Red Sea

By Kesete Ghebrehiwet

The Southern Red Sea region is a land of opportunities as well as a land riddled with challenges. The putting in place of service rendering institutions in such a hostile climatic area is indeed beyond compare opportunity to the inhabitants of the region. Much of the development undertakings that have been registered in this area of the country require not only huge material costs but resistance of the people who engage themselves towards the realization of a better tomorrow.

Situated in the south east of the port city of Assab, Abo is one of the villages in the Southern Red Sea region. One who travels through this route never hesitates to make a tour and observe the service rendering institutions of that respective locality. Grapping one’s attention, a healthcare center and a kindergarten that are giving services to the inhabitants of Abo, indeed, prompt one to learn the progress that have been registered in the health and education sectors.

Sister Eden Hailu, head of Abo healthcare center, describes the overall healthcare services that have been rendering and particularly the prenatal and postnatal services at nominal prices. She said that giving vaccines to children by visiting their respective locality and conducting health related awareness raising programs have been part of the routine activities of the healthcare center. As the inhabitants of the area have been aware of the benefits of the delivery services that have been rendering at healthcare institution, a number of pregnant women have been availing themselves of the services.

A few meters away but within the premises of the healthcare center one could see a kindergarten which is giving regular pre-school services to the children of Abo and its environs. What is really impressing about the kindergarten is that a pre-school teacher who is in her twenties has been working there for the last 3 years. In these three years, Sister Natsnet Kidane has become fluent speaker of the Afar language. Pointing out that it is really a blessing to teach in a place which enables you to acquire a much different cultural and linguistic knowledge; she expressed her satisfaction to teach the children at ease with their mother tongue and also with a great passion.

Agricultural undertakings of the Abo-Kiloma administrative area are also very encouraging. Taking into account the arid and semi-arid climatic condition of this respective area, it is very easy to understand that conducting such agricultural activities depending on rainy seasons is really a very demanding task. But, farmers around this administrative area are doing their best in cultivating varied types of crops and vegetables. In about 6 heaters, one could see date palm plantations and other crops, vegetables and fruits and other plantations such as watermelon, pepper, tomato, onion, sorghum, maize which are at good condition.

Despite being an arid place, the Abo-Kiloma administrative area is rich in underground water which just requires no more than 2 meters drilling to find fresh water that could be utilized both for agricultural and for household activities. Thus, if the farmers of this locality exert concerted efforts water deficit could not become a hindrance. The palm dates in particular just need watering only for about three months for they could absorb the underground waters by themselves. So, it is a timely issue for the Ministry of Agriculture and other concerned bodies to take part in utilizing the potentials at disposal and provide the farmers with necessary pesticides.

Any passer by who knew the Southern Red Sea region some years back is obliged to admire the distribution of educational and potable waters supply in such a wider areas of the region. Beylul administrative area which is situated a few km away from the main Assab-Idi route is part of the Southern Denakalia administrative area. Even though it still needs a fence, the healthcare institution of this area is also giving full medical services. What is really worth mentioning is, however, the solar energy powered water supply project. Besides securing its sustainability through judicious utilization, the inhabitants of Beylul have been giving due care in protecting the project from any sort of damage.

Generally, the service rendering institutions that have been put in place in different areas of the Southern Region are very appreciable. But, Berasole administrative area still needs to have such services. Some healthcare institutions that have been constructed in such area have not been equipped with medical instruments and there is also a deficit of medical professionals.

Traveling to the southern Red Seal region one could not miss the region’s potential of producing wind energy. Wind turbines that have been erected in Assab have, for instance, been generating almost 1/3 of the city’s total demand. Wind energy suppliers equipment that has been put in place in many of the villages of the Southern Red Sea is in fact vivid example of such potentials. But, its sustainability would be endangered for proper renovation and maintenance has not been made for long.

