The Birr has been phased out in favour of the Nafka. Export and of local currency is prohibited, unless prior arrangements have been made. The Birr may be imported and exported without completing a currency declaration form. Economy With independence from Ethiopia on 24 May 1993, Eritrea faced the economic problems of a small, desperately poor country. The small industrial sector consists mainly of light industries with outmoded technologies.
Government revenues come from custom duties and taxes on income and sales.
Road construction is a top domestic priority. In the long term, Eritrea may benefit from the development of offshore oil, offshore fishing, and tourism. Eritrea's economic future depends on its ability to master fundamental social and economic problems, e.g., by reducing illiteracy, promoting job creation, expanding technical training, attracting foreign investment, and streamlining the bureaucracy. Eritrea also has a strategic geopolitical position along world's busiest shipping lanes. Eritrea retained the entire coastline of Ethiopia along the Red Sea upon independence from Ethiopia.