Eritrea’s Economy and Its Emerging Digital Landscape

Geographic Setting and Influence on Economic Activity

Eritrea is situated in the Horn of Africa, with a long coastline along the Red Sea facing the Arabian Peninsula. Its land borders with Sudan to the west, Ethiopia to the south, and Djibouti to the southeast give it a strategic position. This location offers both opportunities and challenges for economic activity. Proximity to the Red Sea shipping lanes could facilitate maritime trade and port services; indeed, Eritrea’s ports of Massawa and Assab have deep-water potential for regional commerce. However, decades of regional conflict and political isolation have limited the country’s ability to capitalise on its coastal advantage. For example, landlocked Ethiopia once relied on Eritrean ports for international trade, but a border war (1998–2000) froze that cooperation for nearly twenty years, depriving Eritrea of transit trade revenue. Only after a peace agreement in 2018 did cross-border commerce and port usage start to resume, though subsequent instability in the region tempered those gains.

Geography also defines Eritrea’s climate and resources, which in turn shape its economy. The nation spans 117,600 km² of varied terrain, from the highland plateau around the capital Asmara to arid lowlands and coastal plains. The central highlands, at elevations above 2,000 metres, enjoy cooler temperatures and seasonal rainfall, supporting subsistence farming of crops like sorghum, teff, maize, and barley. In contrast, the western and eastern lowlands (including the scorching Danakil Depression) are hot and dry, limiting agriculture and making pastoralism common. These climatic differences mean economic activity is often localised: the more temperate highlands are the traditional agricultural heartland, while the Red Sea coast offers fishing grounds and salt pans. Recurrent droughts and variable rainfall have a heavy influence on output – in dry years, harvests fail and the wider economy contracts, given the reliance on rain-fed farming.

Eritrea’s geology endows it with valuable minerals, an aspect of geography that increasingly influences the economy. The country lies on the Arabian-Nubian Shield, which is rich in gold and base metals. Mineral deposits (gold, copper, zinc, potash and others) are found in the western lowlands and along the Rift Valley zone. The remote location of some deposits and lack of infrastructure have historically impeded exploitation. In recent years, however, foreign mining firms have undertaken projects in these areas, building roads and power for their operations. The presence of minerals in otherwise sparsely populated regions has begun to draw investment into those locales, subtly shifting economic activity towards mining. Nonetheless, geography also imposes logistic hurdles: inadequate transport links and limited electricity (only about 36% of rural areas have power) constrain the full development of both mining and industry outside the capital.

Finally, Eritrea’s position and topography have influenced its regional relationships, which in turn affect trade and investment. Its Red Sea coastline puts Eritrea near the Bab-el-Mandeb Strait – a globally important chokepoint for oil and commerce – which has attracted interest from foreign powers. For instance, countries like the UAE and China have shown strategic interest in Eritrea’s ports for trade and naval access. Meanwhile, the rugged border with Ethiopia contributed to a long stalemate that isolated Eritrea economically. Geography therefore acts as a double-edged sword: offering strategic ports and resource wealth, yet requiring sound diplomacy and infrastructure investment to translate these into sustained economic gains. In sum, Eritrea’s location and natural environment set the stage for its economic possibilities, but human factors (politics, conflict, and policy choices) have so far muted the positive geographic influence on prosperity.

Overview of Eritrea’s General Economy

Economic Structure and Key Sectors

Eritrea’s economy is small and remains one of the least developed in the world. In 2023, the country’s nominal GDP was around $2.9 billion, which translates to a GDP per capita of roughly $700 – placing Eritrea among the lowest-income nations. Economic output is distributed unevenly across sectors. Agriculture, including subsistence farming and livestock herding, engages the vast majority of the population (estimates suggest over 60% of Eritreans work in agriculture), yet it produces only about 17–20% of GDP. The agricultural sector consists mainly of smallholder farming, constrained by low rainfall and rudimentary technology. Periodic droughts have made Eritrea food-insecure, necessitating cereal imports in dry years. The government has invested in dams and irrigation in some areas to improve farm yields, but overall productivity remains low. Key agricultural products include sorghum, millet, barley, wheat, legumes, and vegetables in cooler highlands, as well as livestock (goats, camels, cattle) in drier regions. Fisheries along the Red Sea coast are an underdeveloped segment – despite a long coastline with marine resources, fishing contributes minimally to GDP due to lack of investment and processing facilities.

Industry and mining constitute a growing share of the economy, now accounting for roughly 30–35% of GDP. This category is dominated by mining activities. Since the 2010s, Eritrea has begun to exploit its mineral deposits in partnership with foreign companies, providing a vital source of export earnings. Gold has been a leading commodity – the Bisha mine (a large VMS deposit containing gold, copper and zinc) became operational in the last decade, significantly boosting output. Other mining projects include the Koka gold mine and ongoing development of potash extraction in the Danakil Depression (Colluli potash project). Mining has drawn substantial foreign investment from Canada, China, Australia and other countries, making it a rare dynamic sector in an otherwise capital-starved economy. Aside from mining, manufacturing and construction are relatively limited. Light manufacturing (about 5–10% of GDP) is confined to basic agro-processing, textiles and leather goods, beverages, and cement production for the domestic market. There are small factories in Asmara and Massawa, some dating from the Italian colonial period (e.g. food canneries, a decades-old brewery, and textile mills). The lack of energy and technology hampers expansion of manufacturing; additionally, UN sanctions (2009–2018) and Eritrea’s self-imposed isolation meant little access to machinery imports or foreign know-how during those years. Construction activity has seen ups and downs – a brief boom in the early 2010s as mines and some public infrastructure were built, a slowdown during mid-2010s, and modest pickup again with new mining investments and the 2018 peace opening. Overall, industry remains narrow, with mining as the clear leading subsector driving industrial growth.

The services sector makes up the largest portion of GDP (around 50% or more), though a significant part of this is public administration and trade rather than a vibrant private services industry. Wholesale and retail trade (often described as “distribution services”) is a major component – roughly one-fifth of GDP – reflecting commerce in imported goods and the distribution of local produce. However, the trading sector has been stifled by limited consumer purchasing power and by state controls on major transactions. Government services (education, health, administration, defense) also contribute heavily to the service sector’s GDP share, as the state remains deeply involved in the economy. Financial services are rudimentary: Eritrea’s banking system is state-run and very small. There is one main commercial bank (the government-owned Commercial Bank of Eritrea) and a handful of non-bank financial institutions (e.g. a housing and commerce bank, and insurance companies). Credit to the private sector is extremely limited, and there is no stock exchange or capital market. In effect, much of what would be private service sector activity in other countries – finance, media, telecoms, etc. – is either absent or monopolised by the state in Eritrea. Tourism is another underdeveloped service industry: Eritrea has historical architecture (notably Asmara’s modernist buildings, a UNESCO World Heritage site) and Red Sea diving attractions, but visitor numbers are low. Before the COVID-19 pandemic, annual tourist arrivals were only on the order of 100–150 thousand, many of them Eritrean diaspora visiting family. Political constraints (like strict visa requirements and a lack of marketing) keep Eritrea off most travel itineraries, meaning tourism contributes only marginally to employment and foreign exchange.