Shabait

/CE

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1. Eritrea to Attract Investors with Free Trade Zone at Sea Ports
2. Northern Red Sea – Underground Garden of Eden
3. Assab Volcanic Field – Red Sea, Eritrea
4. Wind Energy Reduces Fuel Dependency in Eritrea
5. ERI-FISH Plant Introduces Modern Equipments

Port Massawa Eritrea

By Berhane Woldu

Eritrea’s Strategic Location along the Red Sea provides ideal exposure to one of the world’s busiest shipping lines and established linkages to other areas of the region and beyond.

The port of Massawa is a transit point for goods to the Middle East, European and Asian Markets. The development of the port is poised to bring about potential gains to trade.

The establishment of a Free Port Zone at Massawa is further expected to boost trade prospects within the already established Middle Eastern and African Markets. The Massawa Airport is equally capable of facilitating traded goods in transit to regional and global destinations.

Investment in exploration activities for reserves of oil, natural gas, and otherminerals provide a potential source for the expansion of export receipts. Eritrea’s natural mineral resources include gold, copper, potash, zinc, oil, natural gas, cement, gypsum, granite, marble, ceramics, limestone and iron ore.

The Bisha Mining Company, which is a mining conglomerate between the government and a Canadian company (NEVESUN), has started production in early 2010. The company produced more than 390,000 oz of gold during the first year of operation and expected to produce more than 450,000 oz in the second year. Copper production will begin in the second year and peak at 184-million pounds of copper in the fifth year of operation. The mine will begin producing zinc in its sixth year. There are many more mining contracts on the making. The potash mine in Danakil Depression with a planed output of up to 10,000 ton a day life span of over 150 years, the Zara and Dubrba gold mining Eritrea stands to share in hundreds of billions of dollars in mining profits.

PRIVATE SECTORE DEVELOPMENT

The private sector is seen as the major development partner, an engine of growth that will help jump start the economy and eventually lead to long-term growth in the Governments development agenda- as explicitly indicated in the Macro Policy document (1994). The Government has achieved so much at adopting favorable monetary and fiscal policy, reduced regulatory framework and bottlenecks by offering incentives and avoiding trade and other related barriers to attract private sector investment and to expand exports.

In line with the macro-policy objectives, a revised investment code was issued in 1994. The main objective of the investment code is to promote investment in Eritrea as well as develop and use the country’s natural resources. Within this broader objective, the investment code intends to achieve objectives including, the promotion of exports, encouragement of competitive import substitution industries, enhancing transfer of new technology, securing equitable regional growth, development of small-and medium-scale enterprises, and expansion of employment opportunities (GOE, 1994: 5).

The Eritrean investment code also provides various incentives for domestic and foreign investment. The investment code further outlines that there will be no taxes on declared dividends; any corporate profit that is set aside for reinvestment will be taxed at the rate of 20%. Furthermore, there shall be no exchange controls for remitting dividends and capital gains, and foreign investors are free to repatriate their profits.

The investment code provides various benefits to investors. For instance, profit and dividends of investors, payments for a foreign loan, fees, royalties, or proceeds received from liquidation of investment and/or expansion, and payment received from the sale of transfer of shares will be remitted in accordance with the rate of exchange prevailing at that time. There is no minimum threshold value of investment. Moreover, with the exception of domestic retail and whole sale trade, import, and commission agency that requires bilateral agreements of reciprocity with the country of investor, all areas of investment are open to all investors both foreign and domestic (GOE, 1994:6). Foreign capital may establish any enterprise on its own or in partnership with local capital.

Moreover, the investment code guarantee, that capital and other associated foreign-owned assets will not be nationalized without due laws. To this effect, Eritrea has also signed the convention establishing Multilateral Investment Guarantee Agency (MIGA) and the convention on the Settlement of Investment Disputes between States and Nationals of other States(GOE, 1998: 20). It established, The Investment Center, which is the legal body responsible for the promotion of investment. Issuance of certification to investors with a maximum delay of 10 days (GOE, 1994:15), Land Proclamation that provides usufruct rights for the long-term up to 99 years has been issued since 1994 and is expected to facilitate the allocation of land for investors (GOE, 1994; IMF, 1996:9).

