• Analysis and Studies
• Eritrea: a look at the market

The name Eritrea comes from the Greek term “Erythra Talassa” meaning  Red Sea, the water body boarding the country. Whereas the capital Asmara is named after the women who decided to unite the four clans that lived in that area in order to maintain peace: in the Tigrinya language it means “they (referred to the four women) made them unite”.

Eritrea was an Italian colony until 1941, when it came under British administrative control, which ended in 1952: that year the United Nation declared it an autonomous region within the Ethiopian federation. In 1991 the thirty-year fight for independence came to an end, culminating in a successful 1993 referendum.

The flag consists of two right triangles (green and blue) that are divided by an isosceles triangle (red), which resembles the shape of the country. The colors have different meanings: green stands for the agriculture economy, blue for the sea and maritime resources and red for the blood shed in the fight for freedom.

A gold olive branch encircled by a gold wreath with thirty leaves, representing the years of armed struggle for independence, is also present on the hoist side.

In 2022 Eritrea was 163^rd economy in the world in terms of total exports and the 195^th in total imports.

Eritrea has a high level of specialization in Zinc Ore ($310M), Copper Ore ($192M), Non-Knit Men's Undergarments ($1.06M), Gold ($263M), and Wheat ($14.9M).

The most exported product was Zinc Ore with a trade of $310M, ahead of Gold ($263M), Copper Ore ($192M), Wheat ($14.9M), and Non-Knit Women's Suits ($4.08M), with China being the major destination (52.2%), followed by United Arab Emirates (33.3%), South Korea (9.42%), Japan (1.97%), and Madagascar (1.89%).

The export economy heavily relies on a few key products, specifically Zinc Ore, Gold and Copper Ore leading to a lack of diversification: each of them is mainly destinated to a single country, except for Non-Knit Women’s Suits, which are sent to multiple countries and do not rely on the main destination markets.

We can see a dependence on raw materials over processed or high-value products, as well as a predominant focus on Asian and Middle Eastern markets, whereas European countries are only involved in the export of lower-value goods.

1. Zinc Ore (39.2%): 71% China, 24% South Korea, 4.99% Japan
2. Gold (33.3%):100% United Arab Emirates
3. Copper Ore (24.3%): 100% China
4. Wheat (1.89%): 100% Madagascar
5. Non-Knit Women's Suits (0.52%): 83.9% Croatia, 4.72% Poland, 3.65% Germany, 1.19% Turkey, 0.27% United Arab Emirates

Whereas the most imported products were Other Sea Vessels with a trade of $29.3M, followed by Sorghum ($27M), Wheat Flours ($22.7M), Other Edible Preparations ($15.4M), and Refined Petroleum ($12.9M), with China being the most common source (33.6%), ahead of United Arab Emirates (25.9%), Turkey (12.2%), United States (7.15%), and India (3.98%).

 Unlike exports, the imports are more diversified as far as concerns products: however, they similarly rely on a few key countries as sources for specific products, suggesting a need for diversification in order to reduce risks associated with supply chain disruptions.

The types of imported products (such as infrastructure-related items, agricultural goods, and energy resources) highlight the economy's priorities in infrastructure development, food security, and energy supply, indicating a focus on sustaining essential services and development.

1. Other Sea Vessels (6.65%): 100% China
2. Sorghum (6.12%): 100% United States
3. Wheat Flours (5.16%): 99.6% Turkey, 0.42% United Arab Emirates
4. Other Edible Preparations (3.49%): 92.6% United Arab Emirates, 5.05% France, 1.91% Kenya
5. Refined Petroleum (2.94%): 88.8% United Arab Emirates, 4.6% Turkey, 3.92% Egypt, 1.78% Sweden

 Between 2021 and 2022 the country which saw a fastest growth in exports was United Arab Emirates with an increase of $93.8M, ahead of China ($56.9M) and Japan ($15.4M).

1. United Arab Emirates: from $169M to $263M
2. China: from $355M to $412M
3. Japan: from $57.2k to $15.5M

 Whereas the fastest growing importer was China with an increase of $79.5M, followed by Turkey ($30.1M) and United States ($12.9M).

1. China: from $68.7M to $148M
2. Turkey: from $23.7M to $53.7M
3. United States: from $18.6M to $31.5M

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