GDP Growth, Trade, and Macroeconomic Indicators

Eritrea’s economic growth has been volatile in recent decades, oscillating between periods of rapid expansion and sharp contraction. This volatility stems from the narrow base of the economy: good rains or a new mine coming online can spike growth, whereas droughts or shocks (like conflict) cause downturns. For instance, after independence in the 1990s the country saw some growth, but the border war with Ethiopia (1998–2000) caused a severe economic decline. More recently, the commencement of gold mining around 2011 fueled a surge, but by the mid-2010s Eritrea’s GDP was shrinking again due to drought and reduced mining output as the initial mineral deposits depleted. A notable rebound occurred in 2018 when peace with Ethiopia was achieved – real GDP growth reportedly reached double digits (~12%) that year as trade and investment briefly improved. However, the economy slowed in subsequent years, partly due to the global pandemic and Eritrea’s involvement in the 2020–2022 conflict in Tigray (northern Ethiopia) which diverted resources. Currently, the economy is growing modestly: recent estimates put real GDP growth at about 2.5–3% annually (for 2022–2024). This tepid growth is barely above population growth, meaning income per capita is rising only very slowly.

In absolute terms, Eritrea’s GDP remains very low. As a low-income country, its per capita output (around $600–$700 nominal per year) indicates widespread poverty. The employment landscape is dominated by low-productivity jobs. Agriculture employs the majority, mostly in subsistence conditions. Industry and modern services employ only a minority – for example, the entire formal wage employment in manufacturing and mining is small relative to the labour force. Unemployment rates are difficult to measure due to the unusual labour policies, but official figures have hovered around 5–7%. This somewhat low official unemployment is misleading, as it does not account for the huge number of working-age Eritreans conscripted into national service or the armed forces. In reality, many youths are not in freely chosen employment: the government’s program of indefinite national service (in military or civil roles) has absorbed tens of thousands, effectively reducing open unemployment at the cost of suppressing wages and productivity. This system has led to an exodus of labor – a significant portion of Eritrea’s working-age population has emigrated over the past decades to seek refuge and better opportunities. The diaspora (hundreds of thousands of Eritreans abroad) plays a crucial economic role through remittances. While hard data are scant, informal remittance inflows are believed to be substantial, supporting many households and providing foreign currency to the economy. The government even mandates a 2% tax on diaspora incomes as a revenue source. These diaspora contributions, though not fully captured in official GDP, are a lifeline for the local economy and bolster consumption for many families.

Trade is a vital but constrained component of Eritrea’s economy. The country depends heavily on imports for a range of essential goods – food staples (like wheat and cooking oil), fuel and petroleum products, machinery, vehicles, pharmaceuticals, and consumer goods are largely imported, as domestic manufacturing is minimal. Exports are narrow-based, with minerals dominating merchandise exports. Gold and copper from the mining sector account for the bulk of export earnings (in some years over half of exports by value). Other minor exports include agricultural products (when harvests permit, items such as livestock, leather, and gum arabic are exported to neighbours), fish and salt from the Red Sea, and some textiles to regional markets. Overall trade volume is low due to Eritrea’s small production capacity. In recent data, total trade (exports + imports) is equivalent to roughly 50–70% of GDP – a relatively high ratio that reflects the weight of imports. However, Eritrea often runs a trade deficit, as export values (even with mining) usually fall short of import needs. One mitigating factor has been the current account surplus observed in some recent years, achieved not through diversified exports but because the import bill was compressed (owing to import rationing and limited capital goods inflow) and mining exports plus remittances provided hard currency. For example, as mining output rose, the current account turned surplus (over 10% of GDP in 2023) despite stagnant other exports.

Eritrea’s main trading partners include a mix of regional and global players. Historically, Sudan and the Middle East have been important for informal trade and supplies of fuel. In the 2010s, China became a major partner – Chinese companies invest in mining and infrastructure, and China is a leading source of imports (machinery, manufactured goods). Other partners on the import side are the United Arab Emirates and other Gulf states (which supply petroleum and consumer goods) and occasionally EU countries (Italy traditionally, for machinery or specialty goods). On the export side, the destinations are usually the global markets for minerals (for instance, gold bullion may go to Switzerland or the UAE for refining, zinc and copper concentrate to smelters in Europe or Asia). Due to the prior state of war, formal trade with Ethiopia was essentially nil from 1998 to 2018. The 2018 peace unlocked some bilateral trade – Ethiopian airlines resumed flights to Asmara, and commerce in goods like cement, foodstuffs and electronics picked up between the two nations. Eritrea also began discussions to use its ports for Ethiopian transit once again. However, the conflict in Tigray that erupted in late 2020 led Eritrea to close the border and suspend the fledgling trade ties. Thus, regional trade remains volatile and heavily dependent on political conditions. Eritrea is notably one of the only African countries that has not fully participated in regional trade blocs or the new African Continental Free Trade Area – it has been cautious about such agreements, citing self-reliance and security concerns. As of 2025, Eritrea is not yet a member of the World Trade Organization and has signed but not ratified the AfCFTA, reflecting its ambivalent approach to integration.

Macroeconomic management in Eritrea is characterised by state control and an emphasis on self-sufficiency. The country maintains a fixed exchange rate of 15 Nakfa to 1 US dollar, a peg that has been unchanged for many years. In practice, this has led to parallel market rates much weaker than the official rate, given hard currency shortages. To enforce the peg and control inflation, authorities have used strict foreign exchange regulations and rationing – for example, businesses and individuals have limited access to foreign currency, and the Nakfa is not freely convertible abroad. These controls, while containing some price pressures, have also stifled private enterprise and deterred foreign investment outside the mining sector. Inflation in Eritrea has fluctuated; in the early 2010s, bouts of inflation occurred (exacerbated by currency financing of deficits and import scarcities), but in recent years inflation has been moderate, estimated around 5–7% annually. Part of the moderation is due to the slow economy and stable official prices for staples (some basic goods have government-set prices). The government operates a highly centralised fiscal system as well. Public finances have historically been under strain due to high military spending and limited tax revenue. The state’s heavy investments in infrastructure and state industries, combined with the war and sanctions, led to large fiscal deficits in the 2000s. By the latest figures, the budget deficit has narrowed significantly (near balance in 2023) as the government imposed austerity and benefited from some mining-related revenues. Still, public debt is extremely high – over 150% of GDP – much of it domestic debt owed to the central bank or arrears on external obligations. Eritrea’s external debt payments have been in arrears to institutions like the World Bank, restricting new borrowing. The fiscal situation leaves little room for developmental outlays beyond the basics.

