Eritrea: Things are looking up for Eritreans
|Things are looking up for Eritreans. Photo: Fireworks show celebrating the 22nd Independence Day anniversary in Asmara - May 24, 2013|
Amid a vicious demonization campaign in the media, Eritrea continues to march on the right path to development. Today, the country is leading sub-Sahara Africa in most of the important health and socio-economic indicators. As a result, it's been dubbed the 'Prince of Progress' by the Africa Research Institute; a London-based African think tank. But the achievements Eritrea has reached in the past two decades will pale in comparison over the next five years. There are four reasons why this will be the case:
1) Economy: Over the next five years, Eritrea aims to transform itself from a subsistence agricultural polity to a manufacturing and knowledge-based economy. To reach this end, education has received the lion's share of the country's resources. Currently, the state provides universal education and spends 45% of its annual budget on education. By allocating significant funds towards this sector, the government seeks to nurture and develop human capital to lead the economy.
#Trade between India & #Eritrea grew 380% from FY 2005-6 to FY 2011-12. FY 2012-13 inline for astonishing growth led by export from Eritrea.
— Natna Social Media (@NatnaSocial) May 29, 2013
18 exporting companies from Eritrea r showcasing their products in Africa Fair YOKOHAMA Japan: congratulations!
— Ambassador Estifanos (@AmbassadorEstif) May 30, 2013
2) Privatization: Since the passing of Proclamation No. 171/2012 last year, the government has focused on developing the private sector by giving potential investors favorable investment opportunities. Additionally, the government has accelerated denationalization in the country by privatizing nearly 250 state-owned companies. In doing so, the government raised significant capital and stopped the drain of state resources that were used to keep some of the struggling companies afloat.
"The country’s (Eritrea) gross domestic product grew by 17% in 2011 and by 7% in 2012 – primarily because of gold revenue. An 8% growth rate is predicted for 2013 with the emergence of copper mining. Industry experts predict current foreign direct investment in the mining sector has just touched the tip of a potential minerals bonanza." — Professor Iqbal Jhazbhay
3) Minerals: Due to a sensible mining code put into law by the state, there are around 20 international firms engaged in exploration in Eritrea. Currently, Nevsun Resources is the only mining company in full operation. The next company joining them is Sunridge Gold Corporation, which expects production by mid-2015. In total, Sunridge and the state-owned Eritrean National Mining Corporation (ENAMCO) should see over $11 billion dollars worth of minerals from their four mining sites in Debarwa, Adi Nefas, Embadorho and Gupo Gold.
@wediwelday @payitforward87 Every miner I know in Eritrea said it's the best place in Africa to operate.
— zerg_rush (@zerg_rush01) June 2, 2013
4) Potash: With an estimated value of over $150 billion dollars, Eritrea's massive potash mine is perhaps the most significant game changer. The Colluli Project is jointly owned by Australia's South Boulder Mines and ENAMCO. Together, they have formed a new company called Colluli Mining Share Company (CMSC) and have a 50/50 ownership. The company believes initial production will begin by 2016 or sooner and will have a mine life of over 100 years. Once in full capacity, Eritrea will replace Canada as the world's largest exporter of potash.
While Eritrea relies on its agricultural, mineral and human resources to meet its development goals, the same can not be said about many sub-Saharan African states. According to Reuters news agency, "half of African countries rely on aid as the largest external source of finance for development needs." As Dr. Samuel Mahaffy points out, Eritrea's success without assistance from NGO's makes a strong case for re-evaluating their presence in developing countries.
The fact that #Eritrea has achieved so much without domination of NGO's should be cause for deep reflection in the philanthropic community.Sponsored Ads
— Dr. Samuel Mahaffy (@samuelmahaffy) May 31, 2013
Eritrea: Things are looking up for Eritreans Reviewed by Admin on 9:50 AM Rating: