recently, the Eritrean Government was not overly keen to invite foreign
investors to Eritrea because the infrastructure base necessary to support
such investment was not available. Although inadequate for present-day
needs, whatever infrastructure was inherited from the colonial past was
totally destroyed or seriously damaged during the long liberation struggle.
Under these circumstances the Eritrean Government considered the rehabilitation,
expansion and the building of new infrastructure its primary economic
task, a goal which it pursued so diligently that today Eritrea can boast
adequate and reliable electric supply, a network of good roads, airports
of international standard, reliable communications networks, increased
municipal water supply, adequate port and cold storage facilities, administrative
and residential buildings etc
The Government has also put in place
institutions and laws that many consider to be business-friendly. That
is why today the Eritrean Government feels confident to invite investors
to consider the following sectors:
Eritrea is Africa's youngest nation with a history as old as humanity. Its rich cultural heritage and its widely varying natural beauty, coupled with its friendly and honest people, make it a delightful place to visit. Asmara, with its old-Italian-style buildings, multiple churches and mosques, is one of the best-preserved colonial cities in Africa.
Seacoast & Islands: The coast north of Massawa and between Massawa and Assab offers vast stretches of unspoiled beach front for bathing, snorkeling, and a wide range of water sports. For the more intrepid traveler, the coastal plain offers an unusual habitat for humans and for wildlife.
The many offshore islands of the Dahlak Archipelago and those near Assab have some of the best scuba diving sites in the world, from the pristine reefs of Dissei, Dur Gaam and Madote to the numerous underwater shipwrecks from all periods of Eritrean history. Sport fishing is also popular and usually rewarding.
The largest of the islands, Dahlak Kebir, offers opportunities to visit Afar fishing villages or ancient Turkish and Islamic ruins after an afternoon safari to catch sight of whales, humpback dolphins, the endangered dugong or one of five turtle species found in Eritrean waters.The extended Red Sea coast and numerous offshore islands offer exquisite, unspoiled beaches and some of the best scuba diving sites in the world. Inland, Eritrea boasts magnificent mountain scenery, dotted with picturesque traditional villages and ancient archeological sites.
That is why the Eritrean Government feels that there exist ample opportunities for investors interested in any sector of the hospitality industry, e.g. hotels, motels, restaurants. The Ministry of Tourism welcomes investors in any of these sectors.
Eritrea's mining sector development strategy is focused on promoting domestic and foreign direct investment in prospecting, exploring and development. To facilitate this, the Ministry of Energy and Mines has conducted geological surveys of promising sites and indicated a willingness to share the risks associated with prospecting and exploration. Mining laws stipulate the terms and conditions that investors have to fulfill and the environmental requirements to which they are subject.
|ERITREAN FREE ZONES|
Eritrean Government has started a free zone program in Eritrea. The objective
of the program is to contribute to the development of an internationally
competitive business sector in Eritrea by creating an environment in which
domestic and foreign investors will be encouraged to invest in export-related
business activities. The Government believes that the program will, inter
(a) create employment opportunities,
(b) extend the technology base
(c) help develop the technical and managerial skill of the Eritrean Workforce,
(d) expand Eritrea's external business and marketing contacts,
(e) help build industrial projects of all kinds and storage facilities for raw and processed materials, (excluding storage of drugs).
The first free zone has been set up at the port of Massawa and is ready to accept investments which contribute to the achievement of the above objectives. Investors will find that the Free Zone Program is extremely business-friendly as the following articles of the Eritrean Free Zones Proclamation indicate:
2. Any investor engaged in trading or industry or storage or other activities in the free zone may not pay any tax including taxes on his or her profits or bank interests from accounts or bank business documents or shares.
32.Repatriation of Income and Profits
2. Investors are permitted to deal in all currencies, i.e. to transfer, receive, pay open letters of credit and engage in all types of bank activity without any restriction.
3. The Bank of Eritrea shall be consulted by the Authority about the terms and conditions referred to in sub-Article (2) of this Article.
4. The Bank of Eritrea shall supervise the operation of the foreign currency accounts. It shall be empowered to request any information it considers necessary from the account holder or the concerned bank. For more information on free zones, please contact the Eritrean Embassy in New Delhi (Tel 011-26146336, 26140398)