ABOUT ERITREA

Eritrea is a country located in the Horn of Africa with a strategic coastline along the Red Sea. It shares borders with Sudan, Ethiopia, and Djibouti. The capital city is Asmara, known for its Italian colonial architecture and cultural heritage. Despite its relatively small size, Eritrea holds immense geopolitical and economic potential due to its mineral wealth and maritime access. The currency used in Eritrea is the Nakfa (ERN), and the country is classified as a Low-Income country by the World Bank, though it is gradually working toward infrastructural and industrial development.

As of 2023, Eritrea’s estimated population stands at approximately 3.6 million people. The official languages are Tigrinya, Arabic, and English, with Tigrinya being the most widely spoken. The majority of the population follows Christianity and Islam.

Eritrea currently has one major international airport – Asmara International Airport – which connects to regional hubs. The country also has several functional ports such as the Port of Massawa and the Port of Assab. These ports are strategically important for trade in the Red Sea region and offer excellent opportunities for logistics and shipping-related businesses.

The corporate tax rate in Eritrea stands at 30%, while the sales tax or VAT ranges from 5–10%. The business environment is regulated by the Investment Proclamation and Commercial Code of Eritrea. Foreign investors are permitted to establish businesses in multiple sectors with varying ownership limits. Opesh Group provides complete support for Due Diligence, company registration, licensing, property rentals, and business development in Eritrea.

According to the Eritrean Investment Proclamation, investors can register businesses in the form of Limited Liability Companies (LLCs), Joint Ventures, Representative Offices, or Partnerships. In key sectors like mining and infrastructure, the government offers investment incentives including tax holidays and import duty exemptions.

Types of Businesses That Can Be Started in Eritrea:

Mining – Eritrea is rich in minerals like gold, copper, zinc, and potash. Mining is the country’s leading sector, and the government is actively encouraging foreign investment. Existing mines such as Bisha have attracted multinational interest.

Agriculture & Agro-processing – Agriculture remains a key livelihood in Eritrea. With fertile land and access to the Red Sea, investors can consider growing and processing crops like sorghum, barley, fruits, and vegetables.

Fisheries & Seafood Processing – The Red Sea coast offers immense potential for the fishing industry. Investment opportunities exist in fish processing, packaging, and export to international markets.

Renewable Energy – Eritrea has significant potential for solar and wind energy. With limited access to consistent electricity in rural areas, there is high demand for off-grid solar and clean energy solutions.

Infrastructure & Construction – The government is focused on rebuilding roads, housing, and public buildings. Construction companies and suppliers of equipment and raw materials will find good business opportunities here.

Tourism & Hospitality – Asmara, Massawa, and Dahlak Islands hold tourism potential due to historical and ecological attractions. There is a need for hotels, tour operators, and tourism infrastructure.

Healthcare – Eritrea’s healthcare sector is under-resourced. There is room for investment in clinics, diagnostics, pharma distribution, and medical equipment supply.

ICT & Telecom – Internet penetration is low but growing. The government has begun liberalization efforts, and there is opportunity in mobile services, broadband, and digital infrastructure.

Advantages of Starting a Business in Eritrea:

• Untapped Sectors: Many industries in Eritrea are underdeveloped, offering first-mover advantage to new investors.

• Strategic Location: The Red Sea coast provides access to major shipping routes, making it a gateway for regional trade.

• Government Support: The Eritrean government is offering incentives such as tax breaks, land leases, and joint ventures in key sectors.

• Low Competition: Eritrea’s business environment has not yet been saturated by international players, especially in manufacturing, healthcare, and ICT.

• Rich Natural Resources: Eritrea’s mineral wealth offers a highly profitable avenue for long-term investments.

• Young and Trainable Workforce: With a young population, companies can benefit from hiring and training local talent.

Business Opportunities for Indians in Eritrea:

Indian entrepreneurs and companies can tap into Eritrea’s developing economy across multiple sectors:

• Pharmaceuticals: Manufacturing and distribution of generic medicines and healthcare products.

• Agri-machinery: Export and local assembly of tractors, harvesters, and irrigation systems.

• Construction Materials: Supply of cement, steel, tiles, and construction equipment.

• Textiles and Garments: Manufacturing for local use and exports.

• Solar Energy Solutions: Panels, batteries, and installation services for rural electrification.

• IT and Education: Digital learning platforms, e-governance solutions, and vocational training.

Imports & Exports:

Major Exports from Eritrea to India:

• Minerals (Gold, Zinc)

• Seafood

• Leather and animal products

Major Imports to Eritrea from India:

• Pharmaceuticals

• Machinery

• Construction materials

• Electronics

• Agricultural tools and seeds

• Food grains and spices

Manufacturing:

Manufacturing in Eritrea is still in a nascent stage. Most consumer goods are imported, creating an opportunity for setting up local units in:

• Packaged foods and beverages

• Cement and bricks

• Furniture and home appliances

• Textiles and garments

• Agricultural processing

Mining:

Mining is Eritrea’s most lucrative sector. Investors can enter into:

• Gold Mining

• Copper & Zinc extraction

• Potash mining projects

• Precious stones exploration

The government issues mining licenses and provides support under the Ministry of Energy and Mines. Opesh Group can guide you through the complete registration, licensing, and operational setup for your mining business in Eritrea.

Major Indian Companies Active in Eritrea:

• Indian pharma distributors operate via local partners.

• Indian engineering and construction firms are exploring public infrastructure projects.

• Indian education consultancies are opening pathways for student and vocational training.

GDP = $2.3 billion (2023 estimate)

GDP Growth = 2.1%

Ease of Doing Business Rank = Not Ranked (Data Unavailable)

GDP Per Capita = ~$650 (2023)

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