Eritrean government has resumed granting and renewing business licenses and permits. Eritrean Ministry of Trade and Industry has confirmed that the process of issuing new business permits and licenses has begun.
The Eritrean government imposed a ban on issuing these permits for business community in March 2020. It was said back then that the ban was imposed due to Covid-19.
Eritrean government in 2015 took drastic economic measures which crushed indigenous businesses. Construction industry was hit the most. The government launch a crackdown on all businesses which needed foreign currency to be run. Eritrean currency Nakfa, back then, had lost much its value. Dollar was available in black market only at high prices. The government stifled all the local businesses which needed dollars. The measures killed the demand for dollars. Eritrean currency’s black market crashed but at the cost of suspension of almost all economic activities.
Since 2015, the government has been hesitant to issue or renew business licenses. It remains to be seen which types of businesses will be allowed to operate now.
Eritrean economy is a closed economy. The government does not publish a budget. The economy is mainly reliant on remittances sent by Eritrean diaspora community.
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