Although Eritrea has a self-proclaimed policy of self-reliance the country remains heavily in debt. According to the World Bank, Eritrea’s debt to GDP in 2023 was estimated at 219% although the figure has since marginally dropped to 211% in 2024. This is significantly above Africa’s average of 63.5%. Eritrea largely owes this debt to domestic banks due to sanctions limiting its access to foreign financial markets.
By this account, Eritrea has one of the highest debt to GDP ratios in sub-Saharan Africa and globally and is in debt distress according to the World Bank and IMF. In 2022, the country spent 33.4% of the national budget on debt servicing. Heavy debt repayment has undermined budgeting on social services such as…
