Eritrea: Statistical Appendix

International Monetary Fund

doi:10.5089/9781451811957.002.A001

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Eritrea

Statistical Appendix

Author: International Monetary Fund

Publication Date:: 10 May 2000

eISBN:: 9781451811957

Language:: English

Keywords:: ISCR; CR; taxable income; proceeds; capital goods; business firm; foreign exchange auction; dealers' license; issues dealers' license

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The paper presents statistical data on gross domestic product by sector, agricultural production, regional structure of the agricultural sector, food grain position, annual catch and sales of fish, and gross value of public enterprise production of Eritrea. It also includes data on Assab refinery production, purchases and sales by Eritrea, ex-refinery and retail prices of petroleum products, summary of developments in the labor market, structure of private sector wages, summary of government operations, distribution of net foreign assets, balance of payments, and other related economic indices.

Abstract

APPENDIX I Eritrea: Sumary of the Tax System as of December 1999

Source: Eritrean authorities.

	Tax	Nature of Tax	Deductions and Exemptions		Rates
1.	Tax on income and profits
1.1	Income tax on employment (Proclamation No. 62/1994; October 5, 1994; Legal Notice No. 20/1995)	Tax withheld monthly by employers on salaries, allowances, pension contributions, and other benefits and personal emoluments (cash and in kind).	Exemptions: income from employment of unskilled workers, employed on a daily and irregular basis; income of business representatives residing in the country less than 183 days.	No.	Taxable income (nakfa per month)	Tax rate on additional income (in percent)
				1	up to 200	2
				2	201 - 500	7
				3	501 - 1,200	12
				4	1,201 - 2,000	17
				5	2,001 - 3,500	24
				6	3,501 - 5,500	29
				7	5,501 - 8,000	34
				8	over 8,000	38
1.2	Income taxes on agriculture
1.2.1	Income tax on commercial farming (Proclamation No. 62/1994; October 5, 1994)	Annual tax levied on taxable income of commercial farms, payable within four months after the end of the fiscal year for all taxpayers. Assessment based on returns filed.	None.	No.	Taxable income (nakfa per year)	Tax rate on additional income (in percent)
				1	up to 1,000	2
				2	1,001 - 10,000	5
				3	10,001 - 20,000	10
				4	20,001 - 35,000	15
				5	above 35,000	20
1.2.2	Income tax, rural land use fee, and cattle tax for smallholders (Proclamation No. 63/1994; October 5, 1994; Legal Notice No. 21/1995)	General annual land use fee for every farmer, and an additional annual fee levied on smallholder commercial farming, with specific rates for livestock.	None.	General annual land use fee of ERN 18 per farmer, and ERN 5 for every quarter of a hectare that is commercially used by farmers without a commercial farming license.
				Specific tax rates for each head of animal:
				Camel		ERN 4.0
				Horned cattle, horse, mule		ERN 2.0
				Donkey		ERN 1.0
				Sheep or goat		ERN 0.5
1.3	Income tax on profits
1.3.1	Income tax on profits of incorporated business (Proclamation No. 62/1994; October 5, 1994)	Annual tax levied on taxable income, payable within one, two, or four months after the end of the fiscal year for taxpayer categories A, B, and C. Assessment based on returns filed.	Exemptions: dividends, and interest income of persons. Profits derived from mining activities to be taxed as per mining legislation. For new investments, losses incurred during the first two years may be carried forward for three consecutive years; for new investments, losses may be carried forward an additional one year in exceptionally critical circumstances.	No.	Taxable income (nakfa per year)	Tax rate on additional income (in percent)
				1	up to 100,000	25
				2	100,001 - 400,000	28
				3	400,001 - 750,000	30
				4	above 750,000	35
				Reinvested profit will be taxed only at 20 percent upon submission of certificate of the Investment Center.
1.3.2	Income tax on profits of unincorporated business (Proclamation No. 62/1994; October 5, 1994)	Annual tax levied on taxable income, payable within one, two, or four months after the end of the fiscal year for taxpayer categories A, B, and C. Assessment based on self-declared income, except for certain sectors where presumptive tax rates are applied.	Exemptions: dividends, interest income from bank accounts, and income from self-employed persons residing in rural areas in certain sectors (e.g., blacksmiths, pottery).	No.	Taxable income (nakfa per year)	Tax rate on additional income (in percent)
				1	up to 2,000	2
				2	2,001 - 5,000	7
				3	5,001 - 18,000	15
				4	18,001 - 35,000	20
				5	35,001 - 60,000	25
				6	60,001 - 100,000	30
				7	100,001 - 150,000	35
				8	over 150,000	38
1.4	Tax on gains from lottery and other games, royalties, and services income earned abroad (Proclamation No. 62/1994; October 5, 1994)	Levied on taxable gross income of lottery and game wins. To be paid within one month after income is received. Assessment based on returns filed.	None.
				Income from lottery (above ERN 500), and from bingo (above ERN 400) Royalty and income from services from abroad		10 percent
						10 percent
1.5	Rental income tax (Proclamation No. 62/1994; October 5, 1994)	Annual tax levied on all income received in cash and in kind from the rental of movable and immovable property. Assessment based on returns filed. Tax payments are required within one month after the end of the fiscal year.	None. Local property tax payments, and one-fourth of gross income received for the rent of buildings, furniture, and equipment (as allowance for repairs, maintenance, and depreciation) are deductible.	No.	Taxable income (nakfa per year)	Tax rate on additional income
				1	up to 120	ERN 1
						(in percentage)
				2	121 - 380	1.5
				3	301 - 480	3.0
				4	481 - 660	4.5
				5	661 - 840	6.0
				6	841 - 1,020	8.0
				7	1,021 - 1,200	10.0
				8	1,201 - 1,600	12.0
				9	1,601 - 2,000	14.0
				10	2,001 - 2,400	16.0
				11	2,401 - 2,800	18.0
				12	2,801 - 3,600	20.0
				13	3,601 - 4,400	22.0
				14	4,401 - 5,200	24.0
				15	5,201 - 6,000	26.0
				16	6,001 - 8,000	28.0
				17	8,001 - 10,000	30.0
				18	10,001 - 12,000	32.0
				19	12,001 - 16,000	34.0
				20	16,001 - 20,000	36.0
				21	20,001 - 24,000	38.0
				22	24,001 - 30,000	40.0
				23	30,001 - 36,000	42.0
				24	36,001 - 42,000	44.0
				25	above 42,000	48.0
1.6	Income tax on Eritreans working abroad (Proclamation No. 67/1995; February 10, 1995)	Tax on net income from employment, rent of movable and immovable property, and vocational and professional services. Payable monthly or annually. Collected through embassies, consulates and other delegations under the Ministry of Foreign Affairs; transferred directly to the Treasury.	None.			2 percent.
1.7	Surtax (Circulars by Ministry of Local Government dated October 3, 1998, and Ministry of Finance dated December 24, 1998)	Additional tax on personal income, corporate income, and unincorporated business income. Base for business profit tax is the average of turnover in 1997 and 1998.	Same as income tax on employment and income tax on profit.	On personal income, same rates (i.e., 2-38 percent) as income tax on employment are applied, in addition to normal income tax, and fixed amounts ranging from ERN 5 to ERN 110 per month are levied on each of 40 income brackets.
1.7			Same as income tax on employment and income tax on profit.	On business profit, 2.5 percent for services and construction, 1.5 percent for suppliers of goods (importers, wholesalers, and manufacturers) and construction are applied to businesses with annual turnover not less than ERN 100,000. Fixed amounts ranging from ERN 342 to ERN 2,556 are levied on each of 5 brackets for businesses with annual turnover less than ERN 100,000.
2.	Taxes on goods and services
2.1	Sales tax on domestic goods (Proclamation No. 64/1994; October 5, 1994; Legal Notice No. 22/1995)	Single-stage tax levied at factory or wholesale level on all manufactured goods and collected monthly. Sales tax paid on raw materials used for local production will be refunded. Assessment based on self-declaration.	All exports, and the following products for domestic sale are exempted: basic foodstuffs (e.g., cereals, leguminous vegetables, njera, rice, bread); live animals; capital goods for agriculture, industry, and construction; refractory bricks and the like used in building furnaces; fire-fighting equipment; public transport vehicles; vehicles used for road maintenance, lifting and loading equipment, kerosene and aviation fuel; medical equipment; medical, scientific, and technical instruments; fish nets; beehives and incubators; silver and gold when imported by the Bank of Eritrea; traveler’s checks, revenue stamps, and bandlets.	Agricultural products, raw materials, most intermediate goods		3 percent
				Most consumer goods, drugs, some intermediate goods		5 percent
				All other products		12 percent
2.2	Sales tax on domestic services (Proclamation No. 64/1994; October 5, 1994; Legal Notice No. 22/1995)	Assessment based on value of the service, through self-declaration. Collected monthly.	All exports.	Subject to 10 percent sales tax: telecommunications; laundry; legal services, and public affairs services; photography, photocopying, and other reproduction; auditing and accountancy; lodging; consultancy; clearing and forwarding agents; all other agents; brokers; cinemas; tourism; rent of goods and movable property; garages.
2.2			All exports.	Subject to 5 percent sales tax: contractors; hair dressing and beauty salons; tailoring; repairs and maintenance, excluding garages; washing and greasing; billiard and bowling establishments; education and training.
2.3	Excise tax on domestic goods (Proclamation No. 64/1994; October 5, 1994; Legal Notice No. 22/1995)	Levied at factory level on all manufactured goods and payable within one month from the date of production. Assessed on the basis of costs of production, through self-declaration. Collected monthly.	Goods locally produced for direct export.	Mineral water, textiles, carpets		10 percent
				Glass beads and ornaments		30 percent
				Tobacco products, beverages with high alcoholic content		50 percent
				Four-wheel drive vehicles		90 percent
				Beer, perfumes, cosmetics		100 percent
3.	Taxes on international trade
3.1	Customs duties (Legal Notice 18/1994; (October 5, 1994)	Customs tariff regulations follow the Standard International Trade Classification (SITC) system.	Exemptions: imports of diplomatic and consular missions, personal effects and property of Eritrean returnees, and trade samples not used as merchandise.	Twelve different ad valorem rates, including the following:
				agricultural products and essential foods (e.g, cereals, oil seeds, hides and skins), most capital goods, raw materials (e.g., fertilizer), pharmaceuticals, pesticides, agricultural and construction machinery		2 percent
				basic consumer items (e.g., sugar, coffee), some capital goods, and raw materials		3 percent
				fish and fish products, manufactured consumer items, and intermediate goods		5-50 percent
				mineral water, video cameras, marble, jewels, and some other manufactured items		80 percent
				soft drinks, beer, perfumes, and cosmetics		90 percent
				CD recorders, electrical household appliances		100 percent
				video recorders		160 percent
				beverages with high alcoholic content, and tobacco products		200 percent
				specific rates for grease (ERN 0.15 per kg.) and small family cars (10 percent of CC).
3.2	Sales tax on imports (Proclamation No. 64/1994; Legal Notice 18/1994; October 5, 1994; Legal Notice No. 22/1995)	The sales tax applies to all imported commodities, and is computed based on the c.i.f. price plus customs duty and, if applicable, excise tax. Paid on clearance from customs.	Same exemptions as for customs duties, and as for sales tax on domestically produced goods. Reexports are also exempted. Sales tax paid on imports that are used for export production is refunded.	Same as for domestic sales tax.
3.3	Excise tax on imports	Paid by the importer when goods are cleared from customs.	Same as for domestically produced goods.	Same as for domestically produced goods, except for imported salt (3 percent).
3.4	Export tax	Abolished on October 5, 1994.
4.	Other taxes
4.1	Stamp duties (Proclamation No 65/1994; October 5, 1994; Legal Notice No. 23/1995)	Duties are levied on a range of legal documents and instruments, including contracts, agreements, bills of exchange, etc.	None.	Twenty different ad valorem and specific rates.

