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After nearly quarter of a century of independence, Eritrea under the repressive regime of Dictator Isayas Afeworki remains at the bottom of all world indexes – even in sports in which it is the 202^nd out of 202. But few would care about the sports index: the worst is when you lack in the economic sector, also in technological connectivity.

Least Connected in the World

The June 2014 report of the UN International Telecommunications Union (ITU) confirmed that Eritrea is “the least technologically connected country in the world”. Its telecommunication is under the monopoly of the state-owned EriTel with no other competitor in the country. At 1% of potential users of fixed-line and mobile line, Eritrea ranks the lowest in the world.

The Business Monitor International (BMI) lamented on 24 December 2014 that “by preventing international investors from entering the Eritrean telecoms market, there will be no significant boost to growth”. BMI continued to observe that “international investment would bring long-term benefits to the market, extending networks to rural areas and lowering prices that would enable more Eritreans to participate in the telecoms market.”

Human Development Index (HDI)

This is one of the most important indices that measure health/life expectancy, access to knowledge and a decent standard of living. In the 2014 HDI, Eritrea again ranked at the bottom: 182^nd out of 187 countries put to the measure. Djibout ranked a bit better by being the 170^th in the list, Ethiopia the 1773^rd and the Sudan 166.

Human Development Index map for Africa

Eritrea’s Economic “Freedom” Score

Eritrea’s economic freedom score was put at 38.5, making its economy one of the least free in the 2014 index of the Heritage Foundation. Eritrea was also ranked 45th out of the 46 countries in the Sub-Saharan Africa region in 2014 although the revenues from the mining sector (which are consumed for the regime’s security concerns) are expected to improve the index to be issued in 2015.

The Heritage Foundation’s report of 2014 further states as follows:

“Corruption is a major problem. The president and his small circle of senior advisers and military commanders exercise almost complete political control. The politicized judiciary, understaffed and unprofessional, has never ruled against the government. Protection of property rights is poor. The government has a history of expropriating houses, businesses, and other private property without notice, explanation, or compensation. ...... State domination of the economy acts as a deterrent to foreign investment. The financial system, consisting mainly of a small banking sector, remains severely underdeveloped and subject to heavy state control. Private-sector participation in the system remains constrained”.

Also in spite of the lies churned out by the regime, public debt has reportedly reached 125 percent of GDP, making Eritrea one of the most indebted countries in the world.

The report continues to confirm the following:

“Eritrea’s economic freedom was first assessed in the 2009 Index and has remained stagnant near the bottom of the Index rankings. Score improvements in government spending and business have been completely offset by deteriorations in six of the 10 economic freedoms including investment freedom, labor freedom, and fiscal freedom. Scores for financial freedom and property rights have not changed. The country continues to be stuck in the “repressed” category.

“Strong GDP growth has been led by increased foreign investment in the mining industry, but substantial mineral revenues benefit only a narrow segment of the population. Chronic deficits due to large military spending plague public finance, worsening already fragile monetary stability. A repressive central government continues to marginalize the domestic private sector, perpetuating an uncertain investment climate.

“Inconsistent enforcement of regulations and other institutional shortcomings often impede business activity and undermine economic development. Launching a business takes more than 80 days and is costly. The labor market remains underdeveloped, and much of the labor force is employed in the informal sector. Monetary stability has been weak. Subsidies and price controls are core features of the country’s command economy.”