Financial Crime World

Eritrea’s Shadow Economy: Human Trafficking, Arms Smuggling, and Financial Crimes Thrive in Isolation

Despite being under international sanctions and border closures, Eritrea’s ongoing political instability has created a fertile ground for various illicit activities to thrive. This article will delve into the issues of human trafficking, arms smuggling, and financial crimes that plague the country.

Human Trafficking: A Growing Concern

Eritrea’s unchanged human trafficking dynamic is driven by the government’s exploitation of its citizens. Thousands are forced into indefinite or arbitrary periods of military or national service, making them vulnerable to being trafficked across borders to Sudan, Ethiopia, and Djibouti. High-ranking military officials are accused of being complicit in these activities.

Key Facts:

  • Thousands of Eritreans are forced into military or national service
  • Victims are vulnerable to human trafficking across borders
  • High-ranking military officials are accused of being complicit

Arms Smuggling: A Threat to Regional Security

Eritrea has served as a trans-shipment point for arms smuggling to embargoed states like Sudan, South Sudan, and Somalia. The Eritrean army is reportedly a significant recipient of weapons from Ethiopia, despite the government’s denial of these allegations.

Key Facts:

  • Eritrea serves as a trans-shipment point for arms smuggling
  • Weapons are smuggled to embargoed states in the region
  • The Eritrean army receives weapons from Ethiopia

Financial Crimes: A Growing Concern

The lack of transparency and accountability within the government has led to financial crimes becoming more prevalent. With a command economy controlled by the ruling party, the People’s Front for Democracy and Justice (PFDJ), severe economic restrictions have led to the growth of hawala and black market exchanges.

Key Facts:

  • Financial crimes are on the rise in Eritrea
  • Hawala and black market exchanges are common
  • Corruption is rampant

Other Illicit Activities

Eritrea’s isolation has also led to a surge in other illicit activities, including:

  • Illegal Fishing: Eritrea is becoming a hotspot for illegal, unreported, and unregulated fishing.
  • Gold Smuggling: The mining sector, particularly gold, comes under scrutiny as smuggling activity has increased due to Western sanctions.
  • Cyber-Dependent Crimes: Limited data exists on these crimes, but they are believed to be on the rise.

Conclusion

Eritrea’s isolation and authoritarian government have created a culture of impunity that enables illicit activities to flourish. International intervention and pressure can make a significant impact in combating these issues and bringing accountability to the government and its officials.

Call to Action:

  • The international community must put pressure on the Eritrean government to combat human trafficking, arms smuggling, and financial crimes.
  • Efforts should be made to increase transparency and accountability within the government.
  • Support for civil society organizations working to promote human rights and good governance in Eritrea is essential.