Source: Eritrean authorities.

	Tax	Nature of Tax	Deductions and Exemptions		Rates
1.	Tax on income and profits
1.1	Income tax on employment (Proclamation No. 62/1994; October 5, 1994; Legal Notice No. 20/1995)	Tax withheld monthly by employers on salaries, allowances, pension contributions, and other benefits and personal emoluments (cash and in kind).	Exemptions: income from employment of unskilled workers, employed on a daily and irregular basis; income of business representatives residing in the country less than 183 days.	No.	Taxable income (nakfa per month)	Tax rate on additional income (in percent)
				1	up to 200	2
				2	201 - 500	7
				3	501 - 1,200	12
				4	1,201 - 2,000	17
				5	2,001 - 3,500	24
				6	3,501 - 5,500	29
				7	5,501 - 8,000	34
				8	over 8,000	38
1.2	Income taxes on agriculture
1.2.1	Income tax on commercial farming (Proclamation No. 62/1994; October 5, 1994)	Annual tax levied on taxable income of commercial farms, payable within four months after the end of the fiscal year for all taxpayers. Assessment based on returns filed.	None.	No.	Taxable income (nakfa per year)	Tax rate on additional income (in percent)
				1	up to 1,000	2
				2	1,001 - 10,000	5
				3	10,001 - 20,000	10
				4	20,001 - 35,000	15
				5	above 35,000	20
1.2.2	Income tax, rural land use fee, and cattle tax for smallholders (Proclamation No. 63/1994; October 5, 1994; Legal Notice No. 21/1995)	General annual land use fee for every farmer, and an additional annual fee levied on smallholder commercial farming, with specific rates for livestock.	None.	General annual land use fee of ERN 18 per farmer, and ERN 5 for every quarter of a hectare that is commercially used by farmers without a commercial farming license.
				Specific tax rates for each head of animal:
				Camel		ERN 4.0
				Horned cattle, horse, mule		ERN 2.0
				Donkey		ERN 1.0
				Sheep or goat		ERN 0.5
1.3	Income tax on profits
1.3.1	Income tax on profits of incorporated business (Proclamation No. 62/1994; October 5, 1994)	Annual tax levied on taxable income, payable within one, two, or four months after the end of the fiscal year for taxpayer categories A, B, and C. Assessment based on returns filed.	Exemptions: dividends, and interest income of persons. Profits derived from mining activities to be taxed as per mining legislation. For new investments, losses incurred during the first two years may be carried forward for three consecutive years; for new investments, losses may be carried forward an additional one year in exceptionally critical circumstances.	No.	Taxable income (nakfa per year)	Tax rate on additional income (in percent)
				1	up to 100,000	25
				2	100,001 - 400,000	28
				3	400,001 - 750,000	30
				4	above 750,000	35
				Reinvested profit will be taxed only at 20 percent upon submission of certificate of the Investment Center.
1.3.2	Income tax on profits of unincorporated business (Proclamation No. 62/1994; October 5, 1994)	Annual tax levied on taxable income, payable within one, two, or four months after the end of the fiscal year for taxpayer categories A, B, and C. Assessment based on self-declared income, except for certain sectors where presumptive tax rates are applied.	Exemptions: dividends, interest income from bank accounts, and income from self-employed persons residing in rural areas in certain sectors (e.g., blacksmiths, pottery).	No.	Taxable income (nakfa per year)	Tax rate on additional income (in percent)
				1	up to 2,000	2
				2	2,001 - 5,000	7
				3	5,001 - 18,000	15
				4	18,001 - 35,000	20
				5	35,001 - 60,000	25
				6	60,001 - 100,000	30
				7	100,001 - 150,000	35
				8	over 150,000	38
1.4	Tax on gains from lottery and other games, royalties, and services income earned abroad (Proclamation No. 62/1994; October 5, 1994)	Levied on taxable gross income of lottery and game wins. To be paid within one month after income is received. Assessment based on returns filed.	None.
				Income from lottery (above ERN 500), and from bingo (above ERN 400) Royalty and income from services from abroad		10 percent
						10 percent
1.5	Rental income tax (Proclamation No. 62/1994; October 5, 1994)	Annual tax levied on all income received in cash and in kind from the rental of movable and immovable property. Assessment based on returns filed. Tax payments are required within one month after the end of the fiscal year.	None. Local property tax payments, and one-fourth of gross income received for the rent of buildings, furniture, and equipment (as allowance for repairs, maintenance, and depreciation) are deductible.	No.	Taxable income (nakfa per year)	Tax rate on additional income
				1	up to 120	ERN 1
						(in percentage)
				2	121 - 380	1.5
				3	301 - 480	3.0
				4	481 - 660	4.5
				5	661 - 840	6.0
				6	841 - 1,020	8.0
				7	1,021 - 1,200	10.0
				8	1,201 - 1,600	12.0
				9	1,601 - 2,000	14.0
				10	2,001 - 2,400	16.0
				11	2,401 - 2,800	18.0
				12	2,801 - 3,600	20.0
				13	3,601 - 4,400	22.0
				14	4,401 - 5,200	24.0
				15	5,201 - 6,000	26.0
				16	6,001 - 8,000	28.0
				17	8,001 - 10,000	30.0
				18	10,001 - 12,000	32.0
				19	12,001 - 16,000	34.0
				20	16,001 - 20,000	36.0
				21	20,001 - 24,000	38.0
				22	24,001 - 30,000	40.0
				23	30,001 - 36,000	42.0
				24	36,001 - 42,000	44.0
				25	above 42,000	48.0
1.6	Income tax on Eritreans working abroad (Proclamation No. 67/1995; February 10, 1995)	Tax on net income from employment, rent of movable and immovable property, and vocational and professional services. Payable monthly or annually. Collected through embassies, consulates and other delegations under the Ministry of Foreign Affairs; transferred directly to the Treasury.	None.			2 percent.
1.7	Surtax (Circulars by Ministry of Local Government dated October 3, 1998, and Ministry of Finance dated December 24, 1998)	Additional tax on personal income, corporate income, and unincorporated business income. Base for business profit tax is the average of turnover in 1997 and 1998.	Same as income tax on employment and income tax on profit.	On personal income, same rates (i.e., 2-38 percent) as income tax on employment are applied, in addition to normal income tax, and fixed amounts ranging from ERN 5 to ERN 110 per month are levied on each of 40 income brackets.
1.7			Same as income tax on employment and income tax on profit.	On business profit, 2.5 percent for services and construction, 1.5 percent for suppliers of goods (importers, wholesalers, and manufacturers) and construction are applied to businesses with annual turnover not less than ERN 100,000. Fixed amounts ranging from ERN 342 to ERN 2,556 are levied on each of 5 brackets for businesses with annual turnover less than ERN 100,000.
2.	Taxes on goods and services
2.1	Sales tax on domestic goods (Proclamation No. 64/1994; October 5, 1994; Legal Notice No. 22/1995)	Single-stage tax levied at factory or wholesale level on all manufactured goods and collected monthly. Sales tax paid on raw materials used for local production will be refunded. Assessment based on self-declaration.	All exports, and the following products for domestic sale are exempted: basic foodstuffs (e.g., cereals, leguminous vegetables, njera, rice, bread); live animals; capital goods for agriculture, industry, and construction; refractory bricks and the like used in building furnaces; fire-fighting equipment; public transport vehicles; vehicles used for road maintenance, lifting and loading equipment, kerosene and aviation fuel; medical equipment; medical, scientific, and technical instruments; fish nets; beehives and incubators; silver and gold when imported by the Bank of Eritrea; traveler’s checks, revenue stamps, and bandlets.	Agricultural products, raw materials, most intermediate goods		3 percent
				Most consumer goods, drugs, some intermediate goods		5 percent
				All other products		12 percent
2.2	Sales tax on domestic services (Proclamation No. 64/1994; October 5, 1994; Legal Notice No. 22/1995)	Assessment based on value of the service, through self-declaration. Collected monthly.	All exports.	Subject to 10 percent sales tax: telecommunications; laundry; legal services, and public affairs services; photography, photocopying, and other reproduction; auditing and accountancy; lodging; consultancy; clearing and forwarding agents; all other agents; brokers; cinemas; tourism; rent of goods and movable property; garages.
2.2			All exports.	Subject to 5 percent sales tax: contractors; hair dressing and beauty salons; tailoring; repairs and maintenance, excluding garages; washing and greasing; billiard and bowling establishments; education and training.
2.3	Excise tax on domestic goods (Proclamation No. 64/1994; October 5, 1994; Legal Notice No. 22/1995)	Levied at factory level on all manufactured goods and payable within one month from the date of production. Assessed on the basis of costs of production, through self-declaration. Collected monthly.	Goods locally produced for direct export.	Mineral water, textiles, carpets		10 percent
				Glass beads and ornaments		30 percent
				Tobacco products, beverages with high alcoholic content		50 percent
				Four-wheel drive vehicles		90 percent
				Beer, perfumes, cosmetics		100 percent
3.	Taxes on international trade
3.1	Customs duties (Legal Notice 18/1994; (October 5, 1994)	Customs tariff regulations follow the Standard International Trade Classification (SITC) system.	Exemptions: imports of diplomatic and consular missions, personal effects and property of Eritrean returnees, and trade samples not used as merchandise.	Twelve different ad valorem rates, including the following:
				agricultural products and essential foods (e.g, cereals, oil seeds, hides and skins), most capital goods, raw materials (e.g., fertilizer), pharmaceuticals, pesticides, agricultural and construction machinery		2 percent
				basic consumer items (e.g., sugar, coffee), some capital goods, and raw materials		3 percent
				fish and fish products, manufactured consumer items, and intermediate goods		5-50 percent
				mineral water, video cameras, marble, jewels, and some other manufactured items		80 percent
				soft drinks, beer, perfumes, and cosmetics		90 percent
				CD recorders, electrical household appliances		100 percent
				video recorders		160 percent
				beverages with high alcoholic content, and tobacco products		200 percent
				specific rates for grease (ERN 0.15 per kg.) and small family cars (10 percent of CC).
3.2	Sales tax on imports (Proclamation No. 64/1994; Legal Notice 18/1994; October 5, 1994; Legal Notice No. 22/1995)	The sales tax applies to all imported commodities, and is computed based on the c.i.f. price plus customs duty and, if applicable, excise tax. Paid on clearance from customs.	Same exemptions as for customs duties, and as for sales tax on domestically produced goods. Reexports are also exempted. Sales tax paid on imports that are used for export production is refunded.	Same as for domestic sales tax.
3.3	Excise tax on imports	Paid by the importer when goods are cleared from customs.	Same as for domestically produced goods.	Same as for domestically produced goods, except for imported salt (3 percent).
3.4	Export tax	Abolished on October 5, 1994.
4.	Other taxes
4.1	Stamp duties (Proclamation No 65/1994; October 5, 1994; Legal Notice No. 23/1995)	Duties are levied on a range of legal documents and instruments, including contracts, agreements, bills of exchange, etc.	None.	Twenty different ad valorem and specific rates.

