Eritrea’s Shadow Economy: A Haven for Criminal Activity

As Eritrea seeks to emerge from decades of authoritarian rule, a murky underbelly of criminal activity has taken hold in the Horn of Africa nation. Despite being party to international treaties aimed at combating organized crime, Eritrea’s government-controlled economy and lack of transparency have created an environment conducive to illegal activities.

State-Embedded Criminals

Eritrean authorities are accused of participating in transnational organized crime, with diplomats allegedly facilitating human trafficking. Police and military personnel have been implicated in trafficking along the Sudanese border, while state actors are perceived by most Eritreans as a mafia.

Transnational Networks

Rashaida traffickers, aided by Eritreans, operate along the Eritrea-Sudan border, kidnapping and holding individuals for ransom.
Speculation persists about the involvement of criminal actors from Sudan or Egypt in Eritrean markets.

Authoritarian Governance

Eritrea is controlled by President Isaias Afwerki’s authoritarian regime, which has been in power since 1991. The lack of elections and human rights abuses have created an environment of impunity. The government exercises total control over the economy, making it difficult to track crime dynamics or publish reliable data.

Criminal Justice and Security

Eritrea’s judiciary is not independent, and prison conditions are harsh.
There is no specialized unit to combat organized crime, and corruption and bribery are rampant.
The country shares borders with Ethiopia, Sudan, and Djibouti, but its border control is strict, with a “shoot to kill” policy in place.

Economic and Financial Environment

Eritrea’s cash-based economy makes it vulnerable to money laundering, with informal money transfer systems and insufficient regulatory capacity exacerbating the problem.
The government’s lack of transparency and cooperation with international organizations like the IMF and World Bank have hindered efforts to combat financial crimes.

The Eritrean government has failed to identify, protect, or support victims of trafficking.
There are no proactive mechanisms in place to recognize victims from at-risk groups, and foreign victims are often deported back to their home countries.
The country’s press freedom is non-existent, with journalists facing imprisonment, and independent media outlets shut down.

As Eritrea struggles to rebuild its economy and society, it must address the entrenched criminal activity that has taken hold in the country. Until then, the nation will remain mired in a culture of corruption and impunity.