Eritrea

Eritrea is a beneficiary of the EU's "Everything but Arms" (EBA) scheme for least developed countries. With a per-capita income of about $ 610 (2011, most recent data), the World Bank classifies Eritrea as a low-income economy. Preferential imports from Eritrea have been comparatively constant in recent years and amounted to about €5,2 million in 2022.

What is the EBA?

The “Everything but Arms”(EBA) scheme is a permanent arrangement covering Least Developed Countries (LDC’s) as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products (7200 products in total) originating in LDC’s except for arms and ammunition. Different from the Standard GSP and GSP+, LDC’s are not excluded from the scheme if they benefit from other preferential arrangements.

Eritrea flag

At a glance: EBA beneficiaries' preferential imports to the EU

group

3,68 M

Population

account_balance
Presidential Republic

Government

trending_up

8.70%

GDP Growth

equalizer

7,40%

Inflation

money

$ 2,06 B (2011)

GDP

3 -

Freedomhouse index

5 -

ITUC Global Rights Index

31.7 ^

Environmental Performance Index

Facts about Eritrea's economy

Strategic Location

Eritrea is strategically located in Eastern Africa bordering the Red Sea, one of the world’s busiest shipping routes. It currently possesses two ports along its over 1000 km long coastline. Likewise, Eritrea is in close proximity to major oil markets on the Arabian peninsula.

Export Products

Zinc and copper ores dominate Eritrea's export sector, followed by apparel and clothing articles and malt beer.

Trade Partners

Eritrea's most important trading partner is China which accounts for a share of 57%. South Korea ranks second, especially as export destination, with a share of 14.7% ot total exports (versus China's 80.2%). The United Arab Emirates is the second most important import market for Eritrean products. Most imports originate from China.

Economic Structure

Small-scale farming, mainly for subsistence purposes, remains the cornerstone of the Eritrean economy and while it only contributes a small fraction to the GDP it supports the livelihood of about 80% of the population. The most prominent products are different types of grain, sesame seeds, vegetables, cotton, tobacco, and sisal. The manufacturing sector mainly centres around the processing of agricultural products, textiles, and leather as well as mining.

Usage of EBA Preferences

About 79% of overall EU imports from Eritrea make use of EBA preferences. The preference utilisation rate, which represents the ratio of preferential imports to GSP eligible imports, currently stands at 82.3%.

Trade with the EU

Total trade with the EU amounted to € 52 million in 2022. With a share of 5.4%, the EU is Eritrea's fifth most important trading partner.

Eritrea and the EU (2022)

Imports from Eritrea by product section

Imports from Eritrea over time (in € m)

ERITREA AND THE EU’s GSP

Economic Impact

97%

A very large share of Eritrea's exports to the EU market are eligible for preferences granted by the EU's EBA arrangement.

82.30%

Eritrea makes considerable use of the EBA. The preference utilisation rate currently stands at 82.3%.

Preference utilisation and export diversification

Eritrea's imports to the EU

Preference Utilisation vs. total eligible imports

Eritrea’s preference utilisation rate has been comparatively high over the last years, more than 90% of eligible export products take advantage of EBA preferences. This is mainly driven by a high uptake of preferences in the most prominent export sections, textiles and clothing. However, only one product section, apparel, was imported using EBA preferences in 2022.

The largest product sections under EBA

Eritrea’s exports under the EBA remain highly concentrated on apparel and textiles, which account for 100% of all exports under the EBA.

SUSTAINABLE DEVELOPMENT

The preferential access to the EU market granted by the EBA scheme is not bound to the ratification of international conventions. Nonetheless, Eritrea maintains a very high level of ratification of international conventions. The country has ratified 14 out of 15 core conventions on human rights and labour standards. Furthermore, Eritrea has ratified 8 international conventions on the protection of the environment and 3 good governance conventions.

Core international conventions on human rights and labour standards

Ratified

  • International Convention on the Elimination of All Forms of Racial Discrimination (1969)
  • International Covenant on Civil and Political Rights (1976)
  • International Covenant on Economic Social and Cultural Rights (1976)
  • Convention on the Elimination of All Forms of Discrimination Against Women (1981)
  • Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (1987)
  • Convention on the Rights of the Child (1990)
  • Convention concerning Forced or Compulsory Labour, No 29 (1930)
  • Convention concerning Freedom of Association and Protection of the Right to Organise, No 87 (1948)
  • Convention concerning the Application of the Principles of the Right to Organise and to Bargain Collectively, No 98 (1949)
  • Convention concerning Equal Remuneration of Men and Women Workers for Work of Equal Value, No 100 (1951)
  • Convention concerning the Abolition of Forced Labour, No 105 (1957)
  • Convention concerning Discrimination in Respect of Employment and Occupation, No 111 (1958)
  • Convention concerning Minimum Age for Admission to Employment, No 138 (1973)
  • Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, No 182 (1999)

Not Ratified

  • Convention on the Prevention and Punishment of the Crime of Genocide (1948)

Additional Conventions

  • Convention on International Trade in Endangered Species of Wild Fauna and Flora (1973)
  • Montreal Protocol on Substances that Deplete the Ozone Layer (1987)
  • Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (1989)
  • Convention on Biological Diversity (1992)
  • The United Nations Framework Convention on Climate Change (1992)
  • Cartagena Protocol on Biosafety (2000)
  • Stockholm Convention on persistent Organic Pollutants (2001)
  • Kyoto Protocol to the United Nations Framework Convention on Climate Change (1998)
  • United Nations Single Convention on Narcotic Drugs (1961)
  • United Nations Convention on Psychotropic Substances (1971)
  • United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)

EU-Eritrea Bilateral Development Assistance

DG INTPA

Access all info about EU-Eritrea relations on the International Partnerships website: https://international-partnerships.ec.europa.eu/countries/eritrea_en

Opportunities in Eritrea

  • Strategic location in close proximity to one of the most frequented shipping routes, further potential through an expansion of port capacities
  • Positive economic prospects over the short to medium term fuelled by the lifting of UN sanctions and the peace agreement with Ethiopia
  • Further potential in the mining sector, particularly with regards to copper, zinc, and Colluli potash
  • Government efforts to improve and enhance vocational training and skill development

Contact points