Strategically important position on Red Sea. Potential for a mining industry and for foreign earnings from possible oil exports. Government commitment to reducing dependence on food aid. Potential for tourism on Red Sea.
Weaknesses
Lack of basic information and equipment. Coherent economic policy still being formulated. Not an aid priority for Western donors. Legacy of disruption and destruction from civil war. Port of Massawa heavily bombed. Most of population living at subsistence level. Susceptibility to drought and famine. Expense of repatriating and supporting the 750,000 who fled abroad as refugees and now wish to return.