Source: Eritrean authorities.

APPENDIX II Eritrea: Exchange and Trade System

(Position as of December 1999)

	Subject Measure	Existence	Description
I. Status Under IMF Articles of Agreement
Date of membership			July 6, 1994
1.	Article VII
2.	Article XIV	Yes
II. Exchange Arrangements
1.	Currency	Yes	A national currency, the nakfa, was introduced in the period between November 8 and 22, 1997; during this conversion period, the nakfa was exchanged at par with the Ethiopian birr. The Ethiopian birr ceased to be legal tender as of November 22, 1997.
	Other legal tender	No
2.	Exchange rate structure
a.	Unitary	Yes
b.	Dual
c.	Multiple
3.	Classification
a.	Pegged
b.	Limited flexibility with respect to a single currency
c.	Cooperative arrangement
d.	Adjusted according to a set of indicators
e.	Managed floating
f.	Independent floating	Yes	Through March, 1997, the official exchange rate of Eritrea was the marginal auction exchange rate of Ethiopia’s birr, determined in the weekly foreign exchange auction conducted by the National Bank of Ethiopia. On April 1, 1997, the official and preferential exchange rates were unified at Br 7.1 per US$1. A national currency, the nakfa, was introduced on November 22, 1997, and its exchange rate is market determined. On January 27, 2000, the average buying and selling exchange rates were ERN 9.70 per US$1.
4.	Exchange tax	Yes	The Bank of Eritrea (BE) prescribes a commission of 0.25 percent for purchases of foreign exchange and 0.75 percent for sales of foreign exchange, except for banknote transactions. The authorized dealers are permitted, but not required, to levy a service charge of up to 0.25 percent for buying and 0.75 percent for selling for their own account.
5.	Exchange subsidy	No
6.	Forward exchange market	No
	Official coverage	No
III. Arrangements for Payments and Receipts
1.	Prescription of currency requirements	Yes	Since November 22, 1997, all transactions with Ethiopia are settled in convertible currencies, except for border trade valued at or below Ethiopian birr 2,000. Prior to that, all transactions with Ethiopia, except those related to the imports of spare parts for the refinery in Assab and the purchase of certain Ethiopian exports, were settled in Ethiopian birr.
2.	Payments arrangements	Yes
a.	Bilateral payment agreement	No
	(1) Operative	No
	(2) Inoperative	No
b.	Regional arrangement	Yes
c.	Clearing agreement	Yes	Payments between Eritrea, on the one hand, and Angola, Burundi, Comoros, Democratic Republic of Congo, Ethiopia, Kenya, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Rwanda, Sudan, Swaziland, Tanzania, Uganda, Zambia, and Zimbabwe, on the other, may be made within the framework of the Common Market for Eastern and Southern Africa (COMESA).
d.	Barter agreement and open accounts	No
3.	Administration of control	Yes
	Exchange control authorities	Yes	The BE oversees all foreign exchange transactions of the authorized dealers and issues dealers’ licenses. It may from time to time issue regulations, directives, and instructions on foreign exchange matters. The Exchange Control Department of the BE issues permits only for those imports that require foreign exchange from the banking system. The National Licensing Office issues licenses for importers, exporters, and commercial agents, and the Ministry of Trade and Industry regulates foreign investments. The Asmara Chamber of Commerce issues certificates of origin for exports.
4.	International security restrictions	No
a.	In accordance with Executive Board decision No.144(52/51)	No
b.	According to UN sanctions	No
c.	Other	No
5.	Payment arrears	No
a.	Official	No
b.	Private	No
6.	Controls on trade in gold (coins/bullions)	Yes
a.	On domestic ownership/trade	Yes	Authorization from the Ministry of Energy and Mines is required for ownership or possession of gold or other precious metals or ores. Residents may own gold jewelry without restrictions.
b.	On external trade	Yes
7.	Controls on banknotes	No	Travelers are not required to declare their foreign currency holdings upon departure.
a.	On exports	No
	(1) Domestic currency	No
	(2) Foreign currency	No	Travelers are allowed to reconvert their balances into foreign currencies upon departure.
b.	On imports	No
	(1) Domestic currency	No
	(2) Foreign currency	No	Travelers are not required to declare their foreign currency holdings upon entry into Eritrea.
IV. Resident Accounts
1.	Eligibility to open accounts	Yes
a.	Juridical persons	Yes
b.	Natural persons	Yes
2.	Foreign exchange accounts permitted	Yes
a.	Held domestically	Yes	Only investors and individuals earning foreign exchange in connection with foreign trade are allowed to open accounts.
	Approval required	No
b.	Held abroad	Yes	Restricted to resident banks.
	Approval required	Yes	Nonbank residents may not open accounts abroad, except if specifically authorized by the BE.
3.	Accounts in domestic currency convertible in foreign currency	No
V. Nonresident Accounts
1.	Eligibility to open accounts	Yes
a.	Juridical persons	Yes
b.	Natural persons	Yes
2.	Foreign exchange accounts permitted	Yes	Resident Eritreans working temporarily abroad may be permitted to maintain nonresident U.S. dollar accounts in Eritrea.
	Approval required	Yes	BE approval is required.
3.	Domestic currency accounts	Yes	Available only to members of the diplomatic community, welfare organizations, and nongovernmental organizations and their personnel, as well as to joint ventures and other business firms that invest their capital, wholly or partially, in foreign exchange.
	Convertible into foreign currency	Yes
	Approval required	No
4.	Blocked accounts	No
VI. Imports and Import Payments
1.	Foreign exchange budget	No
2.	Financing requirements for imports	No	Most imports financed with official foreign exchange are effected under letters of credit (LCs) or on a cash-against-documents (CAD) basis. Suppliers’ credits must be registered with the BE.
a.	Minimum financing requirements	No
b.	Advance payments requirements	No
c.	Advance import deposits	Yes	Only for LC type of imports.
3.	Documentation requirements for release of foreign exchange for imports	Yes
a.	Domiciliation requirements	No
b.	Preshipment inspection	No
c.	Letters of credit	No
d.	Import licenses used as exchange licenses	Yes	Import payments made through the banking system require a permit issued by the BE upon presentation of pro forma invoices providing information as to type, quantity, unit price, and freight cost (where applicable).
e.	Other	Yes	Suppliers’ credits must be registered with the BE.
4.	Import licenses and other nontariff measures	Yes
a.	Positive list	No
b.	Negative list	No
c.	Open general licenses	Yes	All importers must have a valid trade license issued by the National Licensing Office. These licenses must be renewed each year at a fee of ERN 200. Imports of cars and other motor vehicles require prior permission from the Ministry of Transportation.
d.	Licenses with quotas	No
e.	Other nontariff measures	No
5.	Import taxes/tariffs	n.a.
	Taxes collected through the exchange system	Yes	A commission of 2 percent is collected on imports that do not require official foreign exchange and are not aid funded (franco valuta imports).
6.	State import monopoly	No	The company that produces tobacco and matches holds the monopoly over the imports of these products.
VII. Exports and Export Proceeds
1.	Repatriation requirements	Yes	All export proceeds must be repatriated within 90 days of shipment; where justified, this deadline can be extended by another 90 days.
	Surrender requirements	No
2.	Financing requirements	No	Exports may be made under LCs, on an advance payment basis, or on consignment basis.
3.	Documentation requirements	Yes	All exports require documentation by the BE. Certain commodities require clearance from specific government bodies (e.g., the Eritrean Institute of Standards). In particular, livestock and cereals require permission from the Ministry of Agriculture, and marine products require permission from the Ministry of Marine Resources.
a.	Letter of credit	No
b.	Guarantees	No
