World Economy

Eritrea Economy in Limbo

Eritrea Economy in LimboEritrea Economy in Limbo

The recent government decision to withdraw the licenses of businesses and freeze their bank accounts has resulted in freezing the entire economy. Eritreans are complaining that the unpopular government policy has destroyed the already weak economy and made many people lose their means of livelihood, reported. So far, over 300 businesses that didn’t deposit their revenues in banks have been closed. Conversely, the ripple effect has reached the few suppliers and wholesalers who dealt with the closed businesses are also going through difficult times. Villagers who supply the major markets with produce are watching their products go bad as restaurants and stores are not willing to buy them. A vegetable store owner said, “We cannot buy more when the vegetable and fruits that we already had have perished for lack of buyers whose businesses are closed.” In addition, villagers who sell chicken, goats and produce to the major markets are not willing to receive checks for their sales.

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