Investment Policies



Economic Policies

  • Implemented a liberal investment law.
  • Took a principled stand to privatize state-run enterprises.
  • Adjusted the exchange rate to make it competitive and attractive to foreign investment.
  • Liberalized tax systems.
  • Adopted responsible fiscal policies.


Policies in Regard to Investment

  • Private investment (local & foreign) can participate in all sectors of the economy with no restrictions and discrimination.
  • Promote the private sector and protect its interest.


Foreign Direct Investment (FDI)

  • Domestic capital and FDI are given equal opportunity.
  • All sectors of the economy are open to foreign capital.
  • Can establish enterprise on its own or in partnership with local capital.


Investment Incentives

  • Capital goods, intermediates, industrial spare parts and raw materials attract 2% customs duty.
  • Raw materials and intermediate inputs attract 3% sales tax.
  • Raw materials and inputs used for export production attract rebate on sales tax.
  • Exports are exempted from export duty and sales tax.
  • Investors can open and operate foreign exchange account in Eritrea and use it for investment and procurement.
  • Foreign exchange allocations for business enterprises.
  • Investors can retain up to 100% of export earnings in foreign currency.
  • Investors can remit net profit and dividends accrued from investment capital.
  • Investor can remit fees or royalty in respect of any technology transfer agreements.
  • Investor can remit proceeds received from liquidation of investments and /or expansion.
  • Investors can remit payments received from sale or transfer of shares.
  • Expatriates employed from abroad can remit salary savings in accordance with Labour Law of the Eritrea and Exchange Regulation of the Bank of Eritrea.


Investment Guarantees

  • Eritrea is a signatory of World Bank’s Multilateral Investment Guarantee Agency (MIGA) and International Convention on Settlement of Investment Dispute (ICSID).
  • Eritrea welcomes Bilateral Agreements for Promotion and Protection of Investments with interested countries.
  • Government of Eritrea guarantees investment or property on investment will not be nationalized or confiscated and further guarantees that investments will not be attached, seized, frozen, expropriated or put under Government’s custody without due process of law.