treaty on the Non-Proliferation of Nuclear Weapons, United Nations Convention Against Illicit 

Traffic in Narcotic Drugs and Psychotropic Substances, United Nations Convention on 

Desertification, and United Nations Framework Convention on Climate Change. Eritrea is not a 

party to the Conventions on Biological Weapons or Conventional Weapons. 

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Library of Congress – Federal Research Division Country Profile: Eritrea, September 2005 

NATIONAL SECURITY 

Armed Forces Overview: Following its independence from Ethiopia in 1993, the Eritrean 

government planned an armed forces strength of around 30,000. By the late 1990s, the armed 

forces had grown to 50,000 troops, and with the start of hostilities with Ethiopia, the army

expanded dramatically, to nearly 300,000. A demobilization of about 50,000 soldiers took place 

in 2003, although aggressive efforts to round up men aged 18 to 40 who were avoiding national 

service continued as lingering tensions with Ethiopia failed to reach a peaceful resolution. Eritrea 

still has the second largest army in Africa. According to the International Federation of Red 

Cross and Red Crescent Societies, an estimated 1 million antipersonnel mines remain in Eritrea, 

approximately 400,000 of which were laid by Eritrean and Ethiopian forces during the 1998–

2000 conflict. 

Foreign Military Relations: Eritrea’s government generally is not favorably disposed to 

multilateral institutions, and relations with neighboring Ethiopia and Sudan are poor. Eritrea has 

had a close security relationship with China since independence. In early 2005, security 

cooperation with Yemen began with the signing of a joint security agreement and the creation of

a joint ministerial committee. U.S. military cooperation with Eritrea, suspended during the war 

with Ethiopia, has resumed on a modest basis. 

External Threat: The continuing border dispute with Ethiopia represents the most immediate 

and clear external threat to Eritrean security and stability. Relations with Sudan also remain 

tense, as for the past decade Khartoum has accused Asmara of supporting rebel groups in 

southern, eastern, and western Sudan. In turn, Asmara accuses Khartoum of backing the Eritrean 

Islamic Salvation Movement (Eritrean Islamic Jihad) in attacks on local and Western targets in 

Eritrea. 

Defense Budget: In 1997 Eritrea’s defense budget was US$88 million, or 13.6 percent of gross 

domestic product (GDP). Defense spending skyrocketed during the war with Ethiopia, peaking in 

1999 at US$271 million, a staggering 38.5 percent of GDP. Since the 2000 cease-fire, defense 

spending has declined, but it remained a heavy burden in 2002 (the last year for which figures 

are available) at US$150 million, or 25.7 percent of GDP. 

Major Military Units: The Eritrean army has four corps with 20 infantry brigades, one 

commando division, and one mechanized brigade. 

Major Military Equipment: The Eritrean army has an estimated 150 main battle tanks, 40 

reconnaissance vehicles, 40 armored infantry fighting and personnel vehicles, 100 pieces of 

towed artillery, 25 pieces of self-propelled artillery, 35 multiple rocket launchers, 100+ mortars, 

200 antitank guided weapons, and 70 air-defense guns. The navy has one missile craft, seven 

inshore patrol boats, and three amphibious vehicles of unknown serviceability. The air force has 

18 combat aircraft of unknown serviceability, including MiG–21s, MiG–23s, and MiG–29s. The 

air force is thought to have approximately 15 training, transport, and armed helicopters. 

Military Service: National Service is compulsory for a term of 16 months, including four 

months of military training. Since 1998, however, military service has often been extended 

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Library of Congress – Federal Research Division Country Profile: Eritrea, September 2005 

indefinitely for men aged 18 to 40 and childless women aged 18 to 27. In 2005 men aged 40 to 

60 in the major towns were recalled for several weeks of compulsory civil defense training. 

Paramilitary Forces: None. 

Foreign Military Forces: The United Nations Mission in Ethiopia and Eritrea has some 3,300 

troops inside a 25 kilometer-wide zone along the border with Ethiopia. 

Police: Reliable estimates on the size of the Eritrean police force are not available. 

Insurgent Forces: The Eritrean National Alliance (ENA) is a 3,000-strong organization of 10 

opposition groups. It was established in Khartoum in 1999, in part as an attempt by Sudan to 

retaliate against Eritrean support for the National Democratic Alliance, a Sudanese opposition 

group. The following groups belong to the ENA: the Eritrean Liberation Front, the Eritrean 

People’s Conference, the Eritrean Islamic Salvation Movement, the Eritrean Liberation FrontRevolutionary Council, the Eritrean Liberation Front-National Council, the Eritrean People’s 

Democratic Liberation Front, the Eritrean Revolutionary Democratic Front, the Democratic 

Movement for the Liberation of Kunama/Eritrea, the Eritrean Democratic Resistance Movement 

Gash-Setit, and the Eritrean Initiative Group. These groups are a mix of liberation organizations 

marginalized during the struggle for independence, ethnically based groups, and the Sudansponsored Eritrean Islamic Salvation Movement (Eritrean Islamic Jihad). All are based in Sudan, 

from where some stage occasional and mostly ineffectual raids into western Eritrea. The strength

of another group operating in Eritrea, the Red Sea Afar Democratic Organization, currently is 

unknown. 

Human Rights: According the U.S. State Department, Eritrea is a one-party state in which 

presidential and legislative elections have been repeatedly postponed, the judiciary is weak, and 

constitutional provisions for democratic freedoms have yet to be implemented. Western 

observers characterize the Eritrean government’s human rights record as poor, and note that it 

continues to commit serious abuses. Security forces are responsible for unlawful killings, and 

there are persistent reports of torture and physical abuse of prisoners. Arbitrary arrests and 

detentions continue, and an unknown number of persons have been detained without charge for 

their political views. In general, freedom of speech and the press are severely constrained, and 

freedom of assembly, association, movement, and religion also are restricted. Discrimination and 

violence against women remain social problems, and the practice of female genital mutilation is 

widespread. Social discrimination against members of the Kunama group continues, as do 

government restrictions of workers’ rights. 

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