In summary, Eritrea’s general economy is a mix of subsistence livelihoods, a few enclaves of modern activity (mining notably), and a dominant state sector managing scarce resources. Progress has been hampered by the interplay of geography (harsh climate, isolation), history (conflict and sanctions), and policy (a command-style approach under an authoritarian government). While recent peace efforts and mineral discoveries offer some hope for improvement, the economy remains constrained and relatively fragile. Key indicators like GDP per capita, export diversification, and industrial output show that Eritrea has substantial ground to cover to achieve broad-based development.

The Current State of Internet Access and Telecommunications

Telecommunications Infrastructure and Accessibility

Eritrea’s telecommunications infrastructure is one of the least developed in the world, reflecting both limited investment and deliberate government controls. All telephone and internet services are run by a state-owned monopoly, the Eritrean Telecommunication Services Corporation (commonly known as EriTel). EriTel is the sole operator of landline telephony, mobile telephony, and the national internet gateway. There are a few private or semi-private companies with ISP licenses (such as Ewan and others), but they must route through EriTel’s infrastructure, effectively making EriTel the single bottleneck for connectivity. This monopolistic setup, combined with Eritrea’s economic isolation, has resulted in very low tele-density and sparse internet availability.

The basic telephone infrastructure is antiquated. Fixed-line telephony is largely confined to the capital, Asmara, and a few major towns. Many of the copper lines in the ground date back to the Italian colonial era or were installed mid-20th century. As of the last published figures, there were on the order of only 50–60 thousand fixed telephone lines in use nationwide – an extremely low number. Most households in Eritrea have never had a landline phone. In response to this, Eritrea focused on mobile telephony in the 2000s. EriTel launched a GSM mobile network in 2004 and gradually expanded coverage. By 2024, the company claims to cover about 85% of the country’s population with its mobile signal (primarily 2G for voice/SMS, with limited 3G data coverage in urban areas). However, coverage does not equal usage: owing to the cost of handsets and subscriptions, as well as coverage gaps in remote villages, only a fraction of Eritreans actually subscribe to mobile services. As of early 2023, there were approximately 871,000 mobile cellular connections active in Eritrea. This number is equivalent to about 23.5% of the population, meaning roughly one in four Eritreans had a mobile SIM. But even that overstates the reach: many individuals have multiple SIM cards or inactive accounts, and EriTel reports it serves about 380,000 unique customers. In essence, barely 10% of citizens have regular phone access. Mobile penetration at this level is the lowest in Africa. By comparison, neighbouring countries have mobile subscription rates well above 50–80%.

Internet connectivity builds on this modest telecom base and is similarly underdeveloped. Until around 2010, internet access in Eritrea was almost exclusively via dial-up connections on phone lines or very limited VSAT (satellite) links for privileged institutions. Broadband infrastructure was virtually non-existent. Over the past decade, some improvements have been made: EriTel has installed a fibre-optic backbone in central Asmara and between a few cities (Asmara is now linked by fibre to the port city of Massawa, for example). Microwave radio links connect other towns to the core network. EriTel has also rolled out a basic 3G mobile data service, first in Asmara and then to other major towns. This 3G network provides slow internet (often only a few hundred kilobits per second) but marked the first time many Eritreans could potentially access the web beyond dial-up. By the early 2020s, EriTel started offering ADSL broadband in parts of Asmara – a fixed broadband service over telephone lines – and announced efforts to extend internet service to smaller towns (news reports in 2021 noted new internet access introduced in towns like Keren, Dekemhare, and others via microwave backhaul). Despite these efforts, the infrastructure remains far behind global standards. There is no 4G/LTE service in Eritrea, and plans for 5G do not exist at this stage. International connectivity is another limiting factor: unlike most coastal countries, Eritrea is not directly connected to any submarine fiber optic cable. Major regional undersea cables run just off its Red Sea coast, but Eritrea has not built a landing station. Instead, international internet traffic is routed via satellite and, more recently, through neighbouring countries’ networks. After the peace with Ethiopia, steps were taken to establish a fibre optic link through Ethiopia and Sudan to connect Eritrea to global networks terrestrially, but progress has been slow and interrupted by renewed conflict. The lack of high-capacity international links means bandwidth available for the entire country is extremely limited and expensive.

Electricity and technological infrastructure further constrain telecom development. Power supply in Eritrea is unreliable and not widespread – only around 50% of the population has access to electricity (and in rural areas, electrification is barely one-third). EriTel has had to install solar panels and generators to power remote telecom towers and exchanges because the electrical grid is weak. Moreover, the overall ICT ecosystem (data centres, local networks, etc.) is minimal. Most government and business offices use outdated equipment; only a handful of institutions (like universities or ministries) have dedicated internet lines. Internet cafés existed in Asmara – perhaps a half-dozen at the peak – serving those without home access, but their numbers have fluctuated based on government restrictions and profitability. In smaller towns, an “internet café” might simply be a few computers at a post office or an education centre with a slow shared connection.

Internet Usage and Digital Reach

Given the infrastructure challenges, it is not surprising that Eritrea has one of the lowest internet usage rates in the world. As of 2023, it is estimated that only about 20% of Eritrea’s population has used the internet in some form. In other words, roughly four out of five Eritreans remain entirely offline. This internet penetration rate (~20%), while a notable increase from near zero a decade earlier, is still extremely low by global standards. For context, the African continental average for internet use is well over 40%, and many countries have rates above 60–70%. Eritrea stands alongside a few isolated states like North Korea in terms of minimal connectivity for the general public.

It is important to clarify what “internet user” entails in the Eritrean context. The significant jump from virtually 0% two decades ago to around 20% today largely reflects the spread of mobile phones capable of some internet access (even basic 2G/3G). Most Eritrean internet users access it via mobile devices on EriTel’s network, as there are very few fixed broadband subscribers. Indeed, fewer than 2% of households are thought to have a home internet connection. Home connections have historically been discouraged – for many years, the government did not allow private individuals to subscribe to internet services at home easily, limiting access to workplaces, schools, or internet cafés under supervision. Although this policy has loosened slightly (with ADSL now theoretically available for purchase), the combination of high cost and bureaucratic obstacles means home internet is still rare and usually limited to elites or professionals.

The typical internet experience for an Eritrean user is characterized by low bandwidth and narrow content options. With slow connections, bandwidth-heavy activities like video streaming are often impractical. In fact, the authorities at times have blocked or throttled certain websites (for example, YouTube has reportedly been blocked by the national providers, ostensibly to conserve bandwidth and perhaps to control information). The majority of users engage in basic activities such as emailing, instant messaging, and reading text news (often on officially approved sites). A common use-case is communication with the diaspora: Eritreans with internet access frequently use it to send emails or messages to relatives abroad or to receive news and remittance instructions.

The number of people actively using social media in Eritrea is astonishingly low. Surveys at the start of 2023 found only on the order of 10 thousand social media users in the entire country – that is a mere 0.3% of the population. This figure includes platforms like Facebook, Twitter, and Instagram. The negligible uptake of social media is partly due to technical factors (smartphones and data plans are not widespread, and social apps are data-heavy), but it also reflects conscious restrictions. The Eritrean government imposes tight censorship on media, and this extends online. Independent journalism is banned, and the state media dominate information channels. Social networking sites, which in other countries have become forums for news and discourse, are largely absent from daily life in Eritrea. Many citizens are either unaware of these platforms or avoid them for fear of surveillance. It is widely believed that the government monitors internet usage and that engaging with unapproved content could invite scrutiny. As a result, those Eritreans who do go online tend to stick to a small cluster of permissible or discreet activities.

One can gauge the limited digital participation by the fact that 78% of Eritreans (roughly 2.9 million people) have never used the internet as of 2023. The digital divide in Eritrea is pronounced across urban–rural and generational lines. The capital city, Asmara, with around half a million inhabitants, has the highest concentration of users – here, university students, professionals, and government staff form the core of the internet-connected public. Even in Asmara, connectivity might mean a shared workplace computer or a slow phone line; truly ubiquitous mobile internet usage like seen in Nairobi or Addis Ababa is not the reality in Asmara. In secondary towns, perhaps a small cyber café or a few dozen individuals have internet access. In vast rural areas, there is effectively no internet at all – many villages lack both the electricity and the telecom network needed. This means the internet in Eritrea is mainly an urban phenomenon, and even within cities it is restricted to certain circles.

The government’s policy and security stance also affect the quality of internet access. To maintain control, Eritrea has kept the internet largely isolated and text-based. There is little local content generation – few Eritrean businesses or citizens create websites or blogs, since private media is outlawed. Those government agencies that do have websites (like the Ministry of Information’s site) host mostly propaganda or public service information. International websites can be accessed if not explicitly blocked, but due to the slow speeds, many people stick to email and a few news sites. The concept of e-commerce, e-government services, or online education is still nascent or non-existent in practical terms.

Despite this grim picture, there have been slight improvements lately. The increase of internet penetration from perhaps 1% in 2010 to ~20% in 2023 indicates that more Eritreans at least have intermittent access to the digital world now than before. The rollout of 3G mobile data, albeit slow and patchy, allows someone with a modern phone in Asmara to check emails, do a Google search, or use WhatsApp if they can afford data packages. There is evidence that WhatsApp and similar messaging apps are popular among the connected minority, as they provide a vital link to family abroad and a relatively secure channel (end-to-end encryption) for private communication. Even if only a small elite can partake, the hunger for connectivity does exist – young Eritreans are aware of global internet culture through diaspora connections and many aspire to greater digital access. In diaspora communities, there are efforts to bridge the gap, such as setting up mirror sites or low-bandwidth versions of news portals that might be easier for Eritreans inside the country to load.

In summary, internet access in Eritrea is scarce, slow, and tightly controlled. The country’s telecom infrastructure lags far behind, offering only the basics of connectivity to a limited audience. Those who are online make relatively constrained use of the internet, given the political and technical limitations. Eritrea stands as an outlier in the digital age – its population has yet to experience the full benefits of the internet and remains largely disconnected from the global information society.

Popular Online Platforms and Digital Services in Use

The notion of “popular” online platforms in Eritrea must be contextualised by the exceptionally low usage of the internet in the country. Unlike most nations where one can list widely used social networks, e-commerce sites, or streaming services, in Eritrea the vast majority of people do not regularly engage with such platforms. Nonetheless, among the subset of Eritreans who are online, there are certain digital services and sites that have a noticeable presence.

Social Media and Communication Tools

Social media penetration is minimal. The platform with perhaps the largest footprint is Facebook, but even that is used by only a tiny fraction of Eritreans. Facebook’s advertising audience data suggests on the order of a few thousand users at most inside Eritrea. Typically, these users are young urban residents, expatriates living in Eritrea (such as diplomats or NGO workers), or government-affiliated individuals. For most citizens, Facebook and similar platforms are not part of daily life – internet packages are expensive and slow, and there is an implicit discouragement of social media use by authorities. As a result, one cannot say that Eritrea has a vibrant social media scene; rather, it has a skeletal presence. Those Eritreans who do participate often do so quietly, sometimes under pseudonyms, and their friend networks are heavily skewed towards contacts abroad.

Other global social networks like Twitter, Instagram, or LinkedIn have an even smaller footprint. A niche group of Eritreans on Twitter can be found, often members of the diaspora or a few inside who use it for following international news. Instagram use would be limited by bandwidth (sharing images or videos is challenging on Eritrea’s network) – only a very few individuals or perhaps tourism promoters post Eritrea-related content on Instagram, and they often rely on proxy connections. YouTube, as mentioned, is reportedly blocked or too slow to be practical, so it’s not commonly accessed from within Eritrea.

In terms of communication apps, WhatsApp and Telegram are important to those who have the capability. WhatsApp in particular has become a lifeline for communication with family overseas. Eritrean diasporas often maintain contact with relatives at home using WhatsApp’s text or voice features. The app usage relies on the mobile data or occasional Wi-Fi (e.g. in an internet café or office). Because WhatsApp uses relatively low bandwidth for texts and even voice notes, Eritreans find it one of the more feasible services over a weak network. It is also perceived as safer from eavesdropping, although one assumes that the government monitors internet traffic to the extent it technically can. Telegram has been used by some diaspora activists to disseminate information back home, and tech-savvy youth might join Telegram channels if they can. However, these practices are not widespread beyond a small circle.

It should be noted that for news and information, many Eritreans rely on traditional media (state radio and television) or word of mouth, rather than online sources. The government tightly controls domestic news websites – in fact, there are no independent news websites operating from inside Eritrea. A few official websites carry news: the Ministry of Information runs Shabait.com, which publishes state news and press releases in multiple languages, and is likely one of the most accessed sites given it’s government-approved. Some ministries and state agencies maintain rudimentary web pages (often under the .gov.er or .com.er domain, though these are sometimes outdated). These official online outlets serve as extensions of government propaganda and information dissemination. For anything beyond that, Eritreans with internet rely on foreign sources: for example, BBC News (especially the BBC Tigrinya service), VOA (Voice of America) in Tigrinya or Arabic, and diaspora-run news portals like Asmarino or TesfaNews. However, many of those diaspora sites are blocked by Eritrean ISPs for their critical content. It is known that sites deemed opposition or “undesirable” (for instance, news sites run by exile groups) are often not reachable from inside Eritrea. Some determined users utilize VPNs or proxy servers to get around these blocks, but this requires technical knowledge and carries risk. In sum, the average person within Eritrea’s online minority sticks to a small set of known-safe sites and communication channels.

Local Digital Services and Platforms

Domestic digital services (such as e-commerce, online banking, or local apps) are virtually non-existent. There are no significant Eritrea-based e-commerce websites or marketplaces serving the local population. The reasons are clear: few people are online, online payment infrastructure is absent, and the market is very small in purchasing power. If an Eritrean business has an online presence, it is usually for the benefit of the diaspora or foreigners. For example, some travel agencies or tour operators in Eritrea have simple websites listing their services, aiming to attract tourists from abroad who might find them via Google. A handful of hotels in Asmara (like the international-standard ones) maintain a web page or at least a listing on global booking platforms; these are essentially digital marketing to foreigners rather than locals. Likewise, Eritrean Airlines (the national carrier) has had a website for flight information, though the functionality for online booking has been limited or only via partner systems, given the difficulties in online payments with Eritrea.

One area of slow development is banking services. As of 2025, Eritrea does not have widespread mobile banking or mobile money platforms, unlike many African peers. The banking sector’s conservatism and lack of technology adoption means even ATM machines are rare in Eritrea. Most transactions are cash-based in local currency. Recently, there have been indications that banks are exploring electronic services in a very limited fashion (for example, to allow diaspora to transfer funds through official channels or to facilitate government salary payments via bank accounts), but a comprehensive digital finance ecosystem is absent. There is also no usage of international services like PayPal inside Eritrea, since the country is largely cut off from global payment networks due to sanctions and its own monetary policies.

Email remains a key service for those who have internet. Many Eritreans who went to university or work in government offices have a personal email (often on Gmail, Yahoo, or similar). Email is used for formal communication, especially when dealing with external organizations. For internal communications, however, much is still done by phone or paper due to limited connectivity between offices.

One can mention the .er country domain here as well: in theory Eritrea’s country code top-level domain is “.er”, and one might expect local websites to use it. In practice, as will be detailed later, .er is barely used – thus even local web services, if any, often use .com or .org addresses. For example, the official government website uses .gov.er, but many others prefer general domains (the Ministry of Information uses shabait.com for its site).

An interesting digital conduit in Eritrea is the use of diaspora-driven services for sending goods and money. While not an online platform per se within Eritrea, there are websites and mobile apps operated from abroad that cater to the Eritrean diaspora for remittances and gift deliveries. For instance, some services allow an Eritrean abroad to purchase a voucher or goods (like a mobile recharge or a package of food) that can be redeemed by their family in Eritrea. These services effectively bridge the gap created by Eritrea’s isolation from international financial systems. They are gaining popularity among the diaspora to support relatives back home. The recipient in Eritrea might receive a code via SMS to collect cash or goods from a local shop. However, these platforms operate entirely from outside Eritrea; domestically, the recipients just experience it as a local transaction (e.g. picking up money at a bank). Still, it highlights how digital services related to Eritrea are mostly initiated abroad and trickle into the country through controlled mechanisms.

In conclusion, the spectrum of popular online platforms in Eritrea is narrow. Communication apps (like WhatsApp) and a few global social/media sites used cautiously by a few form the extent of social digital life. Official websites and email serve the needs of information dissemination and formal exchange. There is almost no native Eritrean online platform that has mass usage. The digital services marketplace that thrives in other countries – from online shopping to ride-hailing apps – is essentially absent. What little exists of a digital ecosystem is oriented toward connecting Eritreans with the outside world on a very limited basis, rather than fostering a rich internal digital culture. This underscores how much Eritrea’s digital economy lags behind, a theme that carries into its country domain usage and tech companies as well.

The .er Country Code Top-Level Domain and Its Use

Every country has its designated internet domain (country code top-level domain, ccTLD) – for Eritrea, this is “.er”. In theory, .er could be used for Eritrean websites and email addresses, providing a national online identity. In practice, however, the .er domain is extremely obscure and largely unused, reflecting Eritrea’s rudimentary internet development and administrative hurdles.

The .er domain has been effectively closed off to the public for many years. It is managed by the Eritrean Government (reports indicate EriTel was given responsibility as the registry), but there is no easily accessible mechanism for individuals or businesses to register .er domains. Unlike most countries where one can go to a registrar and purchase a domain name (like mycompany.er) by meeting certain criteria, Eritrea provides no such service openly. In fact, attempts by outsiders to register .er domains have routinely failed – even registrars and domain resellers do not offer .er, often noting that the registry is not functional or not accepting registrations.

Officially, the structure of .er domains includes second-level categories such as .com.er, .org.er, .edu.er, etc. For example, companies could theoretically register under .com.er and organisations under .org.er. A few entities have had these domain names reserved. For instance, EriTel itself has used an address in the .com.er space (historically something like tse.com.er, with TSE referring to Telecommunications Services of Eritrea). Some government ministries and the University of Asmara were allocated .gov.er or .edu.er addresses in the early 2000s. However, many of these are defunct or not actively maintained. The Ministry of Information’s website, as mentioned, is accessible at shabait.com (a .com domain, not .er), highlighting that even the government chose an international domain for reliability. The official government website for general information uses eritrea.gov.er, but this site has often been offline or only intermittently updated.

Essentially, .er is rarely seen in the wild. By available counts, the number of .er domain hosts is negligible (on the order of a few hundred hosts, many of which may be internal or not publicly reachable). The domain is so under-utilised that it never developed any value even for creative uses (such as domain hacks or commercialisation abroad). Some ccTLDs of small countries get marketed globally (for example, .io or .ai domains used by tech startups), but .er has not been marketed at all. Part of the reason is the lack of any registry infrastructure or marketing: Eritrea’s authorities have simply not prioritized or facilitated the use of their country domain.

For an Eritrean business or individual, the practical choice for having an online presence is to use a generic top-level domain like .com, .org, or perhaps another country’s domain. Many Eritrean-related sites, including diaspora community pages, opt for .com or .org because obtaining .er is virtually impossible. Similarly, NGOs or foreign embassies in Eritrea use .org or the domain of their home country rather than any Eritrean domain. There have been occasional discussions in tech forums about how one might register a .er domain, but these invariably conclude that it is “not currently possible.” Indeed, the registry for .er appears essentially closed – even “bucket shop” domain providers list .er as unavailable. This situation likely stems from administrative inertia and strict control: the government may have feared that opening the domain could lead to misuse or content they cannot regulate, hence they keep the reins tight by not allowing general registrations.

