The African Development Bank has released its Interim Country Strategy Paper (I-CSP) 2025–2027 for Eritrea, outlining a focused plan to strengthen infrastructure, expand economic opportunities and increase resilience across the country.

Eritrea is navigating modest economic growth while confronting development challenges, including low productivity, climate pressures, limited infrastructure and a small private sector. The new strategy responds to these needs with a clear objective: laying the foundations for economic diversification and structural transformation.

The I-CSP centres on one overarching priority: developing quality, sustainable infrastructure to support agricultural value chains, drive diversification and stimulate higher value-added production. To achieve this, the Bank will deepen support in three core areas: energy, water and sanitation, and economic and financial governance.

In the energy sector, the Bank will partner with Eritrea to expand reliable and affordable electricity, with an emphasis on renewable power solutions. Improved access to energy is expected to reduce production costs, strengthen agro-processing, and open new opportunities for households and small businesses.

Water and sanitation investments will increase access to safe water for communities and farmers. Strengthening water systems will improve public health, enhance agricultural productivity and bolster climate resilience.

Support to economic and financial governance will focus on modernising public financial management, strengthening domestic revenue systems and enhancing transparency. Stronger institutions will allow Eritrea to attract investment and create a more predictable environment for economic activity.

The strategy is backed by an indicative financing package of $119.7 million. It includes major investments in the three priority sectors and targeted technical assistance to build institutional capacity, support reforms and expand knowledge in key areas such as mining, agriculture and climate resilience.

Expected outcomes include expanded access to electricity, improved water and sanitation services, stronger fiscal and governance systems, and better conditions for private sector development. As these improvements take shape, more jobs are expected in agriculture, agro-industry and emerging economic sectors. The strategy will also help Eritrea strengthen its ability to absorb shocks and sustain long-term growth.

Kenneth Onyango, the Bank’s Chief Country Program Officer for Eritrea, noted: “This strategy reinforces the Bank’s ongoing partnership with Eritrea to enhance essential infrastructure and creates opportunities for people and communities. It is about building resilience today so the country can prosper tomorrow.”