Eritrea, a country situated in northeast Africa, has recently signed a memorandum of understanding (MoU) with China to join the Belt and Road Initiative (BRI) in 2021. This significant development opens doors for Eritrea to enhance its infrastructure, diversify its economy, and establish stronger ties with China. In this detailed blog post, we will delve into the strategic importance of Eritrea’s participation in the BRI, explore the ongoing projects between China and Eritrea, and analyze the potential for future cooperation.
Eritrea’s Strategic Importance
Eritrea’s geographical location is strategically significant for the Belt and Road Initiative. The country possesses access to vital trade routes, including the Red Sea, the Suez Canal, the Arabian Gulf, and the Indian Ocean. This makes Eritrea an attractive partner for China’s ambitious infrastructure and trade project. With a land area of 117,600 square kilometers and a population of approximately 4.5 million, Eritrea’s economy is primarily reliant on agriculture. However, the country aims to diversify its industries and move towards a higher standard of industrialization with the support of China’s involvement.
Chinese Investments and Infrastructure Projects
China’s engagement in Eritrea has been steadily increasing, with investments and infrastructure projects driving economic growth and development. Notably, in late 2019, the China Shanghai Corporation for Foreign Economic and Technological Cooperation (SFECO) began the construction of part of the 500 km road connecting Eritrea’s Massawa and Assab harbors. These ports also function as Special Economic Zones, attracting further investment and trade opportunities.
Additionally, China recently unveiled the Asmara mining project, a major initiative worth half a billion dollars. The project is a joint venture between Chinese SRBM and Eritrea’s state-owned ENAMCO. With known deposits at Emba Derho, Adi Nefas, Gupo, and Debarwa, the mining project is expected to yield substantial quantities of copper, zinc, gold, and silver over a projected 17-year lifespan. This venture not only brings economic growth but also offers opportunities for job creation and technological advancements.
Trade and Economic Potential
While Eritrea is not currently a member of the African Continental Free Trade Agreement (AfCFTA), which has eliminated border tariffs between African nations, joining the initiative in the future seems probable with China’s influence and interest in increasing trade. Eritrea’s membership in AfCFTA would create opportunities for expanding trade relations with other African countries, facilitating economic growth and diversification. The current volume of trade between China and Eritrea is relatively modest, with China’s exports to Eritrea totaling just US$71 million in 2020 and Eritrean exports being negligible. However, with increased cooperation and improved infrastructure, trade between the two nations has the potential to grow significantly.
China’s Role in Stabilizing the Region
China’s involvement in Eritrea extends beyond economic interests, as it plays a crucial role in stabilizing the region. Eritrea has experienced an ongoing conflict with its neighboring country, Ethiopia, for several years. This conflict has resulted in periodic flare-ups and instability in the region. By engaging with both Eritrea and Ethiopia, China aims to facilitate dialogue, promote peaceful resolutions, and ensure stability and security in the Horn of Africa. China’s efforts to mediate conflicts and foster cooperation among neighboring countries contribute to regional peace and development.
Prospects for Future Cooperation
During Eritrean President Isaias’s visit to Sichuan, he expressed great interest in expanding cooperation with China in various sectors. These sectors include agriculture, clean energy, manufacturing, mining, education, health, and cultural exchanges. Eritrea, with its focus on agriculture as the main industry, seeks to benefit from advanced technologies in agricultural irrigation and fresh-keeping developed in Sichuan. By implementing these technologies, Eritrea aims to improve agricultural productivity and ultimately uplift the livelihoods of its farmers.
Another area of potential collaboration discusses between Eritrea and China during the visit lies in clean energy. Eritrea, with its abundant geothermal resources, expresses a keen interest in utilizing geothermal power generation in the future. The country also explores the possibilities of solar and wind energy to diversify its energy sources. Sichuan, known for its expertise in clean energy technologies and rich experience in this field, presents a valuable opportunity for cooperation. The development of clean energy not only promises immediate economic benefits but also contributes to long-term sustainability and improved quality of life for the people of Eritrea.
President Isaias emphasized his desire to further discuss detailed plans with representatives of Sichuan enterprises during a future meeting in Asmara, the capital of Eritrea. This signifies Eritrea’s commitment to enhancing cooperation and creating an environment conducive to fruitful partnerships. The exchange of expertise, technology, and knowledge between the two nations has the potential to drive significant progress in various sectors and promote mutual development.
Eritrea’s decision to join the Belt and Road Initiative marks a significant milestone in the country’s pursuit of economic growth, infrastructure development, and regional cooperation. China’s investments in Eritrea, including infrastructure projects and mining ventures, provide opportunities for job creation, technological advancements, and the diversification of the country’s economy. Moreover, Eritrea’s participation in the BRI opens doors for enhanced trade relations with other African nations, potentially leading to increased economic integration and prosperity.
Beyond economic benefits, China’s involvement in Eritrea plays a crucial role in stabilizing the region. By engaging with both Eritrea and Ethiopia, China aims to foster dialogue and peace, contributing to regional stability and development in the Horn of Africa.
Looking ahead, the prospects for future cooperation between Eritrea and China are promising. Eritrea’s interest in various sectors, such as agriculture, clean energy, manufacturing, and mining, aligns with China’s strengths and presents ample opportunities for collaboration. By leveraging China’s expertise and resources, Eritrea can accelerate its development agenda and improve the livelihoods of its people.
As Eritrea continues its journey as a member of the Belt and Road Initiative, the partnership with China holds great potential for transformative change. Through joint efforts and shared goals, the collaboration between Eritrea and China has the power to drive sustainable development, regional integration, and prosperity in the years to come.