African Economic Outlook 2014: Eritrea’s Private and Financial Sector

By Magidu Nyende and Luka Okumu, A combination of restrictive government policies, shortages of foreign exchange, declining remittances and heavy government borrowing from the banking sector has severely inhibited private-sector activity and development in Eritrea. Consequently, the private sector remains small, underdeveloped and crowded out by the state’s growing role in the economy. 

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