Eritrea Development Futures
Summary
The report projects that Eritrea's economy will grow from US$2.4 billion in 2019 to US$10.1 billion by 2043 under a Current Path scenario, with extreme poverty falling to 13%. It evaluates 11 sectoral interventions—including stability, agriculture, and leapfrogging—finding that trade liberalization and digital/energy infrastructure have the highest potential to increase GDP per capita. A combined Agenda 2063 scenario suggests GDP could reach US$20.4 billion by 2043, though this would increase carbon emissions to 1.5 million tons.
Key insights
- Under the Current Path forecast, Eritrea's economy is projected to grow from US$2.4 billion in 2019 to US$10.1 billion by 2043, with GDP per capita reaching US$3,728.
- Extreme poverty (at the US$1.90 threshold) is forecast to decline from 38.9% (1.36 million people) in 2019 to 13% (680,000 people) by 2043 on the Current Path.
- Carbon emissions are expected to rise from 200,000 tons in 2019 to 1 million tons by 2043 on the Current Path, though the report notes this is from a very low base.
- The 'Leapfrogging' scenario, focusing on renewable energy and ICT, would increase electricity access to 92.1% of the population by 2043, compared to the Current Path's 77.1%.
- The 'Free Trade' scenario, based on the full implementation of the AfCFTA, is identified as having the most significant positive impact on GDP per capita by 2043, reaching US$4,175.
- Agricultural productivity is a critical vulnerability; on the Current Path, agricultural demand is forecast to exceed production by 1.4 million metric tons by 2043.
- The 'Combined Agenda 2063' scenario, integrating all 11 sectoral improvements, could increase GDP to US$20.4 billion and reduce extreme poverty to 2.8% by 2043.
- The Combined Agenda 2063 scenario would lead to higher environmental degradation, with carbon emissions reaching 1.5 million tons by 2043.
Cite the original document
- APA
- Yeboua, K. (2026). Eritrea Development Futures. Institute for Security Studies. https://futures.issafrica.org/geographic/guide.pdf?geography=ER&topic=sectoral-scenarios
- Chicago
- Yeboua, Kouassi. Eritrea Development Futures. Institute for Security Studies, 2026. https://futures.issafrica.org/geographic/guide.pdf?geography=ER&topic=sectoral-scenarios.
- Wikipedia
- {{cite report |last1=Yeboua |first1=Kouassi |title=Eritrea Development Futures |publisher=Institute for Security Studies |date=31 May 2026 |url=https://futures.issafrica.org/geographic/guide.pdf?geography=ER&topic=sectoral-scenarios |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{yeboua2026eritrea, author = {Yeboua, Kouassi}, title = {{Eritrea Development Futures}}, institution = {Institute for Security Studies}, year = {2026}, month = may, url = {https://futures.issafrica.org/geographic/guide.pdf?geography=ER&topic=sectoral-scenarios}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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