Tag Archives: Eritrea

Comparative Analysis of Opinions of Enterprise Managers and Business Students on Youth Entrepreneurship Development in Enterprises in the Context of Eritrea (Published)

The development of youth entrepreneurship has been forwarded as a very attractive alternative both to help the growing number of unemployed youth and to harness the potentials of the youth in an effort to bolster the economy of a country. This study has attempted to explore the level of importance of various factors for youth entrepreneurship development in enterprises in the context of Eritrea by seeking the opinions of private and public manufacturing enterprise managers and senior students in a business college. A total number of 150 managers and students were asked to rate 56 factors that are expected to influence or affect youth entrepreneurship development in enterprises. Respondents were asked to rate each factor, presented in the form of 5-points likert-scale. The ratings of the factors of importance for youth entrepreneurship development in enterprises by the three groups of respondents have a moderate degree of correspondence (as measured by the Spearman’s rho). Among the factors considered for youth entrepreneurship development in enterprises, prioritized factors by private enterprise managers are related with provision of more supportive environment for youth. Public enterprise managers have prioritized factors that target for the development of enterprise such as technology transfer and education while students have prioritized factors related with ambition, individual initiative and hard work In general, private enterprise managers were found to rate the factors higher compared to either public enterprise managers or the student group. The study has shown that the three groups of respondents have somewhat different opinions on how youth entrepreneurship in enterprises can be developed. This suggests the need to take into account the viewpoints of various relevant stakeholders when such programs of youth entrepreneurship development are envisioned.    

Keywords: Business Students, Entrepreneurship, Eritrea, Managers, Youth

Export Product and Market Diversification and Its Implications on the Performance of Eritrea’s Foreign Trade (Published)

Low level of export product diversification and high market concentration are characteristic features of the export sector of many Sub Saharan African (SSA) countries. This situation coupled with limited intra African trade has contributed to deficits in trade balance and overall poor foreign trade performance which has been of concern to policy makers in these countries. In January 2012, the African Union (AU) Summit of African Heads of State and Government endorsed the theme of ‘Boosting Intra-African trade‘ and called on Member States, Regional Economic Communities (RECs) and the AU Commission to promote industrial development with a view to diversify economies and moving away from heavy reliance on traditional primary commodities for export. As the result, efforts have been made by many African countries to diversify exports along intensive or extensive margin. The intensive margin is related with expansion focussed more on current export products, while the extensive margin deals with creating new export products or new markets. In this paper data from Ministry of Trade and Industry (MOTI) on value of exports and imports of Eritrea for the period 2000 to 2015 are used to analyze Eritrea’s foreign trade performance and the trends in trade balance. Value of Eritrean exports by commodity group and destinations for 2000, 2003, 2009 and 2014 are used to compute Normalized Harfindahl-Hirshman Index (NHHI) of export product and market diversification in COMESA region and the rest of the world. The results show, for markets, the NHHI was 0.199 in 2000, 0.123 in 2003, 0.601 in 2009 and 0.354 in 2014 indicating high market concentration of exports in 2009 compared to the other years. For products, the NHHI was 0.169 in 2009 and 0.89 in 2014 indicating high export product concentration index in 2014 explained by the dominance of new export products from the mining sector namely copper ores and concentrates, gold compounds and silver ores and concentrates. This shows that Eritrea has not made any significant breakthrough in export diversification and is yet to diversify into the higher value added activities. Above all, export sector performance has been low and the study suggests that appropriate trade policy and strategy is needed to enhance regional and global trade, expand export markets and diversify its export products through value addition and further processing of domestic and foreign raw materials

Keywords: Eritrea, Export, Market Concentration, Product Diversification, Regional Integration

SOCIO-ECONOMIC DETERMINANTS OF ERITREA’S SAVINGS AND MICRO CREDIT PROGRAM LOAN REPAYMENT PERFORMANCE: A CASE OF THE DEKEMHARE SUZ-ZONE (Published)

The Savings and Micro Credit Program of Eritrea was established to provide financial services to the poor and lower income individuals to enhance their business activities and alleviate poverty level. The study analyzed the socio-economic factors that affect the institution’s loan repayment performance and a sample of 140 beneficiaries was fixed from the Dekemhare Sub-Zone using the Stratified Sampling technique. A structured questionnaire was used to collect the primary data and descriptive statistics and the probit model were employed to analyze the data. Results of the regression analysis revealed that the level of education, loan amount and loan category have insignificant effect on the probability of the SMCP loan repayment. On the other hand age, gender, type of business and credit experience are significant determinants where age and type of business have negative relationship and gender and credit experience have positive relationship with the loan repayment probability

Keywords: Eritrea, Loan Repayment Performance, Microcredit, Microfinance, Probit, Savings and Micro Credit Program