c.	Domiciliation	No
d.	Preshipment inspection	No
e.	Other	No
4.	Export licenses	Yes	Exporters must be licensed by the National Licensing Office. The annual licensing fee is ERN 200.
a.	Without quotas	Yes
b.	With quotas	No
5.	Export taxes	No
a.	Collected through the	No
	exchange system
b.	Other export taxes	No
VIII. Payments for Invisible Transactions and Current Transfers
Controls on these payments		Yes
1.	Freight/insurance	Yes
a.	Prior approval	Yes
b.	Quantitative limits	No
c.	Indicative limits/bona fide test	No
2.	Unloading/storage costs	Yes
a.	Prior approval	Yes
b.	Quantitative limits	No
c.	Indicative limits/bona fide test	No
3.	Administrative expenses	Yes
a.	Prior approval	Yes
b.	Quantitative limits	No
c.	Indicative limits/bona fide test	No
4.	Commissions	Yes
a.	Prior approval	Yes
b.	Quantitative limits	No
c.	Indicative limits/bona fide test	No
5.	Interest payments	Yes
a.	Prior approval	Yes
b.	Quantitative limits	No
c.	Indicative limits/bona fide test	No
6.	Profits/dividends	No	For investments certified under the Investment Proclamation No. 59 (1994), foreign investors may freely remit proceeds received from the liquidation of investment and/or expansion, and payments received from the sale or transfer of shares. Petroleum contractors and subcontractors may freely transfer abroad funds accruing from petroleum operations and may pay subcontractors and expatriate staff abroad.
a.	Prior approval	No
b.	Quantitative limits	No
c.	Indicative limits/bona fide test	No
7.	Amortization of loans or depreciation of direct investments	n.a.
a.	Prior approval	n.a.
b.	Quantitative limits	n.a.
c.	Indicative limits/bona fide test	n.a.
8.	Payments for travel	Yes
a.	Prior approval	No
b.	Quantitative limits	Yes	For business trips, $250 a person a day for up to 30 days a trip. Exporters may use freely their retention balances for travel purposes. For personal travel, the allowance is $100 a person (adult or minor) a trip. Eritrean nationals can purchase air travel tickets in local and foreign currency.
c.	Indicative limits/bona fide test	No
9.	Medical costs	Yes
a.	Prior approval	Yes	Recommendation of the Medical Board of the Ministry of Health is required.
b.	Quantitative limits	Yes	Up to $10,000 for treatment abroad, other than Ethiopia. The limit may be exceeded in special circumstances.
c.	Indicative limits/bona fide tests	Yes
10.	Study abroad costs	Yes
a.	Prior approval	Yes	Approval is granted for higher-education expenses only.
b.	Quantitative limits	No
c.	Indicative limits/bona fide tests	No
11.	Subscription and membership fees	Yes
a.	Prior approval	Yes
b.	Quantitative limits	No
c.	Indicative limits/bona fide tests	No
12.	Consulting/legal fees	Yes
a.	Prior approval	Yes
b.	Quantitative limits	No
c.	Indicative limits/bona fide tests	No
13.	Foreign workers’ wages	No
a.	Prior approval	No
b.	Quantitative limits	No
c.	Indicative limits/bona fide tests	No
14.	Pensions	No
a.	Prior approval	No
b.	Quantitative limits	No
c.	Indicative limits/bona fide tests	No
15.	Gambling/prize earnings	n.a.
a.	Prior approval	n.a.
b.	Quantitative limits	n.a.
c.	Indicative limits/bona fide tests	n.a.
16.	Family maintenance/alimony	No
a.	Prior approval	No
b.	Quantitative limits	No
c.	Indicative limits/bona fide tests	No
17.	Credit card use abroad	n.a.
a.	Prior approval	n.a.
b.	Quantitative limits	n.a.
c.	Indicative limits/bona fide tests	n.a.
IX. Proceeds from Invisible Transactions and Current Transfers
1.	Repatriation requirements	No
2.	Surrender requirements	No
3.	Restrictions on use of funds	No
X. Capital Transactions
1.	Controls on capital and money market instruments	Yes
a.	On capital market securities	Yes
(1) Shares or other securities of a participating nature		Yes
(a) Purchases locally by nonresidents		Yes
(b) Sales or issues locally by nonresidents		n.a.
(c) Purchases abroad by residents		Yes	Authorized banks may acquire securities with the approval of the BE.
(d) Sales or issues locally by residents		n.a.
(2) Bonds or other debt securities		n.a.
(a) Purchases locally by nonresidents		n.a.
(b) Sales or issues locally by nonresidents		n.a.
(c) Purchases abroad by residents		n.a.
(d) Sales or issues locally by residents		n.a.
b.	On money market instruments	Yes
(1) Purchases locally by nonresidents		n.a.
(2) Sales or issues locally by nonresidents		n.a.
(3) Purchases abroad by residents		Yes
(4) Sales or issues locally by residents		n.a.
c.	On collective investment securities	n.a.
(1) Purchases locally by nonresidents		n.a.
(2) Sales or issues locally by nonresidents		n.a.
(3) Purchases abroad by residents		n.a.
(4) Sales or issues locally by residents		n.a.
2.	Controls on derivatives and other instruments	n.a.
a.	Purchases locally by nonresidents	n.a.
b.	Sales or issues locally by nonresidents	n.a.
c.	Purchases abroad by residents	n.a.
d.	Sales or issues locally by residents	n.a.
3.	Controls on credit operations	Yes
a.	Commercial credit	Yes
(1) By residents to nonresidents		n.a.
(2) To residents from nonresidents		Yes	Foreign borrowing by residents must be registered with the BE.
b.	Financial credit	Yes
(1) By residents to nonresidents		n.a.
(2) To residents from nonresidents		Yes	Authorized banks may borrow abroad or overdraw their correspondent accounts abroad with the approval of the BE.
c.	Guarantees, sureties, and financial backup securities	n.a.
(1) By residents to nonresidents		n.a.
(2) To residents from nonresidents		n.a.
4.	Controls on direct investment	Yes
a.	Outward direct investment	n.a.
b.	Inward direct investment	Yes	Foreign direct investment is permitted in all sectors. However, domestic retail and wholesale trade, and import and commission agencies are open to foreign investors only when Eritrea has a bilateral agreement of reciprocity with the country of the investor; the latter condition may be waived by the government. Approved investments and their subsequent expansion enjoy exemption from customs duties and sales tax for capital goods and spare parts associated with the investment There are no exemptions from income tax.
5.	Controls on liquidation of direct investment	No
6.	Controls on real estate transactions	Yes
a.	Purchases abroad by residents	Yes
b.	Purchases locally by nonresidents	Yes
c.	Sales locally by nonresidents	No
7.	Controls on personal capital movements	n.a.
a.	Loans	n.a.
(1) By residents to nonresidents		n.a.
(2) To residents from nonresidents		n.a.
b.	Gifts, endowments, inheritances, and legacies	n.a.
(1) By residents to nonresidents		n.a.
(2) To residents from nonresidents		n.a.
c.	Settlements of debt abroad by immigrants	n.a.
d.	Transfer of assets	n.a.
(1) Transfer abroad by emigrants		n.a.
(2) Transfer into the country by immigrants		n.a.
8.	Specific controls on transactions by commercial banks and other credit institutions	Yes
a.	Borrowing abroad	Yes	Borrowing is subject to prior approval of the BE.
b.	Maintenance of accounts abroad	No
c.	Lending to nonresidents (loans, financial or commercial credit)	Yes
d.	Lending locally in foreign exchange	Yes
e.	Purchases of locally issued securities denominated in foreign exchange	n.a.
f.	Differential treatment of deposit accounts in foreign exchange	No
(1) Reserve requirements		No
(2) Liquid asset requirements		No
(3) Interest rate controls		No
(4) Credit controls		No
g.	Differential treatment of nonresident deposit accounts or deposit accounts in foreign exchange	n.a.
(1) Reserve requirements		n.a.
(2) Liquid asset requirements		n.a.
(3) Interest rate controls		n.a.
(4) Credit controls		n.a.
h.	Investment regulations	No
(1) Abroad by banks		No
(2) In banks by nonresidents		No
i.	Open foreign exchange position limits	No
(1) On nonresident assets and liabilities		No
(2) On resident assets and liabilities		No
9.	Provisions specific to institutional investors	n.a.
a.	Limits (max.) on securities issued by nonresidents and on portfolio invested abroad	n.a.
b.	Limits (max.) on portfolio invested abroad	n.a.
c.	Limits (min.) on portfolio invested locally	n.a.
d.	Currently matching regulations on assets/liabilities composition	n.a.
10.	Other controls imposed by securities laws	n.a.