Significant progress has been made since independence regarding the liberalization of trade policy.

The 1994 Legal Notice 18/1994 reduced the number of import tariffs to twelve. Capital goods, raw materials, and semi-processed goods have only a2 % tariff. Basic goods duties range from 3 to 20%.

In addition, customs procedures were simplified. In the mid-1990s, the government began major investments in infrastructure, roads, electricity, dams, and port operations to support the further development of exports.

To expand the market for import and export potentials the country entered into active membership in regional organizations such as IGAD and COMESA.

INVESTMENT ENVIRONMENT

Peace and security are the main pillars of a true and conducive investment environment in Eritrea. The economic policy underlines the necessity to have a market lead economic system. The private sector should have the upper hand in all economic sectors with the government to intervene in major public shares. The following are some of the steps taken for a better investment environment:

• The Eritrean Investment Center was created in 1998 to promote the country as an attractive investment destination. The investment center approves investment projects, and aims to promote and facilitate investment activities in Eritrea.
• The Business Licensing Office (BLO) was established to create a centralized, “One-Stop”, licensing center to facilitate the speedy formation of business ventures as well as the issuance and renewal of licenses.
• Key investment opportunities in the fisheries sub-sector provide a potential of 90,000 sq.km of fishing ground, with an estimated annual production potential of 65,000-70,000 tons of fish and other marine produces.
• The manufacturing sector produces a variety of products with particular emphasis on processed food and dairy products, alcoholic beverages, glass, leather goods, marble, textiles and salt.
• Recent developments in the mining and quarrying sectors.
• Investment opportunities in the service sector include tourism, transport, energy and water resources, communication and financial services.
• Offshore oil and natural gas exploration are specific areas of potential investment in the energy sub-sector.

INVESTMENT INCENTIVES IN ERITREA

The investment policy of Eritrea provides the following incentives to foreign and domestic companies.

• Both local and foreign private sector investors are allowed to participate in all sectors of the economy with no restriction and discrimination
• Priority foreign exchange allocation given to exporters
• Up to 100% retention of foreign currency earning
• No taxes on dividends declared
• Capital goods, intermediates, industrial spare parts and raw materials are subject to nominal customs duty of 2%
• Raw materials and intermediate inputs are subject to 3% sales tax; however, all sales taxwill be rebated on all materials and inputs that have been used for export production
• Exports are exempted from export duties and sales taxes
• Any loss incurred during the first two years of operation by an investor may be carried forward for three consecutive years
• Marginal tax rate on personal income from 2%-38%: on non-corporate profit from 2%-38%; on corporate profit from 25%-35%; on commercial agriculture from 2%-320%; and on rent income from 1%-48%
• Profit derived from mining activities will be taxed as per the mining legislation; and
• Corporate profit that is set aside from reinvestment taxed at the rate of 20%.

/CE

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3. Eritrean Minister addresses Mining Companies in Perth, Australia
4. Eritrea Trade Brief – Worldbank Trade Indicators
5. NGEx Closes Private Placement

Chinese Cargo

New equipment, technology, knowledge and skills are rebuilding a proud nation

Blessed with large deposits of precious minerals such as gold, silver, copper and zinc, Eritrea offers foreign investors a wealth of opportunities in the mining sector, while the agriculture, tourism, fisheries and manufacturing industries also possess huge potential.

President Isaias Afewerki is determined to transform Eritrea into the Horn of Africa’s logistics hub, as the country of 5.6 million people capitalizes on its 1,151-km long Red Sea coastline and access to one of the world’s busiest trade and shipping routes.

As the African nation’s preferred commodity partner, China is playing a key role in Eritrea’s socioeconomic development through the supply of aid, capital, machinery, technology, knowledge and skills.

Chinese enterprises and equipment are also widely involved in the rebuilding of vital infrastructure such as roads, airports, power and telecommunications, schools and hospitals.

“Our priority has been the creation of a good climate for investment and development,” said Afewerki, who took office in 1993 as head of the People’s Front for Democracy and Justice (PFDJ).

“Eritrea can be a gateway for investment in Africa if we can take advantage of our excellent strategic location. Our partnership with China, even though it is in its early stages, will dramatically change the reality in this country and give us a greater global interaction.”

According to the president, the mining, fisheries and agricultural sectors, especially cotton production, are best suited for Chinese investment as they will utilize the country’s natural resources and generate substantial exports revenues.

“The potential for cotton cultivation is huge and a key part of our agricultural program is the introduction of new technology,” he said.

“We are developing our agricultural infrastructure and, in partnership with China, are developing a textile industry. The initial commitment with China for cotton exports is already in place. We have begun with very modest programs but we need to expand them.”

Tightening bonds

Chinese Ambassador to Eritrea, Li Liansheng, has welcomed these and other positive developments as he looks to strengthen these political, commercial, industrial and social bonds.

“The Eritrean government is trying to invite Chinese companies to make Eritrea a trading and transportation center for Chinese goods,” he said. “There is particular potential and interest for Chinese companies in Eritrea’s strategic location at the gateway to the vital trade and shipping route on the Red Sea.”

A core pillar of Eritrea’s modern economic policy is the setting up of new free trade zones that will generate fiscal growth, create jobs, boost government revenue and raise the country’s profile on the global stage.

With a strategic location on international shipping lanes, Eritrea offers exporters and investors easy access to foreign markets, with up to 40,000 cargo ships a year – carrying some 700 million tons of cargo – passing close to its coast.

In order to capitalize on these commercial opportunities, Eritrea is building a series of modern free trade zones comprising factories, warehouses, offices, roads, airports and transport facilities. The first free trade zone will commence operations shortly at Massawa after the government invested millions of dollars in the transformation of 5,000 hectares of land next to a former naval base.

Chinese enterprises are among the foreign firms that will be based there and benefit from a tax-free environment in which no direct or indirect taxes are paid on sales or profits.

A second facility at Assab will open later this year and officials have plans for similar developments across the country, including one focused on agro-businesses near the border with Sudan.

The ‘multiplier’ effect

According to Eritrea Free Zones Authority CEO, Araia Tseggai, the free trade zones will stoke the economy through the “multiplier” effect of employment, training and education opportunities and act as a magnet for foreign investors.

“We feel they are a good place for Chinese companies to secure and buy resources from Eritrea, process them there and take them to China or use them for their own purposes anywhere in the world,” he said.

“Looking ahead to the imminent openings of the new free trade zones at Massawa and Assab, Tseggai emphasized the importance of Eritrea’s location in the Horn of Africa and revealed that while the Massawa facility will focus on manufacturing, the sister zone at Assab will be aimed at transshipment-related operations and services.

“Cargo ships are always passing and this element is crucial as most of the shipping firms will end up stopping here and picking up their produce to wherever they are going,” he said.

“Chinese enterprises always carry out relatively large projects so if the Chinese start up businesses and logistical operations here it will be very important for our current and future operations as they are significant investors.”

A leading figure in Eritrea’s import and export sector – and an organization that is sure to benefit from the presence of the free trade zones – is the government-owned Red Sea Trading Corporation.

Established in 1984 as a commodities trading business, the non-profit firm performs a wide range of operations. It handles commodities such as sugar, grain and oil and the bulk of its trade is with China, where it is looking for further business opportunities.

“Our priority has shifted to China – the more suppliers you get, the more chances you have to obtain different brands of commodities and products,” said Red Sea Trading Corporation general manager, Negash Afworki.”

As the government’s head of economic affairs, Hagos Ghebrehiwet is responsible for overseeing the development of many of Eritrea’s State-owned enterprises in a range of sectors. “We have to become independent and develop our resources,” he said. “We need investment and assistance that allows us to stand on our own two feet, as well as being mutually beneficial.”

