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Eritrea’s Thriving Industries: A Key to the Country’s Economic Growth

Introduction

Asmara, Eritrea - As the capital and economic pulse of Eritrea, industries play a crucial role in driving the country’s economy forward. With a gross domestic product (GDP) of $6.1 billion in 2017, representing a growth of 3.4% from 2016, Eritrea is a developing nation with vast untapped potential.

Agriculture: The Backbone of Eritrean Economy

  • Agriculture is the primary source of employment for the majority of Eritreans, with around 80% of workers engaged in the sector.
  • Despite its significant contribution to the country’s GDP, agriculture remains largely subsistence-based, with most crops grown for local consumption.
  • The government has implemented several projects to improve agricultural productivity and reduce reliance on foreign aid.

Mining: Eritrea’s Rich Mineral Resources

  • Eritrea is rich in mineral deposits, including gold, potash, and limestone.
  • Nevsun Resources, a Canadian mining company, holds the license to mine in the Bisha mine, which is 93 miles west of Asmara.
  • The country’s mining sector faces significant challenges, including landmines and infrastructure issues.

Energy: Powering Eritrea’s Economic Growth

  • The energy industry is crucial for Eritrea’s economic development, with the country relying on imported oil and natural gas due to its lack of local production capacity.
  • The government has partnered with Arab countries to develop an 88-megawatt power plant in Asmara.

Fishing: Eritrea’s Underutilized Coastal Resources

  • Eritrea’s coastline stretches for approximately 1,388 miles, offering vast opportunities for fishing and fish farming.
  • However, the sector has been underutilized due to the country’s history of conflict and lack of investment in infrastructure.

Economic Growth: Eritrea’s Promising Future

  • The World Bank predicts that Eritrea’s economy has significant potential for growth, driven by its untapped mineral reserves and oil deposits.
  • The government is partnering with international organizations to develop the country’s economy, including implementing new tax policies and investing in education.

Conclusion

In conclusion, Eritrea’s industries have the potential to drive economic growth and development in the country. With a focus on improving agricultural productivity, developing the mining sector, increasing energy production, and utilizing its coastal resources, Eritrea is poised for significant economic progress in the years to come.