The Eritrean government intends to finalize the construction of the long-delayed infrastructure at the Massawa industrial park on the Red Sea coast as it seeks to take advantage of its strategic location.
The multi-million dollar industrial complex is part of the government’s efforts to promote economic development and attract foreign investment by utilizing the Massawa industrial park as the new commercial hub for international trade.
Massawa is known for its strategic location, near the Red Sea and close to international shipping routes. Nearly 20,000 vessels a year pass Eritrea loaded with some 700 million tonnes of cargo — more than 9 percent of the estimated 7.7 billion tonnes carried by global shipping.
Due to its transit capabilities, the Massawa port and airport have already drawn Russia’s interest.
The primary objective of the industrial park in Massawa is, therefore, to foster industrialization by attracting both domestic and foreign investors through the provision of favorable conditions for business operations.
The government had made progress in attracting investors, particularly after President Isaias paid official visits to China and Russia last month. A number of Indian, Israeli, and Dubai-based companies have expressed interest in using this free trade zone, which includes the port and airport.
The park features modern infrastructure and facilities to support various industries. This includes industrial zones, warehouses, factories, utilities, transportation networks, and other necessary amenities. The park is designed to accommodate a wide range of industries, such as manufacturing, processing, and assembly.
It also offers investment opportunities across different sectors, including textiles, agro-industries, food processing, chemicals, construction materials, and more. The Eritrean government, as it successfully promotes mining in the country, provides incentives to attract investors, such as tax benefits, land lease agreements, and streamlined administrative processes.
Once operational, this Massawa industrial park is expected to contribute significantly to the economy by diversifying the country’s economic base, reducing dependence on traditional sectors like agriculture, and enhancing the overall industrial output. By attracting foreign investment, the park aims to create employment, improve infrastructure, and boost export potential. [TN]