	Subject Measure	Existence	Description
I. Status Under IMF Articles of Agreement
Date of membership			July 6, 1994
1.	Article VII
2.	Article XIV	Yes
II. Exchange Arrangements
1.	Currency	Yes	A national currency, the nakfa, was introduced in the period between November 8 and 22, 1997; during this conversion period, the nakfa was exchanged at par with the Ethiopian birr. The Ethiopian birr ceased to be legal tender as of November 22, 1997.
	Other legal tender	No
2.	Exchange rate structure
a.	Unitary	Yes
b.	Dual
c.	Multiple
3.	Classification
a.	Pegged
b.	Limited flexibility with respect to a single currency
c.	Cooperative arrangement
d.	Adjusted according to a set of indicators
e.	Managed floating
f.	Independent floating	Yes	Through March, 1997, the official exchange rate of Eritrea was the marginal auction exchange rate of Ethiopia’s birr, determined in the weekly foreign exchange auction conducted by the National Bank of Ethiopia. On April 1, 1997, the official and preferential exchange rates were unified at Br 7.1 per US$1. A national currency, the nakfa, was introduced on November 22, 1997, and its exchange rate is market determined. On January 27, 2000, the average buying and selling exchange rates were ERN 9.70 per US$1.
4.	Exchange tax	Yes	The Bank of Eritrea (BE) prescribes a commission of 0.25 percent for purchases of foreign exchange and 0.75 percent for sales of foreign exchange, except for banknote transactions. The authorized dealers are permitted, but not required, to levy a service charge of up to 0.25 percent for buying and 0.75 percent for selling for their own account.
5.	Exchange subsidy	No
6.	Forward exchange market	No
	Official coverage	No
III. Arrangements for Payments and Receipts
1.	Prescription of currency requirements	Yes	Since November 22, 1997, all transactions with Ethiopia are settled in convertible currencies, except for border trade valued at or below Ethiopian birr 2,000. Prior to that, all transactions with Ethiopia, except those related to the imports of spare parts for the refinery in Assab and the purchase of certain Ethiopian exports, were settled in Ethiopian birr.
2.	Payments arrangements	Yes
a.	Bilateral payment agreement	No
	(1) Operative	No
	(2) Inoperative	No
b.	Regional arrangement	Yes
c.	Clearing agreement	Yes	Payments between Eritrea, on the one hand, and Angola, Burundi, Comoros, Democratic Republic of Congo, Ethiopia, Kenya, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Rwanda, Sudan, Swaziland, Tanzania, Uganda, Zambia, and Zimbabwe, on the other, may be made within the framework of the Common Market for Eastern and Southern Africa (COMESA).
d.	Barter agreement and open accounts	No
3.	Administration of control	Yes
	Exchange control authorities	Yes	The BE oversees all foreign exchange transactions of the authorized dealers and issues dealers’ licenses. It may from time to time issue regulations, directives, and instructions on foreign exchange matters. The Exchange Control Department of the BE issues permits only for those imports that require foreign exchange from the banking system. The National Licensing Office issues licenses for importers, exporters, and commercial agents, and the Ministry of Trade and Industry regulates foreign investments. The Asmara Chamber of Commerce issues certificates of origin for exports.
4.	International security restrictions	No
a.	In accordance with Executive Board decision No.144(52/51)	No
b.	According to UN sanctions	No
c.	Other	No
5.	Payment arrears	No
a.	Official	No
b.	Private	No
6.	Controls on trade in gold (coins/bullions)	Yes
a.	On domestic ownership/trade	Yes	Authorization from the Ministry of Energy and Mines is required for ownership or possession of gold or other precious metals or ores. Residents may own gold jewelry without restrictions.
b.	On external trade	Yes
7.	Controls on banknotes	No	Travelers are not required to declare their foreign currency holdings upon departure.
a.	On exports	No
	(1) Domestic currency	No
	(2) Foreign currency	No	Travelers are allowed to reconvert their balances into foreign currencies upon departure.
b.	On imports	No
	(1) Domestic currency	No
	(2) Foreign currency	No	Travelers are not required to declare their foreign currency holdings upon entry into Eritrea.
IV. Resident Accounts
1.	Eligibility to open accounts	Yes
a.	Juridical persons	Yes
b.	Natural persons	Yes
2.	Foreign exchange accounts permitted	Yes
a.	Held domestically	Yes	Only investors and individuals earning foreign exchange in connection with foreign trade are allowed to open accounts.
	Approval required	No
b.	Held abroad	Yes	Restricted to resident banks.
	Approval required	Yes	Nonbank residents may not open accounts abroad, except if specifically authorized by the BE.
3.	Accounts in domestic currency convertible in foreign currency	No
V. Nonresident Accounts
1.	Eligibility to open accounts	Yes
a.	Juridical persons	Yes
b.	Natural persons	Yes
2.	Foreign exchange accounts permitted	Yes	Resident Eritreans working temporarily abroad may be permitted to maintain nonresident U.S. dollar accounts in Eritrea.
	Approval required	Yes	BE approval is required.
3.	Domestic currency accounts	Yes	Available only to members of the diplomatic community, welfare organizations, and nongovernmental organizations and their personnel, as well as to joint ventures and other business firms that invest their capital, wholly or partially, in foreign exchange.
	Convertible into foreign currency	Yes
	Approval required	No
4.	Blocked accounts	No
VI. Imports and Import Payments
1.	Foreign exchange budget	No
2.	Financing requirements for imports	No	Most imports financed with official foreign exchange are effected under letters of credit (LCs) or on a cash-against-documents (CAD) basis. Suppliers’ credits must be registered with the BE.
a.	Minimum financing requirements	No
b.	Advance payments requirements	No
c.	Advance import deposits	Yes	Only for LC type of imports.
3.	Documentation requirements for release of foreign exchange for imports	Yes
a.	Domiciliation requirements	No
b.	Preshipment inspection	No
c.	Letters of credit	No
d.	Import licenses used as exchange licenses	Yes	Import payments made through the banking system require a permit issued by the BE upon presentation of pro forma invoices providing information as to type, quantity, unit price, and freight cost (where applicable).
e.	Other	Yes	Suppliers’ credits must be registered with the BE.
4.	Import licenses and other nontariff measures	Yes
a.	Positive list	No
b.	Negative list	No
c.	Open general licenses	Yes	All importers must have a valid trade license issued by the National Licensing Office. These licenses must be renewed each year at a fee of ERN 200. Imports of cars and other motor vehicles require prior permission from the Ministry of Transportation.
d.	Licenses with quotas	No
e.	Other nontariff measures	No
5.	Import taxes/tariffs	n.a.
	Taxes collected through the exchange system	Yes	A commission of 2 percent is collected on imports that do not require official foreign exchange and are not aid funded (franco valuta imports).
6.	State import monopoly	No	The company that produces tobacco and matches holds the monopoly over the imports of these products.
VII. Exports and Export Proceeds
1.	Repatriation requirements	Yes	All export proceeds must be repatriated within 90 days of shipment; where justified, this deadline can be extended by another 90 days.
	Surrender requirements	No
2.	Financing requirements	No	Exports may be made under LCs, on an advance payment basis, or on consignment basis.
3.	Documentation requirements	Yes	All exports require documentation by the BE. Certain commodities require clearance from specific government bodies (e.g., the Eritrean Institute of Standards). In particular, livestock and cereals require permission from the Ministry of Agriculture, and marine products require permission from the Ministry of Marine Resources.
a.	Letter of credit	No
b.	Guarantees	No
c.	Domiciliation	No
d.	Preshipment inspection	No
e.	Other	No
4.	Export licenses	Yes	Exporters must be licensed by the National Licensing Office. The annual licensing fee is ERN 200.
a.	Without quotas	Yes
b.	With quotas	No
5.	Export taxes	No
a.	Collected through the	No
	exchange system
b.	Other export taxes	No
VIII. Payments for Invisible Transactions and Current Transfers
Controls on these payments		Yes
1.	Freight/insurance	Yes
a.	Prior approval	Yes
b.	Quantitative limits	No
c.	Indicative limits/bona fide test	No
2.	Unloading/storage costs	Yes
a.	Prior approval	Yes
b.	Quantitative limits	No
c.	Indicative limits/bona fide test	No
3.	Administrative expenses	Yes
a.	Prior approval	Yes
b.	Quantitative limits	No
c.	Indicative limits/bona fide test	No
4.	Commissions	Yes
a.	Prior approval	Yes
b.	Quantitative limits	No
c.	Indicative limits/bona fide test	No
5.	Interest payments	Yes
a.	Prior approval	Yes
b.	Quantitative limits	No
c.	Indicative limits/bona fide test	No
6.	Profits/dividends	No	For investments certified under the Investment Proclamation No. 59 (1994), foreign investors may freely remit proceeds received from the liquidation of investment and/or expansion, and payments received from the sale or transfer of shares. Petroleum contractors and subcontractors may freely transfer abroad funds accruing from petroleum operations and may pay subcontractors and expatriate staff abroad.
a.	Prior approval	No
b.	Quantitative limits	No
c.	Indicative limits/bona fide test	No
7.	Amortization of loans or depreciation of direct investments	n.a.
a.	Prior approval	n.a.
b.	Quantitative limits	n.a.
c.	Indicative limits/bona fide test	n.a.
8.	Payments for travel	Yes
a.	Prior approval	No
b.	Quantitative limits	Yes	For business trips, $250 a person a day for up to 30 days a trip. Exporters may use freely their retention balances for travel purposes. For personal travel, the allowance is $100 a person (adult or minor) a trip. Eritrean nationals can purchase air travel tickets in local and foreign currency.
c.	Indicative limits/bona fide test	No
9.	Medical costs	Yes
a.	Prior approval	Yes	Recommendation of the Medical Board of the Ministry of Health is required.
b.	Quantitative limits	Yes	Up to $10,000 for treatment abroad, other than Ethiopia. The limit may be exceeded in special circumstances.
c.	Indicative limits/bona fide tests	Yes
10.	Study abroad costs	Yes
a.	Prior approval	Yes	Approval is granted for higher-education expenses only.
b.	Quantitative limits	No
c.	Indicative limits/bona fide tests	No
11.	Subscription and membership fees	Yes
a.	Prior approval	Yes
b.	Quantitative limits	No
c.	Indicative limits/bona fide tests	No
12.	Consulting/legal fees	Yes
a.	Prior approval	Yes
b.	Quantitative limits	No
c.	Indicative limits/bona fide tests	No
13.	Foreign workers’ wages	No
a.	Prior approval	No
b.	Quantitative limits	No
c.	Indicative limits/bona fide tests	No
14.	Pensions	No
a.	Prior approval	No
b.	Quantitative limits	No
c.	Indicative limits/bona fide tests	No
15.	Gambling/prize earnings	n.a.
a.	Prior approval	n.a.
b.	Quantitative limits	n.a.
c.	Indicative limits/bona fide tests	n.a.
16.	Family maintenance/alimony	No
a.	Prior approval	No
b.	Quantitative limits	No
c.	Indicative limits/bona fide tests	No
17.	Credit card use abroad	n.a.
a.	Prior approval	n.a.
b.	Quantitative limits	n.a.
c.	Indicative limits/bona fide tests	n.a.
IX. Proceeds from Invisible Transactions and Current Transfers
1.	Repatriation requirements	No
2.	Surrender requirements	No
3.	Restrictions on use of funds	No
X. Capital Transactions
1.	Controls on capital and money market instruments	Yes
a.	On capital market securities	Yes
(1) Shares or other securities of a participating nature		Yes
(a) Purchases locally by nonresidents		Yes
(b) Sales or issues locally by nonresidents		n.a.
(c) Purchases abroad by residents		Yes	Authorized banks may acquire securities with the approval of the BE.
(d) Sales or issues locally by residents		n.a.
(2) Bonds or other debt securities		n.a.
(a) Purchases locally by nonresidents		n.a.
(b) Sales or issues locally by nonresidents		n.a.
(c) Purchases abroad by residents		n.a.
(d) Sales or issues locally by residents		n.a.
b.	On money market instruments	Yes
(1) Purchases locally by nonresidents		n.a.
(2) Sales or issues locally by nonresidents		n.a.
(3) Purchases abroad by residents		Yes
(4) Sales or issues locally by residents		n.a.
c.	On collective investment securities	n.a.
(1) Purchases locally by nonresidents		n.a.
(2) Sales or issues locally by nonresidents		n.a.
(3) Purchases abroad by residents		n.a.
(4) Sales or issues locally by residents		n.a.
2.	Controls on derivatives and other instruments	n.a.
a.	Purchases locally by nonresidents	n.a.
b.	Sales or issues locally by nonresidents	n.a.
c.	Purchases abroad by residents	n.a.
d.	Sales or issues locally by residents	n.a.
3.	Controls on credit operations	Yes
a.	Commercial credit	Yes
(1) By residents to nonresidents		n.a.
(2) To residents from nonresidents		Yes	Foreign borrowing by residents must be registered with the BE.
b.	Financial credit	Yes
(1) By residents to nonresidents		n.a.
(2) To residents from nonresidents		Yes	Authorized banks may borrow abroad or overdraw their correspondent accounts abroad with the approval of the BE.
c.	Guarantees, sureties, and financial backup securities	n.a.
(1) By residents to nonresidents		n.a.
(2) To residents from nonresidents		n.a.
4.	Controls on direct investment	Yes
a.	Outward direct investment	n.a.
b.	Inward direct investment	Yes	Foreign direct investment is permitted in all sectors. However, domestic retail and wholesale trade, and import and commission agencies are open to foreign investors only when Eritrea has a bilateral agreement of reciprocity with the country of the investor; the latter condition may be waived by the government. Approved investments and their subsequent expansion enjoy exemption from customs duties and sales tax for capital goods and spare parts associated with the investment There are no exemptions from income tax.
5.	Controls on liquidation of direct investment	No
6.	Controls on real estate transactions	Yes
a.	Purchases abroad by residents	Yes
b.	Purchases locally by nonresidents	Yes
c.	Sales locally by nonresidents	No
7.	Controls on personal capital movements	n.a.
a.	Loans	n.a.
(1) By residents to nonresidents		n.a.
(2) To residents from nonresidents		n.a.
b.	Gifts, endowments, inheritances, and legacies	n.a.
(1) By residents to nonresidents		n.a.
(2) To residents from nonresidents		n.a.
c.	Settlements of debt abroad by immigrants	n.a.
d.	Transfer of assets	n.a.
(1) Transfer abroad by emigrants		n.a.
(2) Transfer into the country by immigrants		n.a.
8.	Specific controls on transactions by commercial banks and other credit institutions	Yes
a.	Borrowing abroad	Yes	Borrowing is subject to prior approval of the BE.
b.	Maintenance of accounts abroad	No
c.	Lending to nonresidents (loans, financial or commercial credit)	Yes
d.	Lending locally in foreign exchange	Yes
e.	Purchases of locally issued securities denominated in foreign exchange	n.a.
f.	Differential treatment of deposit accounts in foreign exchange	No
(1) Reserve requirements		No
(2) Liquid asset requirements		No
(3) Interest rate controls		No
(4) Credit controls		No
g.	Differential treatment of nonresident deposit accounts or deposit accounts in foreign exchange	n.a.
(1) Reserve requirements		n.a.
(2) Liquid asset requirements		n.a.
(3) Interest rate controls		n.a.
(4) Credit controls		n.a.
h.	Investment regulations	No
(1) Abroad by banks		No
(2) In banks by nonresidents		No
i.	Open foreign exchange position limits	No
(1) On nonresident assets and liabilities		No
(2) On resident assets and liabilities		No
9.	Provisions specific to institutional investors	n.a.
a.	Limits (max.) on securities issued by nonresidents and on portfolio invested abroad	n.a.
b.	Limits (max.) on portfolio invested abroad	n.a.
c.	Limits (min.) on portfolio invested locally	n.a.
d.	Currently matching regulations on assets/liabilities composition	n.a.
10.	Other controls imposed by securities laws	n.a.