Another aspect is that internet censorship and surveillance are easier for the state when local internet activity is funnelled through a few known channels. If .er domains were widely used and hosted, it might imply more local hosting and content creation, which the regime has not encouraged. By keeping most Eritrean web content on foreign domains and servers, ironically, the government limits the need to oversee local web servers – instead, it focuses on controlling access.

In summary, Eritrea’s country code domain “.er” exists mostly on paper. Its use is restricted to a handful of official or semi-official sites, and even those often prefer global domains for practicality. The .er space is essentially dormant – a telling indicator of how undeveloped the country’s internet ecosystem is. Until Eritrea liberalises its internet policy and establishes a functioning domain registry, .er will remain an infrequently seen suffix, with Eritrean entities continuing to rely on international domains for any online presence.

Leading Internet-Based or Tech-Oriented Companies in Eritrea

Eritrea’s technology and internet sector is extremely small, and there are few companies that one could classify as “internet-based” or “tech-oriented” in the traditional sense. The nation’s tightly controlled economy and limited connectivity have stunted the emergence of startups or private tech firms. Nevertheless, a few key players and organisations dominate whatever there is of the tech landscape.

Eritrean Telecommunication Services Corporation (EriTel)

By far the most significant tech entity in Eritrea is EriTel, the state-run telecommunications corporation. EriTel was established as the successor to the postal and telecommunication authority after independence and was restructured in 2003 to handle all telecom services (fixed, mobile, and internet). As the only telecom operator in the country, EriTel is responsible for telephone networks, mobile towers, internet service provision, and the international gateway. In effect, EriTel is the backbone of Eritrea’s digital infrastructure. It has a dual role: a commercial operator serving subscribers, and a strategic arm of the government’s communications apparatus. With about 380,000 customers served (across mobile, fixed, and internet) as of mid-decade, EriTel’s scale is modest, but its monopoly status makes it one of the largest non-mining enterprises in Eritrea in terms of revenue and employees.

EriTel’s operations include maintaining telephone exchanges, microwave relay sites, and the emerging fibre-optic links in Asmara. The company also runs the only mobile phone network (GSM) and issues SIM cards. All internet access for other ISPs or large institutions is provisioned through EriTel’s gateway and bandwidth. In recent years, EriTel has partnered with foreign vendors like China’s Huawei and ZTE to upgrade infrastructure – for example, installing 3G base stations and laying fibre cables in urban areas. These partnerships have essentially made Huawei and ZTE important tech actors in Eritrea (albeit not customer-facing). Through government-to-government agreements, Chinese firms have supplied much of the telecom equipment EriTel uses.

Given its central role, EriTel can be considered the leading tech-oriented company – though it operates under government direction rather than as an independent commercial innovator. It generates income from call charges, internet subscriptions, and related services, which in turn fund whatever incremental improvements are made to the network. However, the monopoly and lack of competition also mean EriTel has had little incentive to rapidly expand or reduce prices, contributing to the stagnant telecom environment. The company often cites resource constraints and security directives as reasons for the slow rollout of services.

Other Licensed ISPs and Tech Firms

Apart from EriTel, the government in the past licensed a few small Internet Service Providers. These include entities such as Computer Technology Solutions (CTS), Ewan Technical Solutions, and Tsewav (T-Fanus). These companies were given ISP licenses around the year 2000 when Eritrea initially planned to introduce limited competition in internet services. In practice, because EriTel controls the only gateway, these ISPs had to purchase bandwidth from EriTel and then resell it or provide services to niche clients. Their customer base was very limited – often just some NGOs, embassies, or businesses requiring slightly better service or IT support. Over time, some of these firms pivoted more towards general IT services (such as setting up local area networks, providing computer hardware, maintenance, etc., for offices) rather than true internet provisioning, since the latter remained under tight oversight. For example, Ewan is known as an IT solutions provider in Asmara, offering networking and tech support to institutions; it also ran an internet café and provided dial-up accounts to a small number of users. These companies can be considered tech-oriented in that they work with computers and networks, but they are relatively small (dozens of employees at most) and have limited scope due to the overall environment.

Another notable institution is the Eritrea Institute of Technology (EIT) located near Asmara, which, while not a company, is a center for training in engineering and computer science. EIT graduates some number of engineers and IT professionals each year. Many of these graduates end up working for the government (including for EriTel or the Ministry of Education’s IT departments) or, as is often the case, they eventually emigrate. The presence of this talent pool means there is a latent potential for a tech sector, but in the absence of a free market or private capital, there are few outlets in-country. Some graduates have joined or formed small programming teams that take on outsourcing tasks or build basic software solutions for local use (such as library management systems, simple websites for local businesses, etc.). However, these activities are low-profile and not on a startup scale.

It’s worth mentioning the mining and industrial companies in Eritrea as quasi-tech entities – though not internet-based, several of the larger mines like the Bisha mine have sophisticated technological operations. They employ modern geological survey tools, satellite communications (for their remote sites), and computerised processing plants. Companies such as Nevsun (now Zijin Mining), which operated Bisha, and other foreign partners effectively brought high-tech machinery and IT infrastructure into their Eritrean operations. This has had some positive externalities, like training Eritrean technicians in modern systems. Yet, these are isolated within the mining sector and have not translated into broad tech entrepreneurship in the general economy.

One domain which could be considered part of the “digital economy” is the media and broadcasting technology field. The state media (Eri-TV and Radio Eritrea) and the government’s printing press use digital equipment. There are a few companies or departments that handle broadcast engineering and IT for media. These are all state-affiliated; for example, there is a government IT and communications unit that manages the digital archives, the broadcasting software, and internet streaming (Eri-TV does stream some content online, which requires an IT platform). However, given that media is not free, these units serve purely regime purposes and do not function as independent businesses.

No list of Eritrean tech companies would be complete without noting the absence of international tech corporations. There are no major foreign IT companies operating inside Eritrea – no Google offices, no Microsoft resellers, no telecom multinationals (aside from vendors like Huawei providing equipment). Unlike many African countries which host at least regional offices of big tech or have call centers/BPO industries, Eritrea’s environment has not allowed any such development. Similarly, there are no notable Eritrean software or app companies making a mark abroad from within Eritrea. The innovation ecosystem (incubators, tech hubs) that can be found in Nairobi, Addis Ababa, or Kigali is simply not present in Asmara under the current climate.

In summary, the leading “tech” company is the monopoly telecom EriTel, followed at a distance by a handful of small ISPs/IT firms like Ewan and CTS that survive in niche roles. Most other tech-oriented activity is within government departments (education, media, military communications) or foreign-run projects (mines). The digital corporate sector as understood elsewhere is essentially absent in Eritrea. Any growth in this area would likely require policy changes to allow private enterprise and foreign investment in telecommunications and IT, as well as a general opening of the economy.

