Tag Archives: Micro-finance

African Economic Outlook 2014: Eritrea’s Private and Financial Sector

The low level of financial development in Eritrea has continued to limit investment opportunities in sectors like agriculture, mining, tourism and fisheries, which have potentially high regional spill-over effects to spur economic transformation and foster inclusive and sustainable growth.

By Magidu Nyende and Luka Okumu,

A combination of restrictive government policies, shortages of foreign exchange, declining remittances and heavy government borrowing from the banking sector has severely inhibited private-sector activity and development in Eritrea. Consequently, the private sector remains small, underdeveloped and crowded out by the state’s growing role in the economy.  Continue reading African Economic Outlook 2014: Eritrea’s Private and Financial Sector