STATISTICAL APPENDIX

Table 1.

Eritrea: Gross Domestic Product by Sector, 1995-99

Source: Staff estimates based on information provided by the Eritrean authorities.

^1/Prior to 1997, in millions of birr.

^2/Estimated as 50 percent of private remittances.

Table 1.

Eritrea: Gross Domestic Product by Sector, 1995-99

			1995	1996	1997	1998	1999
							Prel.
			(In millions of nakfa, unless otherwise indicated) ^1/
Agriculture			390.9	371.8	390.3	734.9	853.6
	Crops and livestock		267.8	241.3	261.0	589.9	681.0
		Staple crops	145.4	107.7	117.0	309.1	355.3
		Cash crops	72.1	75.7	78.0	206.0	236.8
		Livestock	50.3	57.8	65.9	74.7	88.8
	Forestry and fishing		123.1	130.5	129.4	145.0	172.6
		Forestry	115.2	121.0	124.6	138.3	161.2
		Fishing	7.9	9.5	4.8	6.7	11.4
Industry			792.2	1,043.6	1,241.0	1,250.8	1,454.7
	Mining and quarrying		2.1	3.6	4.5	3.8	4.7
	Manufacturing		343.4	399.9	469.5	461.0	524.8
	Handicrafts and small industry		158.5	171.5	186.5	183.7	216.4
	Electricity and water		52.5	56.2	65.1	71.7	84.0
	Building and construction		235.6	412.3	515.4	530.5	624.9
Distribution services			1,375.3	1,525.5	1,623.0	1,463.4	1,682.1
	Trade, wholesale, and retail		921.9	1,050.2	1,134.1	991.2	1,139.4
	Transport and communications		453.4	475.3	488.9	472.1	542.7
Other services			938.5	862.4	947.0	1,114.4	1,330.3
	Financial services		57.8	68.1	85.7	97.6	114.4
	Dwellings and domestic services		79.0	95.6	103.7	115.8	135.1
	Public administration and services		758.8	648.3	706.8	844.2	1,014.4
	Domestic and other		43.0	50.5	50.8	56.8	66.5
GDP at current factor cost			3,496.9	3,803.3	4,201.4	4,563.4	5,320.7
	Indirect taxes less subsidies		375.9	450.4	511.5	464.6	507.6
GDP at current market prices			3,872.8	4,253.7	4,712.9	5,028.0	5,828.3
	Net factor payments ^2/		776.8	873.9	1,262.4	913.9	988.5
GNP at current market prices			4,649.5	5,127.7	5,975.3	5,941.9	6,816.8
Memorandum items:
	GDP at constant factor cost		1,948.8	2,080.5	2,244.3	2,331.8	2,400.6
		(annual percentage change)	2.9	6.8	7.9	3.9	3.0
			(In percent of GDP at current factor cost)
	Agriculture		11.2	9.8	9.3	16.1	16.0
	Industry		22.7	27.4	29.5	27.4	27.3
	Distribution services		39.3	40.1	38.6	32.1	31.6
	Other services		26.8	22.7	22.5	24.4	25.0

Source: Staff estimates based on information provided by the Eritrean authorities.

^1/Prior to 1997, in millions of birr.

^2/Estimated as 50 percent of private remittances.

Table 1.

Eritrea: Gross Domestic Product by Sector, 1995-99

			1995	1996	1997	1998	1999
							Prel.
			(In millions of nakfa, unless otherwise indicated) ^1/
Agriculture			390.9	371.8	390.3	734.9	853.6
	Crops and livestock		267.8	241.3	261.0	589.9	681.0
		Staple crops	145.4	107.7	117.0	309.1	355.3
		Cash crops	72.1	75.7	78.0	206.0	236.8
		Livestock	50.3	57.8	65.9	74.7	88.8
	Forestry and fishing		123.1	130.5	129.4	145.0	172.6
		Forestry	115.2	121.0	124.6	138.3	161.2
		Fishing	7.9	9.5	4.8	6.7	11.4
Industry			792.2	1,043.6	1,241.0	1,250.8	1,454.7
	Mining and quarrying		2.1	3.6	4.5	3.8	4.7
	Manufacturing		343.4	399.9	469.5	461.0	524.8
	Handicrafts and small industry		158.5	171.5	186.5	183.7	216.4
	Electricity and water		52.5	56.2	65.1	71.7	84.0
	Building and construction		235.6	412.3	515.4	530.5	624.9
Distribution services			1,375.3	1,525.5	1,623.0	1,463.4	1,682.1
	Trade, wholesale, and retail		921.9	1,050.2	1,134.1	991.2	1,139.4
	Transport and communications		453.4	475.3	488.9	472.1	542.7
Other services			938.5	862.4	947.0	1,114.4	1,330.3
	Financial services		57.8	68.1	85.7	97.6	114.4
	Dwellings and domestic services		79.0	95.6	103.7	115.8	135.1
	Public administration and services		758.8	648.3	706.8	844.2	1,014.4
	Domestic and other		43.0	50.5	50.8	56.8	66.5
GDP at current factor cost			3,496.9	3,803.3	4,201.4	4,563.4	5,320.7
	Indirect taxes less subsidies		375.9	450.4	511.5	464.6	507.6
GDP at current market prices			3,872.8	4,253.7	4,712.9	5,028.0	5,828.3
	Net factor payments ^2/		776.8	873.9	1,262.4	913.9	988.5
GNP at current market prices			4,649.5	5,127.7	5,975.3	5,941.9	6,816.8
Memorandum items:
	GDP at constant factor cost		1,948.8	2,080.5	2,244.3	2,331.8	2,400.6
		(annual percentage change)	2.9	6.8	7.9	3.9	3.0
			(In percent of GDP at current factor cost)
	Agriculture		11.2	9.8	9.3	16.1	16.0
	Industry		22.7	27.4	29.5	27.4	27.3
	Distribution services		39.3	40.1	38.6	32.1	31.6
	Other services		26.8	22.7	22.5	24.4	25.0

Source: Staff estimates based on information provided by the Eritrean authorities.

^1/Prior to 1997, in millions of birr.

^2/Estimated as 50 percent of private remittances.

Table 2.

Eritrea: Agricultural Production and Prices, 1994-98

Source: Ministry of Agriculture.

^1/Including horsebeans, groundnuts, lentils, nihug, vetch, and soybeans.

^2/The livestock figures for 1997 are based on surveys conducted during April 1996 - April 1997, and the poultry figure excludes towns.

Table 2.

Eritrea: Agricultural Production and Prices, 1994-98

			1994	1995	1996	1997	1998
			(Volume in thousands of quintals; unit price in nakfa per quintal)
Total volume of staple crops			2,654.8	1,385.1	931.4	984.1	4,673.2
	Sorghum
		Retail unit price	145.9	144.5	184.5	195.0	242.0
		Volume	1,182.8	610.1	391.9	553.2	2,697.7
	Teff
		Retail unit price	258.7	335.6	283.8	320.0	658.0
		Volume	148.4	57.6	63.2	41.5	187.1
	Millet
		Retail unit price	180.8	227.5	204.8	200.0	368.0
		Volume	575.7	127.8	124.1	74.9	518.0
	Barley
		Retail unit price	136.0	140.0	165.5	215.0	280.0
		Volume	306.6	279.5	128.3	160.9	566.0
	Wheat
		Retail unit price	169.1	187.3	226.2	247.0	257.0
	Volume		135.2	99.6	78.5	51.3	229.5
	Peas
		Retail unit price	195.8	246.7	278.5	291.0	446.5
		Volume	16.2	34.5	33.1	12.1	21.8
	Sesame
		Retail unit price	400.0	400.0	320.0	400.0	…
		Volume	62.2	108.8	46.3	23.0	45.2
	Maize
		Retail unit price	155.5	175.9	164.5	186.0	275.0
		Volume	185.3	53.5	47.1	64.1	289.9
	Others ^1/
		Retail unit price	200.0	277.0	313.5	300.0	…
		Volume	42.4	13.8	18.9	3.2	118.0
Livestock ^2/				(In thousands of units)
	Cows		1,139.0	1,252.0	1,600.0	1,927.8	2,026.2
	Goats		4,982.0	5,480.0	6,302.0	4,661.8	7,061.9
	Poultry		3,000.0	3,300.0	3,696.0	1,134.3	1,160.9
Total area			12,189.0	12,189.0	12,189.0	12,189.0	12,189.0
	Cultivated area (thousands of hectares)		363.0	349.4	371.3	393.1	500.2
	Cultivated area (as percent of total)		3.0	2.9	3.0	3.2	4.1

Source: Ministry of Agriculture.

^1/Including horsebeans, groundnuts, lentils, nihug, vetch, and soybeans.

^2/The livestock figures for 1997 are based on surveys conducted during April 1996 - April 1997, and the poultry figure excludes towns.