Building connections

Meanwhile, helping firms connect to the world in today’s technology-dependent society is EriTel. The country’s sole telecommunications provider is State-owned and is committed to improving its infrastructure and network coverage with the help of Chinese equipment, technology and human resources.

“We have replaced the old analogue equipment across the country with new digital telecommunications technology and have installed solar energy systems in areas where there is no electricity so that the mobile systems work 24 hours a day,” EriTel general manager and CEO, Berhane Tesfaselassie said.

“The Chinese are helping our development in many areas and I really appreciate their contribution to Eritrea’s telecommunications sector and their cooperative and understanding attitude.”

Such technological improvements are a key component of the growth of the Housing and Commerce Bank of Eritrea.

Founded in 1994, the Asmara-based bank offers individual and business customers a wide range of financial products and services such as savings and deposit accounts, private and commercial loans, plus international money transfers.

“Even though 60-70 percent of our activities and transactions are still involved in real estate, we do provide all the normal services that a bank should offer,” said Housing and Commerce Bank of Eritrea General Manager, Berhane Hiwet Ghebre.

“We are trying to open new branches in remote areas so everybody can benefit from our banking services and we really care about corporate social responsibility.”

Source: China Daily

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2. Chinese Trade Volume with Eritrea, $31 Million in 2008
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5. Sudan: First Chinese Airline to Operate Bejing – Khartoum

erifish

Roxanna Samii, International Fund for Agricultural Development (IFAD) -I first visited Eritrea in 2008 and it was love at first sight. In December 2009 when I landed in Asmara airport, I felt like I was back home. I spent my first couple of days visiting the irrigation schemes in zoba Debub and then went east to zoba Northern Red Sea where I visited Massawa, the capital city of Northern Red Sea Zoba which is the centre of Eritrea’s fishing industry.

Massawa is one of the hottest places on earth, with temperatures soaring well above 40C (104F) and 80% or more humidity for much of the year. Yet, like rest of this beautiful country, it has its charm.

Eritrea is a relatively rich country in terms of natural resources. It has gold, potash, zinc, copper and salt. What is perhaps less known is the fact that Eritrea also has significant fisheries resources and that 20% of the coastal population’s livelihoods depends on fisheries. However, unlike the gold or copper, fisheries resources, if properly managed, can continuously provide food, employment and income to the coastal communities.

Eritrea’s 1,200km coastline is highly favourable for artisanal fishing offering rich and varied fish stocks and sheltered fishing grounds. Unlike artisanal fishers in other parts of the world, Eritrean fishers have not overexploited their resources and could potentially increase their catch from the few thousand tons per year to at least 40,000 if not 80,000 tons per year.

Their fish stocks include lizard fish, threadfin breams, and catfish (soft bottom demersal); snappers, emperors, grunts, job fish and groupers (hard bottom demersal and reef fishes); sardines and anchovies (small pelagic); tunas, mackerels and sharks (large pelagic); shrimp, crabs, lobsters (crustaceans); and squids and octopus and cuttlefish (cephalopods).

“Eritrea’s fisheries sector has the potential to contribute substantively to our national food security and can play an important role in reducing poverty in coastal areas”, says Andom Ghebretensae, Director-General Regulatory Services. “Currently we have 3,000 licensed artisanal fishers. Eritrea’s coast not only is rich in fisheries resources but also has great potential for tourism.”

The Government of Eritrea has long recognized this potential and in collaboration with a number of donors such as the African Development Bank and the European Union has built EU standard landing and processing sites. These sites are fully equipped with processing and storage facilities, where trained personnel weigh, process and grade the catch.

Eritrea’s fish exports may have been low in recent years (approximately 234mt in 2008), however, thanks to the upgrading of landing and processing facilities, today Eritrea is eligible to export fish products to European Union countries.

Eritrean artisanal fishers aspire to become entrepreneurs

Eritrean artisanal fishers use two types of fishing boats – houris or sambuks. Houris constitute 80% of the fishing fleet. These are wooden boats and measure anywhere between 8-13 metres. It has an outboard engine and can take up to five people on board.

Sambuk, 16 metre wooden boat with an inboard engine, constitute approximately 9% of the fishing fleet. Sambuks can take up to nine people on board.

The remaining 11% is made up of fibreglass reinforced plastic boats imported from Saudi Arabia or Yemen, although some are also being built in Eritrea.

“I have a traditional wooden boat called a houri which I bought thanks to a 5 year loan”, says Ahmed Hamid, an artisanal fisher. “There are three of us and with our boat we can go between 8-10 kilometres from the shore and we can always count on an average catch of 800 kilos”.

“During the fishing season – which is approximately seven months – we make about 2-3 fishing expeditions per month. We use small nets and usually stay out in the sea for an average of 10 days”, explains Hamid

“We buy ice from Massawa Fish Landing centre for 0.80 nakfa per kilo and use it to preserve the fish on board”, says Hamid proudly. “We sell our entire catch to National Fisheries Corporation which then sells it to processors such as Erifish. They buy the snappers for 22 nakfa per kilo and the groupers go for 25 nakfa. And we use 20% of our catch to repay the loan”.

On the landing site, Hamid and his fellow fishers unload their 800 kilo of first class tuna, snappers, emperor and groupers in big blue containers. Their catch is immediately taken next door to the EU certified Erifish processing plant, where a team of 24 people degut, process and packaged the fish for export.

“I have everything I need on my traditional boat – a cellphone, my medical kit and a transistor radio – but I would like to buy fibre glass reinforced boat, so that we can stay a maximum of a month and come back with an average catch of 1.5 tons”, said Hamid with a smile. “And I look forward to the day when I am able to sell part of my catch freely on the market”.

Fisheries sector can help ensure national food security and provide investment opportunities

In Eritrea, meat is the preferred source of protein. Fish consumption is estimated at 0.5-1kg/person/year which is low compared both to the average Africa consumption, estimated at 8kg/person/year.

“We need to encourage our people to eat more fish and to consider fish as an alternative source of protein”, says Seid Mohamed Abrar, Director, Office of the Minister of Marine Resources.

“We have high market value fish and we can fish approximately 80,000 tons per year without any risk of depleting the fish stock”, says Abrar. “By exploiting our fisheries resources, we can contribute to ensuring food security for our coastal population and help the artisanal fishers to improve their livelihoods.”

This is why the Government of Eritrea requested IFAD’s assistance to design a fisheries development project to support artisanal fishers in the Red Sea coastal regions.

“The IFAD-funded Fisheries Development Project under the auspices of the Ministry of Marine Resources will reorganize and strengthen fishers’ cooperatives and support artisanal fishers so that they can increase their incomes and improve their food security”, says Abla Benhammouche, Country Programme Manager for Eritrea. “This project will help Minister of Marine Resources to make the fisheries sector sustainable and at the same time reduce illegal, unregulated and unreported fishing.”

The Fisheries Development Project will build the capacity of fishers such as Hamid and equip them with modern fishing techniques and better and secure boats and fishing gears. At the same time, the project will encourage private sector initiatives to add value to the processing and packaging process, also build the capacity of Erifish to better market the catch domestically and expand their export markets.

To support private sector investment, artisanal fishers such as Hamid will be allowed to sell 20% of their catch to private processors and traders, with the prospect of increasing this percentage as private sector further develops.

Last but not least, private sector investment can help transform Eritrea’s Red Sea coast into a flourishing tourist resort, offering spectacular diving opportunities and uncontaminated beaches. “We can become a viable rival to other Red Sea resorts such as Sharm el-Sheikh”, says a proud Abrar.

Legacy of a visionary American biologist: Mangroves for all

During World War II Dr Gordon Sato, a biologist spent some time in a concentration camp called Manzanar in California desert. During his internment he developed his vision of eradicating hunger by enabling African nations to feed themselves. He invested half a million dollar of his own money in the Manzanar Project.

This visionary philanthropic scientist conceived this project as low-tech solution to hunger and poverty and to combat the impact of climate change, when climate change was neither on the international agenda nor on the talk of the town!

