Eritrea, Africa’s youngest country, gained its freedom from Ethiopia in 1991 after a 30-year war of liberation and achieved statehood after a referendum in 1993. It triumphed over tremendous odds in a struggle that reduced substantial parts of a once fairly prosperous country to ashes.

Recovery was impeded by a border war with Ethiopia that erupted in 1998 and ended with a UN-sponsored peace agreement in December 2000. Eritrea has liberalized its economy and with the help of foreign investment made remarkable progress while a UN peacekeeping force continues to monitor the temporary security zone on its border with Ethiopia.

Country Profile

As an extension of Ethiopia’s mountains, the Eritrean highlands form a steep escarpment, overlooking a narrow, coastal plain. With an annual rainfall of 500-1,000 mm the escarpment is the most productive agricultural region. The Tekeze River forms part of the border with Ethiopia and drains into the Nile.

The Danakil Depression (130 m below sea level) is one of the hottest places on earth. Nomadic livestock herders occupy the coastal plain. Eritrea’s economic zone in the Red Sea includes more than 350 islands of various shapes and sizes, fringed by coral reefs, with a total land area of 515 sq. miles (1,335 sq km).

Eritrea’s people are of Ethio-Semitic, Cushitic and Nilotic origin. The main language is Tigrinya, spoken by the Tigray-the principal Ethio-Semitic group. Cushitic groups live on both sides of the border with Sudan in the northwest. The Afar (a.k.a. the Adal or Danaki) roam the southern coastal strip.

English is the most widely spoken European language. The Tigray are predominantly Christian, belonging to the Eritrean Orthodox Church. There are sizeable minorities of other Christian denominations and Muslims.

Business Activity

Agriculture

Sorghums, lentils, vegetables, maize, cotton, tobacco, coffee, sisal, livestock, fish.

Industries

Food processing, beverages, clothing and textiles.

Natural Resources

Gold, potash, zinc, copper, salt, potential of oil and natural gas, fish.

Exports

$16.95 million (est. 2007): livestock, sorghum, textiles, food, small manufacturers.

Imports

$577 million (est. 2007): processed goods, machinery, petroleum products.

Major Trading Partners

China, Italy, US, France, Netherlands, Ethiopia, Turkey, Taiwan, Germany.

Source: Les de Villiens, Africa 2009, Ninth Edition (A publication of The Corporate Council on Africa and Business Books International)