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Eritrea - Interim Country Strategy Paper (I-CSP) 2017-2019

17-Nov-2017

Country Context: Since attaining independence in 1993, Eritrea has had a centralized one-party political system. The Government has, nonetheless, been conducting competitive elections at the local levels, commonly referred to as Zobas and sub-Zobas. The country also continues to experience relatively internal political and social stability and peace. The average annual real GDP growth rate fell from 1.7% in 2014 to 0.3% in 2015, but recovered by 3.8% in 2016. In spite of Eritrea’s low economic growth, the country has managed to reduce its poverty levels from 64% in 2002 and to an estimated 58% in 2015. However, the country still faces a number of development challenges that hinder inclusive growth. The major challenges are inadequate infrastructure, particularly, water and sanitation, energy, housing, and rural agricultural irrigation systems, marketing facilities, and high yielding inputs and technologies. Other challenges are lack of skills, farmers extension services, and inefficient land management systems (whose combined effects has been low agricultural productivity), weak public governance and institutional capacity, and a poorly developed industrial sector due to nascent and restricted private and financial sectors. The Eritrea’s Nationally Determined Contribution (NDC) to the Paris Agreement recognizes the challenge of adverse climate change. To redress this, the NDC highlights the agriculture and land management and energy, amongst other things, as priorities for both mitigating and adapting to climate change.

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