The Digital Marketing Landscape in Eritrea

Digital marketing – the use of online platforms and tools to promote products and services – is in its infancy in Eritrea. Given the low internet penetration and lack of social media engagement in the country, traditional marketing channels remain predominant. However, it is instructive to consider how businesses and organisations in Eritrea (and those targeting Eritrean audiences) approach marketing in the digital realm, and what limitations and trends exist.

Current Practices and Strategies

For most Eritrean businesses, marketing is done through conventional means: signage, word-of-mouth, radio advertisements, and perhaps print media. The state media (Eri-TV and radio) carries some advertising, usually from government agencies or the few larger companies (for example, commercial banks advertising savings accounts, or the national airline announcing flight services). These are very much one-way broadcast promotions. The concept of interactive digital marketing – where a company would engage customers on Facebook, run email campaigns, or optimize search engine results – is largely absent domestically. The primary reason is that the target audience inside Eritrea is mostly offline. Reaching consumers effectively still means catching them on state TV or on posters in shop windows, not on Instagram or Google.

That said, some entities have begun to establish a digital presence, mainly to ensure visibility to the diaspora and international market. For example, hotels and tour operators maintain Facebook pages or simple websites. Their aim is to attract foreigners (tourists, business travelers) who might search online for accommodations or services in Eritrea. These online pages are typically maintained via overseas connections or by staff who have some internet access. The content tends to be basic (contact information, photos, and descriptions) without sophisticated digital campaigns behind them. A hotel in Asmara might list itself on TripAdvisor or booking.com and consider that its digital marketing – leveraging global platforms to be discoverable. Similarly, Eritrean restaurants or cultural troupes overseas use social media extensively, but inside Eritrea, a restaurant would not find much use in, say, an online advertising banner, since local patrons are not browsing the web.

One area where a form of digital marketing does occur is in the government’s outreach to the diaspora and international community. The Ministry of Information and other official bodies use their websites and some social media accounts (Twitter, etc.) to project Eritrea’s image and communicate policy positions. While this is more propaganda than commercial marketing, it demonstrates an understanding that the internet can be used to influence perceptions. For instance, official Twitter accounts occasionally post about Eritrea’s development projects or invite investment, essentially marketing the country to potential investors or tourists. Additionally, state media content is made available online (through the ministry’s website and YouTube channels run from abroad) to reach Eritreans in the diaspora. This could be seen as a strategy to maintain engagement with overseas Eritreans, who might in turn invest or visit. In a way, the Eritrean government treats its diaspora as a market to which it markets patriotism and the idea of visiting or sending money home.

Local private companies have not had many opportunities or means to do digital marketing, but there are a few emerging examples. The telecom company EriTel itself has started to advertise its new services on its website and Facebook page (for instance, when introducing new internet packages, EriTel posts the information online as well as in newspapers). A small number of forward-thinking businesses in Asmara – for example, a new cafe or a boutique – might create a Facebook page to connect with the relatively few Eritreans on that platform. They may gather a few hundred followers (mostly younger Eritreans and diaspora who are in the country) and post updates about products or events. The reach is limited, but this shows a nascent awareness of social media’s utility. However, given only 0.3% of the population uses social media, these efforts are more experimental than game-changing.

Limitations and Challenges

Several significant limitations curtail the scope of digital marketing in Eritrea:

• Limited Audience: With roughly 20% internet penetration and an even smaller active online community, the reachable audience within Eritrea for any online campaign is extremely small. A campaign on social media might simply fail to find a critical mass of Eritrean users. The majority of potential consumers will never see an online ad or a social media post.

• Regulatory and Censorship Environment: All online content in Eritrea exists under the gaze of state control. A business would be cautious about how it portrays itself online; overt advertising might draw unwanted attention if not aligned with permitted messaging. Moreover, websites that allow user interaction (comments, reviews) risk being censored if any political or sensitive discussion arises. This discourages interactive marketing. There are also no independent media outlets or popular local websites where one could place digital ads – the media is state-run and doesn’t host third-party ads in an online context.

• Lack of Online Payment and E-Commerce: Digital marketing is often tied to e-commerce or online services. In Eritrea, even if one were to generate interest online, converting that to a sale is not straightforward. With no online payment gateways, any transaction has to be completed in person or via cash on delivery. For example, a store might display goods on a Facebook page, but a customer still has to physically come and pay Nakfa in cash. This reduces the incentive to market widely online, as the process cannot be completed digitally.

• Skills and Knowledge Gap: Digital marketing requires certain skills – graphic design for online ads, understanding of social media algorithms, analytics, etc. Eritrea has very few professionals trained in these areas, because the industry for them is practically non-existent. Most marketing professionals in Eritrea are versed in traditional media. The few who are savvy with digital tools are often self-taught and may themselves leave for better opportunities. There are no digital marketing agencies operating domestically.

• Cost of Internet: For businesses, maintaining an online presence or running campaigns involves costs (hiring someone to manage pages, paying for internet data to upload content, possibly paying for ads on Facebook or Google). In Eritrea, internet access is costly and slow, making such activities relatively burdensome with uncertain return on investment.

• Language and Content: Eritrea’s populace speaks Tigrinya, Arabic, Tigre and other local languages primarily. There is limited local-language content online. Digital marketing would ideally be in local languages to be effective, but creating digital content in Tigrinya (for instance, a promotional video or an infographic) is not straightforward – fonts, design tools, and platforms are not as readily available for these languages. Additionally, many Eritreans are not comfortable with online reading due to lack of exposure, so a flashy online ad might not engage them as a simple radio jingle would.

Regulatory Factors

From a regulatory standpoint, any marketing (digital or not) must adhere to the rules set by the government. Advertising of certain products (like alcohol or political content) is restricted. On the internet, since almost all infrastructure is government-controlled, any digital marketing effort implicitly requires government tolerance. For example, sending bulk promotional SMS messages through EriTel would require permissions; starting a website for a company might require it to be hosted on a server that the government can monitor. These factors create a climate where businesses do not have autonomy to experiment freely with digital outreach.

Moreover, Eritrea has no specific legal framework for digital commerce or advertising. There are no consumer protection laws for online purchases, no data privacy laws, and no cyber-specific advertising standards. This legal vacuum, combined with overall authoritarian oversight, means that the environment is not conducive to innovation in marketing. Companies likely self-censor their online content to avoid any hint of controversy. Also, because the internet was long viewed by the regime as a potential channel for dissent, there is some latent distrust: a business would be careful not to use online platforms in any way that could be construed as aligning with dissident diaspora narratives or giving a platform to user comments that could turn political.

