• Eritrea faces some of the Horn of Africa’s deepest infrastructure and climate-resilience gaps, limiting trade and productivity, according to the AfDB.
• Drought exposure and food insecurity create regional spillover risks, prompting targeted support for water systems and climate-resilient agriculture.
• The Bank’s strategy aims to reintegrate Eritrea into regional value chains after years of limited engagement.

The African Development Bank has launched a new strategy to support Eritrea’s growth and resilience. According to AfDB documentation, the country continues to experience severe development constraints, including limited transport infrastructure, low energy access, and high exposure to climate shocks. These factors reduce national productivity and restrict Eritrea’s participation in regional trade.

The Bank notes that prolonged drought episodes have affected agricultural output, contributing to food insecurity with cross-border implications for the Horn of Africa. The strategy therefore prioritises support for water management systems, climate-resilient agriculture, and rural infrastructure. The AfDB indicates that these interventions are necessary to stabilise livelihoods in drought-prone areas and reduce vulnerability to recurring shocks.

Eritrea’s private sector remains narrow, shaped by years of economic isolation. The AfDB positions its re-engagement as a pathway to stimulate productive investment and expand small enterprise activity through targeted financing. Transport corridor improvements and the expansion of energy access are among the priority investment areas identified by the Bank.

The AfDB states that its renewed involvement also reflects a mandate to ensure inclusive access to development financing for all member states. The strategy marks the Bank’s first structured re-engagement with Eritrea after a long period of limited operations, to align the country more closely with regional infrastructure programs and value-chain development initiatives.

The Bank highlights that strengthening Eritrea’s transport and energy systems will improve its connectivity with neighbouring markets, supporting the broader regional integration agenda for the Horn of Africa. By addressing the structural gaps that hinder trade flows, the AfDB expects to increase the participation of Eritrean producers in regional corridors.

The strategy also emphasises institutional capacity-building, including support for public financial management and project implementation systems. According to the AfDB, improved institutional readiness is necessary to mobilise investment and ensure the viability of future infrastructure projects.

By Cynthia Ebot Takang