The project started during the 30-year war to win independence from Ethiopia. Sato first joined the Eritrean fighters in 1987 and introduced fish farming. He succeeded in growing fish and providing high protein food for the wounded. After the war, he focused on issues related to economic development and applied what he knew best – biological principles – to develop a self-sufficient economy in a country that is prone to drought and famine.

However, soon he saw the potential of mangroves to increase food production all the way up the food chain.

In an interview, Sato said: “I was in an area with mangrove trees, and I noticed the camels eating them. I got the idea that the trees could also supply food for sheep and goats. There was lots of available space for growing mangroves, so it seemed like an obvious solution. Initially, I had to figure out how best to grow them and how to make the mangroves good food. We found that mangroves would be adequate food for livestock, as long as they were supplemented by a small amount of fish meal prepared from fish waste.”

Years later, thanks to the Manzanar project and Sato’s legacy, Eritreans are using fresh leaves and dried mangrove seeds as livestock feed. This project has also taught herders that the seaweed that washes up on shore can be dried, processed and used as animal feed.

Ammanuel Yemane, Manzanar project manager, takes pride to showcase Sato’s teaching. Sato and his team reached the conclusion the mangroves were growing in areas where rainwater was washing into the sea. The rain was providing nitrogen, phosphorous and iron – elements lacking in seawater. The team buried the seeds with a piece of iron and a punctured bag of fertiliser rich in nitrogen and phosphorous and saw the mangroves flourishing.

Today, Yemane and his team work with women, men, herders and fishers of Hirgigo village to teach them how to use the same technique to plant mangroves so that they can effectively address sustainable resource issues such as providing food for livestock, protecting the fish and preventing deforestation. “The village is now learning to manage the mangroves and we can recover the lost mangroves in approximately 6 months”, comments Yemane.

The IFAD-funded Fisheries Development Project will join forces with Yemane and his young group of dedicated and passionate Eritrean to support the rehabilitation of the mangroves and to:

• build capacity of fishers to develop viable and sustainable business plans
• teach fishers how to protect marine natural resources such as the coral reefs
• teach fishers to form cooperatives
• organize exchange visits

A brighter future

Through out their history Eritrean people repeatedly have shown their resilience and resoluteness. It goes without saying that they will be able to unleash the potential of their untapped gold mine – their fisheries sector – in the most sustainable manner and as a result contribute substantively to improve the livelihoods of the coastal population and create a vibrant local private sector.

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4. ERI-FISH Plant Introduces Modern Equipments
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Port Workers

African Journal correspondent, Linda Muriuki, is reporting on the economy of Eritrea. She is talking about the geological resources of Eritrea and the role they could play in developing Eritrea’s economy.

Further, she is mentioning that analysts are predicting a mining boom in the country.

The video shows that this view is shared by Eritrean authorities, who want to develop the sector in a sustainable manner.

The government wants to prevent the so called “Resources Curse”, which is a terminology for incidents where minerals and oil have fueled violence and corruption in Africa.

The report is also highlighting that many of the Eritrean Diaspora are avoiding Eritrea, because of reports about human right abuses within the country. Nevertheless, the Diaspora is supporting Eritrea in monetary terms and is contributing to rebuild the infrastructure.

Mrs Muriuki makes the remark, “Although Eritrea has not always let in the outside world, it is now starting to open up “.

A comment, which gives hope that things are moving into the right direction in Eritrea. The first step towards opening up Eritrea to the outside world can be seen in the coming Free Trade Zone, which is going to abolish many trade barriers as an incentive for foreign companies.

Eritrea is hoping to become a strong economy in the region and for future generations this might change the perception of Eritrea in the world. Watch the Video by Reuters (“Eritrea Opens Up”).

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According to Araia dozens of companies have already registered, because Eritrea’s ports are located along the busiest shipping routes of the world. Further, he outlined that approximately 20.000 ships loaded with 700 million tonnes of cargo, which is around 9% of the total global freight market, would pass each year the coast of Eritrea.

The country is said to have invested millions of $US for the infrastructure of the harbour and airport in Massawa. There are already around 12 companies from countries such as China, Italy, Israel, India, Djibouti, Sudan and Dubai, which have registered under the scheme.

Araia points out that the competitive advantage of Massawa or Assab lies in the low labour costs compared to ports such as Dubai, Djibouti or Aden. Although, Eritrea is aware of the fierce competition from neighbouring countries, it believes it can tap into the niche market of small scale freight operations. Because, small companies would shift away from expensive harbours in the region in favour of the less expensive Eritrean ports. Thus, the initial strategy would be to focus on small cargo business first.

Eritrea’s second and strategically better located port Assab, due to it’s closer location to the Indian Ocean, will follow Massawa into the free trade zone in 2010. Eritrea hopes with this measures to stimulate economical activities in the country as well as to lay the foundation for a good soil of future trade with the world.

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eritrea-wind-engergy

Ice is required as there is a need to keep the fish fresh while transporting, storing and trading the catch around markets in the region. Fishermen rather sell the fish freshly caught while on sea to Yemen. This shows that the limitation of resources keeps the local fishing industry below its potential.

However, there is a “wind of change” coming in the name of the Wind Energy Application Pilot Project financed by the UNDP and the Global Environment Facility. Under the project it is planned to provide electricity for seven villages in the area in 2009.

The prospects that the venture will be successful are promising. According to the local officials and the responsible implementation team of Turkish engineers, wind speeds of over seven knots are required to produce sufficient electricity. Along the Red Sea cost of Eritrea, winds can reach up to 10 knots or more. The planned wind park installations in Assab and the region will reduce fuel dependency and reduce expenditure of fuel imports. Read more: IRIN.

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Port of Djibouti

Landlocked Ethiopia this week admitted the nation’s high dependency to only Djibouti port has become a big concern to her as the volume of its fast growing import-export trade keeps booming with time.

In a in a nine-month performance report it presented to the House of Peoples’ Representatives the Ministry of Transport and Communication on Tuesday said that although Ethiopia uses other alternative ports of neighboring countries most of its import-export trade is carried out through the port of Djibouti which accounts over 90% of the total import-export trade.

The report disclosed that relying on one port has become a bottleneck to the development of import-export trade in the country. It added that Ethiopia is limited to the use of one port land shipping matters and the transit service are not compatible to the economic development and the demand for such services that arise as well.

Currently, Djibouti port, 910 kms east of Addis Ababa, serves as Ethiopia’s main sea gateway since the horn of Africa’s nation lost ports of Assab and Massawa following Eritrea’s independence.

Ethiopia’s annual cargo traffic at Djibouti port totals over 4.8 million tonnes. Ethiopia’s cargo accounts for 83 percent of the total cargo traffic at the port. Djibouti port has the capacity to handle ten millions tonnes of cargo and 500,000 containers per annum.

Ethiopia every year spends more than two billion birr for port service

In recent years the Ethiopian government led by Prime Minister Meles Zenawi doesn’t seem to withstand the high dependency on a single port and has begun efforts to identify alternative ports.

Ethiopian authorities have been assessing the port of Somaliland, Berbera, Port Sudan and the Mombassa port of Kenya as an alternative.

The Ethiopian government is also under repeated high pressure from Ethiopian businessmen who are seeking alternative, cheaper routes through which they can export and import goods

As Part of efforts to ease dependency on the port of Djibouti,Ethiopia is also forging better road links with its neighbors Sudan and Kenya

The port of Assab in the south of Eritrea was used almost exclusively by Ethiopia but since the 1998-2000 deadly border war, the port has gone idle.

Since Ethiopia went in war with Eritrea, the port of Djibouti became the only significant port for Ethiopia. Millions of dollars of goods shipping each year through the port to Ethiopia, and more than 30,000 barrels of oil a day are required just to meet Ethiopia’s fuel needs.

Source: Sudan Tribune

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