Table 2.

Eritrea: Agricultural Production and Prices, 1994-98

			1994	1995	1996	1997	1998
			(Volume in thousands of quintals; unit price in nakfa per quintal)
Total volume of staple crops			2,654.8	1,385.1	931.4	984.1	4,673.2
	Sorghum
		Retail unit price	145.9	144.5	184.5	195.0	242.0
		Volume	1,182.8	610.1	391.9	553.2	2,697.7
	Teff
		Retail unit price	258.7	335.6	283.8	320.0	658.0
		Volume	148.4	57.6	63.2	41.5	187.1
	Millet
		Retail unit price	180.8	227.5	204.8	200.0	368.0
		Volume	575.7	127.8	124.1	74.9	518.0
	Barley
		Retail unit price	136.0	140.0	165.5	215.0	280.0
		Volume	306.6	279.5	128.3	160.9	566.0
	Wheat
		Retail unit price	169.1	187.3	226.2	247.0	257.0
	Volume		135.2	99.6	78.5	51.3	229.5
	Peas
		Retail unit price	195.8	246.7	278.5	291.0	446.5
		Volume	16.2	34.5	33.1	12.1	21.8
	Sesame
		Retail unit price	400.0	400.0	320.0	400.0	…
		Volume	62.2	108.8	46.3	23.0	45.2
	Maize
		Retail unit price	155.5	175.9	164.5	186.0	275.0
		Volume	185.3	53.5	47.1	64.1	289.9
	Others ^1/
		Retail unit price	200.0	277.0	313.5	300.0	…
		Volume	42.4	13.8	18.9	3.2	118.0
Livestock ^2/				(In thousands of units)
	Cows		1,139.0	1,252.0	1,600.0	1,927.8	2,026.2
	Goats		4,982.0	5,480.0	6,302.0	4,661.8	7,061.9
	Poultry		3,000.0	3,300.0	3,696.0	1,134.3	1,160.9
Total area			12,189.0	12,189.0	12,189.0	12,189.0	12,189.0
	Cultivated area (thousands of hectares)		363.0	349.4	371.3	393.1	500.2
	Cultivated area (as percent of total)		3.0	2.9	3.0	3.2	4.1

Source: Ministry of Agriculture.

^1/Including horsebeans, groundnuts, lentils, nihug, vetch, and soybeans.

^2/The livestock figures for 1997 are based on surveys conducted during April 1996 - April 1997, and the poultry figure excludes towns.

Table 3.

Eritrea: Regional Structure of the Agricultural Sector, 1996-98

Source: Ministry of Agriculture.

^1/Names of provinces are different between 1996 and 1997 onward due to the restructuring of local administrative zones in April 1996.

^2/Based on 3 percent annual population growth.

^3/Includes barley, wheat, peas, sesame, and maize.

^4/Includes Asmara.

^5/Population figure in 1998 does not include returnees.

Table 3.

Eritrea: Regional Structure of the Agricultural Sector, 1996-98

		1996
		Total	Total	Staple crops				Livestock population
Province ^1/		population ^2/	cultivated area	Sorghum	Teff	Millet	Other ^3/	Cows	Goats	Poultry
		(In thousands)	(In thousands of hectares)	(In thousands of quintals)				(In thousands)
Akeleguzay		362.0	35.1	60.0	7.6	8.4	60.6	…	…	…
Barka		246.7	61.1	22.0	…	6.4	0.3	…	…	…
Gash-Setit		322.5	108.6	138.0	…	23.5	44.4	…	…	…
Hamassen ^4/		775.5	36.6	0.2	1.0	3.3	90.9	…	…	…
Senhit		269.4	33.3	28.7	…	24.6	14.4	…	…	…
Semhar		125.1	9.5	25.0	…	10.0	6.8	…	…	…
Sahel		237.3	13.4	7.0	…	5.3	5.7	…	…	…
Seraye		446.9	72.9	110.2	54.4	42.4	169.2	…	…	…
Denkel		187.3	…	…	…	…	…	…	…	…
	Total	2,972.7	370.5	391.1	63.0	123.9	392.3	…	…	…
		1997
		Total	Total	Staple crops				Livestock population
	Province ^1/	population ^2/	cultivated area	Sorghum	Teff	Millet	Other ^3/	Cows	Goats	Poultry
		(In thousands)	(In thousands of hectares)	(In thousands of quintals)				(In thousands)
Debub		754.5	111.4	72.2	39.2	25.3	160.9	490	706	513
Gash-setit		641.2	183.7	424.0	0.1	29.4	27.1	917	1,746	424
Maekel		569.4	27.2	2.8	2.0	3.8	129.2	41	24	86
Anseba		445.7	43.6	16.5	0.1	6.5	8.1	219	620	78
Semienawi K.B.		462.7	27.2	37.4	…	9.6	34.0	179	995	27
Debubawi K.B.		204.6	…	…	…	…	…	82	571	6
	Total	3,078.1	393.1	552.9	41.4	74.6	359.3	1,927	4,662	1,134
		1998
		Total	Total	Staple crops				Livestock population
	Province ^1/	population ^5/	cultivated area	Sorghum	Teff	Millet	Other ^3/	Cows	Goats	Poultry
		(In thousands)	(In thousands of hectares)	(In thousands of quintals)				(In thousands)
Debub		799.5	129.1	214.7	180.9	46.7	592.5	513	1,072	529
Gash-setit		515.6	220.4	2,167.1	0.7	122.0	86.1	969	2,633	432
Maekel		502.3	30.2	8.2	4.9	8.4	400.1	42	35	95
Anseba		400.8	53.8	170.0	0.5	143.3	40.0	231	941	72
Semienawi K.B.		392.7	66.6	137.6	0.0	197.5	134.5	186	1,516	27
Debubawi K.B.		189.6	…	…	…	…	…	85	865	6
	Total	2,800.5	500.1	2,697.6	187.0	517.9	1,253.2	2,026	7,062	1,161

Source: Ministry of Agriculture.

^1/Names of provinces are different between 1996 and 1997 onward due to the restructuring of local administrative zones in April 1996.

^2/Based on 3 percent annual population growth.

^3/Includes barley, wheat, peas, sesame, and maize.

^4/Includes Asmara.

^5/Population figure in 1998 does not include returnees.

Table 3.

Eritrea: Regional Structure of the Agricultural Sector, 1996-98

		1996
		Total	Total	Staple crops				Livestock population
Province ^1/		population ^2/	cultivated area	Sorghum	Teff	Millet	Other ^3/	Cows	Goats	Poultry
		(In thousands)	(In thousands of hectares)	(In thousands of quintals)				(In thousands)
Akeleguzay		362.0	35.1	60.0	7.6	8.4	60.6	…	…	…
Barka		246.7	61.1	22.0	…	6.4	0.3	…	…	…
Gash-Setit		322.5	108.6	138.0	…	23.5	44.4	…	…	…
Hamassen ^4/		775.5	36.6	0.2	1.0	3.3	90.9	…	…	…
Senhit		269.4	33.3	28.7	…	24.6	14.4	…	…	…
Semhar		125.1	9.5	25.0	…	10.0	6.8	…	…	…
Sahel		237.3	13.4	7.0	…	5.3	5.7	…	…	…
Seraye		446.9	72.9	110.2	54.4	42.4	169.2	…	…	…
Denkel		187.3	…	…	…	…	…	…	…	…
	Total	2,972.7	370.5	391.1	63.0	123.9	392.3	…	…	…
		1997
		Total	Total	Staple crops				Livestock population
	Province ^1/	population ^2/	cultivated area	Sorghum	Teff	Millet	Other ^3/	Cows	Goats	Poultry
		(In thousands)	(In thousands of hectares)	(In thousands of quintals)				(In thousands)
Debub		754.5	111.4	72.2	39.2	25.3	160.9	490	706	513
Gash-setit		641.2	183.7	424.0	0.1	29.4	27.1	917	1,746	424
Maekel		569.4	27.2	2.8	2.0	3.8	129.2	41	24	86
Anseba		445.7	43.6	16.5	0.1	6.5	8.1	219	620	78
Semienawi K.B.		462.7	27.2	37.4	…	9.6	34.0	179	995	27
Debubawi K.B.		204.6	…	…	…	…	…	82	571	6
	Total	3,078.1	393.1	552.9	41.4	74.6	359.3	1,927	4,662	1,134
		1998
		Total	Total	Staple crops				Livestock population
	Province ^1/	population ^5/	cultivated area	Sorghum	Teff	Millet	Other ^3/	Cows	Goats	Poultry
		(In thousands)	(In thousands of hectares)	(In thousands of quintals)				(In thousands)
Debub		799.5	129.1	214.7	180.9	46.7	592.5	513	1,072	529
Gash-setit		515.6	220.4	2,167.1	0.7	122.0	86.1	969	2,633	432
Maekel		502.3	30.2	8.2	4.9	8.4	400.1	42	35	95
Anseba		400.8	53.8	170.0	0.5	143.3	40.0	231	941	72
Semienawi K.B.		392.7	66.6	137.6	0.0	197.5	134.5	186	1,516	27
Debubawi K.B.		189.6	…	…	…	…	…	85	865	6
	Total	2,800.5	500.1	2,697.6	187.0	517.9	1,253.2	2,026	7,062	1,161

Source: Ministry of Agriculture.

^1/Names of provinces are different between 1996 and 1997 onward due to the restructuring of local administrative zones in April 1996.

^2/Based on 3 percent annual population growth.

^3/Includes barley, wheat, peas, sesame, and maize.

^4/Includes Asmara.

^5/Population figure in 1998 does not include returnees.

Table 4.

Eritrea: Food Grain Position, 1994/95-98/99 ^1/

(In metric tons)

Source: Ministry of Agriculture.

^1/Agricultural year, September to August.

^2/Food balance for 1997.

Table 4.

Eritrea: Food Grain Position, 1994/95-98/99 ^1/

(In metric tons)

		1994/95	1995/96	1996/97	1997/98 ^2/	1998/99
Opening balance		65,021	0	14,997	50,000	40,000
Gross domestic production		265,000	149,000	132,000	100,289	468,000
	Less post-harvest losses	-25,000	-7,000	-11,000	-10,029	-37,440
	Less seed, feed, and nonfood uses	-15,000	-15,000	-15,000	-12,559	-46,800
Net domestic production		225,000	127,000	106,000	77,701	383,760
Domestic grain balance		290,021	127,000	120,997	127,701	423,760
Food imports		54,662	291,970	309,290	140,000	198,270
	Commercial	54,662	100,000	120,000	140,000	198,270
	Food aid	0	191,970	189,290	0	0
Total grain balance		344,683	418,970	430,287	267,701	622,030
Consumption		392,662	403,973	415,285	591,784	649,980
Memorandum item:
	Grain surplus/deficit	-47,979	14,997	15,002	-324,084	-27,950

Source: Ministry of Agriculture.