Emerging Trends and Future Outlook

Despite the challenges, the digital landscape in Eritrea is slowly changing, and with it, the prospects for digital marketing may improve, albeit gradually:

• Increasing Connectivity: Internet access, while still very low, is higher than it was a few years ago. If the government continues to expand 3G coverage and perhaps introduce 4G in the future (possibly through foreign investment in telecom), more citizens will come online. Even a rise to 30–40% penetration in the next decade would significantly enlarge the reachable online audience. Businesses are likely to follow where the audience goes. Should Eritrea reach a tipping point where enough people use, say, Facebook or a local equivalent, companies will begin to incorporate that into their marketing mix more seriously.

• Diaspora as Digital Intermediaries: Many Eritrean businesses rely on diaspora connections for investment and customers. Some smart businesses may start leveraging diaspora social networks to market indirectly to locals. For instance, an Eritrean in Europe might see an online promotion for a new café in Asmara and then inform their family back home to visit it. While indirect, this is a plausible mechanism in the Eritrean context. The diaspora’s heavy presence on digital platforms (Facebook groups, Telegram channels for Eritrean communities abroad) can serve as a proxy marketing space that ultimately influences people inside Eritrea via personal communication.

• Regional Influence: As neighbouring Ethiopia undergoes telecom liberalisation and Sudan invests in ICT, there could be spill-over effects. Cross-border mobile signals and the lure of the internet next door may pressure Eritrea to open up more. If Eritrea were to join regional initiatives or allow external telecom operators, the ensuing competition could drastically improve services and bring down prices. That, in turn, would invite global tech companies and social media companies to pay attention to Eritrea as a new market, even if small. One could foresee scenarios where, in a more open Eritrea, Facebook might include Tigrinya language support in more features, or international NGOs might run digital literacy programs. These would lay groundwork for a local digital marketing ecosystem (with more content creation, local influencers, etc., emerging).

• Government Digital Initiatives: There have been talks in policy circles of moving some government services online to improve efficiency (for example, online publication of exam results, digitising civil registries, etc.). If such e-government efforts take root, they will necessitate broader internet usage among the public (even if just to check information). This could indirectly boost digital engagement, making online channels more viable for outreach by various organisations. Additionally, the government might eventually recognise the need for modernising its image – supporting certain controlled digital marketing, like a tourism promotion website or social media campaign to attract visitors, which could break some ground.

• Youth Adaptation: Eritrea’s population is young (median age around 19). Younger Eritreans, even with limited resources, tend to be more tech-curious. Some urban youth already use Bluetooth and offline methods to share music and videos, forming a kind of “sneakernet” digital culture. As they gain even a trickle of internet access, they are likely to adopt social media and messaging quickly. We can anticipate that if a threshold of youth get online, local content will grow – possibly entertainment or community-focused – and small-scale influencers or trends might appear. That could be the start of grassroots digital marketing: a popular youth-oriented shop might, for example, promote a music event through a flyer on Telegram or an Instagram post if they know the youth segment is watching.

For now, digital marketing in Eritrea remains extremely limited and primarily externally oriented. Traditional marketing channels dominate internally. Companies and entrepreneurs operate under tight constraints, focusing on direct customer interaction rather than broad campaigns. The regulatory regime, coupled with the tiny online audience, ensures that the digital marketing landscape is nascent. In the near future, any significant shift would likely depend on improvements in internet infrastructure and a relaxation of controls, which might allow a digital ecosystem to develop. Should that happen, even modestly, businesses in Eritrea will have to learn modern marketing techniques and tools – a challenge but also an opportunity to engage with consumers in new ways after years of relative isolation.

Conclusion

Eritrea’s economy today is a mix of longstanding traditional sectors and embryonic modern ventures, all heavily shaped by the nation’s unique political and geographic circumstances. The country’s strategic Horn of Africa location and Red Sea access have yet to be fully leveraged due to a history of conflict and isolation, but they hold latent potential for trade and maritime commerce. In the domestic economy, agriculture remains the backbone of employment and survival for most Eritreans, while mining has emerged as a crucial source of growth and foreign exchange in an otherwise struggling system. The state’s pervasive role has maintained stability in some macroeconomic measures but often at the expense of private sector development and individual livelihoods. Key indicators – from GDP per capita (around $700) to internet penetration – underscore Eritrea’s status as one of the world’s least developed and most closed-off economies.

Particularly in the realm of the internet and digital economy, Eritrea stands at a very early stage of development. The digital infrastructure is rudimentary: a single telecom operator with limited reach, no widespread broadband, and an almost dormant national domain (.er). Consequently, the digital footprint in the country is tiny – only a fifth of the population has even sporadic internet access, and genuine engagement is confined to a small urban elite. The concept of a digital economy encompassing e-commerce, online entrepreneurship, or widespread digital services is not yet a reality in Eritrea. Instead, what exists is a narrow bandwidth of activity: some email and messaging use, minimal social media, and a handful of official or expatriate-run websites. Popular global platforms have minuscule user bases locally, and local platforms are virtually absent.

Nevertheless, the seeds for change are present. Each year, more Eritreans acquire mobile phones; each incremental upgrade EriTel makes extends the internet’s reach by a small margin. The youth of Eritrea, better educated than previous generations, are aware of the digital revolution outside their borders and aspire to be part of it. If economic and political conditions gradually improve – for instance, if peace in the region holds, sanctions remain lifted, and cautious reforms are undertaken – Eritrea could begin to catch up. Under such scenarios, one might see foreign investment into telecom (bringing faster networks), the return of some diaspora entrepreneurs (introducing small IT businesses or digital services), and partnerships with international organisations to build tech capacity.

For now, Eritrea’s digital marketing and online business environment will continue to mirror the overall economy: small-scale, tightly regulated, and oriented more toward basic communication than commercial innovation. Companies will rely on traditional outreach until the internet becomes an effective channel. The government will likely maintain strict oversight of digital domains, prioritising control and security over rapid expansion of access. In the coming years, the emphasis may be on improving infrastructure – for example, finally connecting to a submarine fiber optic cable, expanding 3G/4G coverage, and training more ICT professionals – as prerequisites for any flourishing of a digital economy.

In conclusion, the economy of Eritrea is a case of unrealised potential in many respects. Geography has gifted it strategic trade routes and resources, yet utilisation has been limited. Its people are resilient and industrious, yet their economic activities remain mostly informal or state-assigned. The internet and digital sphere encapsulate this story: the foundations have been laid (a national telecom network exists, a tech-educated cohort exists), but the superstructure of a vibrant digital economy has yet to be built. Emphasising development of the internet and opening space for digital enterprise could, in time, play a catalytic role in Eritrea’s economic growth. A more connected Eritrea would mean not just greater communication, but also new avenues for business, education, and integration into the global market. That, however, will depend on policy decisions and investments in the near future. Until then, Eritrea’s economy will continue to progress slowly, with the digital component remaining a small, albeit growing, part of the overall picture.