COMESA Promotes Eritrea Investment Opportunities

COMESA Regional Investment Agency Identified Investment Opportunities in Eritrea that have regional impacts
COMESA Regional Investment Agency Identified Investment Opportunities in Eritrea that have regional impacts

By TesfaNews,

As part of its endeavor to identify and promote investment opportunities with special focus on projects that have regional impact, the Regional Investment Agency (RIA) of COMESA identified the following potential investment opportunities in Eritrea and presented them in summary form. 

Comprised of 14 African states, the Common Market for Eastern and Southern Africa (COMESA), at which Eritrea is a member, has a fully-functional Free Trade Area offering investors duty-free access to a market of over 445 million people, i.e. a market 2.5 times bigger than Brazil, 1.5 times bigger than the USA, 3.5 times bigger than Mexico, almost 3 times bigger than Japan, almost 2 times bigger than Indonesia, etc.

Eritrea:


The State of Eritrea, is a country in the Horn of Africa. The capital is Asmara. It is bordered by Sudan in the west, Ethiopia in the south, and Djibouti in the southeast. The northeast and east of the country have an extensive coastline on the Red Sea, directly across from Saudi Arabia and Yemen. The Dahlak Archipelago and several of the Hanish Islands are part of Eritrea. Eritrea’s size is approximately 124,320 km2 with an estimated population of 5 million. The history of Eritrea is tied to its strategic position on the Red Sea littoral, with a coastline that extends more than 1,000 km. Many scientists believe that it is from this area that anatomically modern humans first expanded out of Africa.

Eritrea’s economy is largely based on subsistence agriculture, with 80% of the population involved in farming and herding. Therefore a strategic plan for rural development is the solution to speed up the developing to establishing a strong agriculture base; capable of providing abundant raw materials to industrial units; and exporting agricultural products to states around the Arabic Gulf.


There is in the tourism industry sector a huge potential to attract foreign investment. The coastal waters over which Eritrea has exclusive fishing rights constitute 52,000 square kilometers of probably the richest and for the most unexploited waters of the Red Sea. That represents a tremendous opportunity to develop: Fishing industry and Tourism.

The scenic and topographic diversity of the country as well as its history are assets to developing a strong tourists’ destination. The coastline of pristine sandy beaches, the many islands and the clear water with abundant marine life makes development of recreational facilities a viable possibility.

Eritrea developed its transportation infrastructure by asphalting new roads, improving its ports, and repairing war-damaged roads and bridges as a part of the Warsay Yika’alo Program. The most significant of these projects was the building of a coastal highway of more than 500 km connecting Massawa with Asseb as well as the rehabilitation of the Eritrean Railway. The rail line now runs between the Port of Massawa and the capital Asmara.

Eritrea Investment Center


The Eritrea Investment Center, a department functioning under the Ministry of Trade and Industry is a one-stop shop for promoting and facilitating investments in Eritrea. The center is committed to support and encourage investment by assisting investors to acquire the necessary legality and by way of incentives and guaranties.

Investment Opportunities:


1./ Dairy / Milk Cows 

Project Description                                 A Private ownership project that would be amongst the very first in this sub-sector due to the sector being in the first stages of
development
Value PropositionInvestment cost: USD 80 million
Incentives on inputs and medical supply
Funding available at EDIB (Eritrea Development and Investment Bank) at low interest
Contact Eritrea Investment Centre

 

2./ Massawa International Airport 

Project Description                                 Large airport establishment
One of the major Airports in the country
The project is complete, yet the companies which undertook the project have no international license. Therefore the Airport still does not host international flights
Value PropositionInvestment Cost: USD 60 million
Incentives on taxation, provision of heavy machinery, provision of supplies the market fail to provide and easy access to government loans
Contact Eritrea Investment Centre

 

3./ Mining – Precious Metals 

Project Description                                 Silver and Gold Explorations
The Subsector is being developed with on-going further explorations
The Project ownership is preferably for the private secto
Value PropositionInvestment Cost : USD 80 million
Incentives on exploration rental fees, fiscal terms, and free geological data
Contact Eritrea Investment Centre

 

4./ Service Rendering Establishments

Project Description                                 Large hotel establishment
One of the first major hotels in the country
Preferred type of investment: Private Sector
Value PropositionInvestment cost: USD 82 million
Incentives on provision of land, swift licensing procedure, nominal custom duty (2%) for capital goods, and easy access to government loans
Funding available at HCBE and EDIB (Eritrea Development and Investment Bank) at low interest
Contact Eritrea Investment Centre

 

5./ Housing Complex 

Project Description                                 Large housing complex establishment
Preferred type of investment: Private Sector / PPP
Value PropositionInvestment cost: USD 270 million
Incentives on land and its accessibility, provision of cheap labour, provision of heavy machinery, provision of supplies the market fail to provide and easy access to government loans
Funding available from Government and Housing and Commercial Bank of Eritrea
Contact Eritrea Investment Centre

 

Leading Investors

  • Nevsun Resources – Canada
  • Sunridge Gold – Canada
  • Northern Mining Explorations – Canada
  • Oil and Gas Development (OGDCL) – Pakistan

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Source: COMESA – RIA
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