^1/Agricultural year, September to August.

^2/Food balance for 1997.

Table 4.

Eritrea: Food Grain Position, 1994/95-98/99 ^1/

(In metric tons)

		1994/95	1995/96	1996/97	1997/98 ^2/	1998/99
Opening balance		65,021	0	14,997	50,000	40,000
Gross domestic production		265,000	149,000	132,000	100,289	468,000
	Less post-harvest losses	-25,000	-7,000	-11,000	-10,029	-37,440
	Less seed, feed, and nonfood uses	-15,000	-15,000	-15,000	-12,559	-46,800
Net domestic production		225,000	127,000	106,000	77,701	383,760
Domestic grain balance		290,021	127,000	120,997	127,701	423,760
Food imports		54,662	291,970	309,290	140,000	198,270
	Commercial	54,662	100,000	120,000	140,000	198,270
	Food aid	0	191,970	189,290	0	0
Total grain balance		344,683	418,970	430,287	267,701	622,030
Consumption		392,662	403,973	415,285	591,784	649,980
Memorandum item:
	Grain surplus/deficit	-47,979	14,997	15,002	-324,084	-27,950

Source: Ministry of Agriculture.

^1/Agricultural year, September to August.

^2/Food balance for 1997.

Table 5.

Eritrea: Annual Catch and Sales of Fish, 1996-99 ^1/

Source: Ministry of Marine Resources.

^1/Industrial or commercial fishing is almost exclusively for export.

^2/In 1998, industrial fishing was carried out by the Eridal Jve, which stopped its operation after six months of the fishing period. The sales revenue from Eridal Jve has not yet been settled.

Table 5.

Eritrea: Annual Catch and Sales of Fish, 1996-99 ^1/

		1996			1997			1998			1999 (Est.)
		Industrial	Artisanal	Total	Industrial	Artisanal	Total	Industrial	Artisanal	Total	Industrial	Artisanal	Total
							(In tons)
Massawa		2,454	560	3,014	37	154	191	350	1,370	1,720	3,845	712	4,557
Assab		0	258	258	0	34	34	0	201	201	11	229	240
	Total	2,454	818	3,272	37	188	225	350	1,571	1,921	3,856	941	4,797
						(In millions of nakfa)
Massawa		14.7	3.4	18.1	0.2	0.9	1.1	...^2/	1.2	…	3.8	0.2	4.0
Assab		0.0	1.6	1.6	0.0	0.2	0.2	0.0	1.0	1.0	0.6	1.1	1.7
	Total	14.7	5.0	19.7	0.2	1.1	1.3	0.0	2.2	1.0	4.4	1.3	5.7

Source: Ministry of Marine Resources.

^1/Industrial or commercial fishing is almost exclusively for export.

^2/In 1998, industrial fishing was carried out by the Eridal Jve, which stopped its operation after six months of the fishing period. The sales revenue from Eridal Jve has not yet been settled.

Table 5.

Eritrea: Annual Catch and Sales of Fish, 1996-99 ^1/

		1996			1997			1998			1999 (Est.)
		Industrial	Artisanal	Total	Industrial	Artisanal	Total	Industrial	Artisanal	Total	Industrial	Artisanal	Total
							(In tons)
Massawa		2,454	560	3,014	37	154	191	350	1,370	1,720	3,845	712	4,557
Assab		0	258	258	0	34	34	0	201	201	11	229	240
	Total	2,454	818	3,272	37	188	225	350	1,571	1,921	3,856	941	4,797
						(In millions of nakfa)
Massawa		14.7	3.4	18.1	0.2	0.9	1.1	...^2/	1.2	…	3.8	0.2	4.0
Assab		0.0	1.6	1.6	0.0	0.2	0.2	0.0	1.0	1.0	0.6	1.1	1.7
	Total	14.7	5.0	19.7	0.2	1.1	1.3	0.0	2.2	1.0	4.4	1.3	5.7

Source: Ministry of Marine Resources.

^1/Industrial or commercial fishing is almost exclusively for export.

^2/In 1998, industrial fishing was carried out by the Eridal Jve, which stopped its operation after six months of the fishing period. The sales revenue from Eridal Jve has not yet been settled.

Table 6.

Eritrea: Gross Value of Public Enterprise Production, 1995-99

Source: Ministry of Trade and Industry.

Table 6.

Eritrea: Gross Value of Public Enterprise Production, 1995-99

Type of Industry		Number of Enterprises			Number of Employees			Production
		Dec. 1997	Dec. 1998	Sep. 1999	Dec. 1997	Dec. 1998	Sep. 1999	1995	1996	1997	1998	1999
		Dec. 1997	Dec. 1998	Sep. 1999	Dec. 1997	Dec. 1998	Sep. 1999	1995	1996	1997	1998	Sep.
									(In millions of nakfa)
Food industries		6	6	4	1,296	1,586	1,391	122.0	145.5	203.7	234.7	170.2
Beverage industries		2	2	1	587	736	506	171.0	199.2	159.6	161.3	123.7
Tobacco and matches		2	1	0	236	103	0	13.4	22.1	16.6	1.7	0.0
Textile industries		5	3	3	3,706	2,503	2,313	54.3	68.2	62.8	28.8	20.3
Leather and shoes		4	4	4	951	917	880	57.9	71.7	69.4	49.4	27.9
Nonmetallic industries		4	4	4	414	369	327	31.3	23.0	28.5	19.3	25.3
	Of which: Eritrea Cement	1	1	1	184	169	163	15.5	20.1	25.6	17.1	23.6
Paper and printing		3	2	2	326	242	297	19.1	20.2	11.3	14.8	11.3
Chemical industries		4	3	2	616	408	275	101.9	98.1	59.7	59.8	24.1
	Of which: Eritrea Saltworks	2	2	2	537	349	275	75.8	72.3	51.1	54.2	24.1
Metal industries		9	4	2	693	379	243	47.0	66.2	44.3	11.5	5.4
	Total	39	29	22	8,825	7,243	6,232	617.9	714.2	655.9	581.3	408.2

Source: Ministry of Trade and Industry.

Table 6.

Eritrea: Gross Value of Public Enterprise Production, 1995-99

Type of Industry		Number of Enterprises			Number of Employees			Production
		Dec. 1997	Dec. 1998	Sep. 1999	Dec. 1997	Dec. 1998	Sep. 1999	1995	1996	1997	1998	1999
		Dec. 1997	Dec. 1998	Sep. 1999	Dec. 1997	Dec. 1998	Sep. 1999	1995	1996	1997	1998	Sep.
									(In millions of nakfa)
Food industries		6	6	4	1,296	1,586	1,391	122.0	145.5	203.7	234.7	170.2
Beverage industries		2	2	1	587	736	506	171.0	199.2	159.6	161.3	123.7
Tobacco and matches		2	1	0	236	103	0	13.4	22.1	16.6	1.7	0.0
Textile industries		5	3	3	3,706	2,503	2,313	54.3	68.2	62.8	28.8	20.3
Leather and shoes		4	4	4	951	917	880	57.9	71.7	69.4	49.4	27.9
Nonmetallic industries		4	4	4	414	369	327	31.3	23.0	28.5	19.3	25.3
	Of which: Eritrea Cement	1	1	1	184	169	163	15.5	20.1	25.6	17.1	23.6
Paper and printing		3	2	2	326	242	297	19.1	20.2	11.3	14.8	11.3
Chemical industries		4	3	2	616	408	275	101.9	98.1	59.7	59.8	24.1
	Of which: Eritrea Saltworks	2	2	2	537	349	275	75.8	72.3	51.1	54.2	24.1
Metal industries		9	4	2	693	379	243	47.0	66.2	44.3	11.5	5.4
	Total	39	29	22	8,825	7,243	6,232	617.9	714.2	655.9	581.3	408.2

Source: Ministry of Trade and Industry.

Table 7.

Eritrea: Investment Projects by Sector, 1995-99

(In thousands of nakfa, ^1/ unless otherwise indicated)

Source: Eritrean Investment Center.

^1/Prior to December 1997, in millions of birr.

Table 7.

Eritrea: Investment Projects by Sector, 1995-99

(In thousands of nakfa, ^1/ unless otherwise indicated)

		1995			1996			1997			1998			1999 (Proj.)
		Local	Foreign	Total	Local	Foreign	Total	Local	Foreign	Total	Local	Foreign	Total	Local	Foreign	Total
Agriculture		32,424	0	32,424	…	…	67,709	7,235	…	7,235	22,651	3,360	26,011	31,742	21,249	52,991
	Number of projects	…	…	20	…	…	15	3	…	3	…	…	17	…	…	38
Fishing		66,610	5,400	72,010	…	…	21,149	107	…	107	17817	1180	18,997	…	…	…
	Number of projects	…	…	13	…	…	3	1	…	1	…	…	4	…	…	…
Mining		0	0	0	…	…	40,853	…	4,511	4,511	17603	1,220	18,823	…	…	…
	Number of projects	…	…	…	…	…	9	…	1	1	…	…	4	…	…	…
Quarrying		0	0	0	6,081	16,352	22,433	18,722	…	18,722	…	…	…	…	…	…
	Number of projects	0	0	0	3	1	4	2	…	2	…	…	…	…	…	…
Manufacturing		214,375	152,161	366,536	326,944	41,556	368,500	287,491	100,397	387,888	183,666	33,630	217,296	148,536	89,011	237,547
	Number of projects	…	…	68	59	17	76	53	12	65	…	…	68	…	…	54
Construction		46,625	0	46,625	…	…	77,901	8,279	262,515	270,794	…	…	…	…	22,250	22,250
	Number of projects	…	…	9	1	5	6	2	4	6	…	…	…	…	…	2
Export/import trade		6,619	0	6,619	…	…	…	…	…	…	…	…	…	…	…	…
	Number of projects	…	…	7	…	…	…	…	…	…	…	…	…	…	…	…
Hotels and restaurants		80,903	76,847	157,750	…	…	159,510	28,842	68,004	96,846	215,506	60,446	275,952	34,057	…	34,057
	Number of projects	…	…	23	…	…	38	13	2	15	…	…	43	…	…	6
Others		780	0	780	…	…	92,845	41,400	2,241	43,641	25,925	440	26,365	15,368	…	15,368
	Number of projects	…	…	4	…	…	25	10

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Abstract

APPENDIX I Eritrea: Sumary of the Tax System as of December 1999

APPENDIX II Eritrea: Exchange and Trade System

STATISTICAL APPENDIX