Eritrea

Eritrea is a country in the Horn of Africa, bordered by Sudan to the west, Ethiopia to the south and Djibouti to the south-east, with a long coastline along the Red Sea to the east. The capital and largest city is Asmara. The population is estimated at around six-million people, comprising nine recognised ethnic groups. Eritrea gained independence from Ethiopia in 1993 following a 30-year war of independence, becoming one of Africa's youngest nations. The economy is largely based on subsistence agriculture, which employs about 80% of the population, alongside mining (particularly gold, copper, zinc and potash), fisheries and some light manufacturing. The currency is the nakfa. Eritrea operates under a highly centralised, single-party presidential republic led by President Isaias Afwerki, who has been in power since independence. The country is not a member of major regional economic blocs such as the African Continental Free Trade Area, reflecting its limited integration into continental trade frameworks. Eritrea's business environment is characterised by extensive state control, limited private-sector activity and restricted foreign investment. International relations have been strained by border disputes, particularly with Ethiopia, though a peace agreement was signed in 2018. The country faces significant development challenges, including international sanctions, limited infrastructure and restricted access to global markets.