Mereja.Forum

[DefendTheTruth]

የኢርትሪያ የአመት ገቢዋ (GDP) 2 ቢልዮን USD ነዉ፣ ይህ ፕሮጀክት (Bishoftu Internation Airport) ደግሞ ወደ 12 USD ነዉ የምፈጀዉ፣ ያ ማለት ኢርትሪያ ለ6 አመት ያህል ምንም ነገር ሳትቀምስ ገቢዋን ሁሉ ታጠራቅም ና ፕሮጀክቱን ታቅዳለች። በ6 አመታት ዉስጥ የኤርትሪያ ሕዝብ፣ በራሃብ ወደ አፈርነት ተቀይሮዋል ማለት ነዉ፣ እግዚያብሔር አያድርስ እንጂ። እንድህም ሆኖ የሻቢያ ቡቹሎች የለምንም እፍረት የኤንተርኔት መድረክ ላይ ወጥቶ ክፍት አፋቻዉን ከማሳያት ወደ ኃላ አይሉም፣ ይህ የተፈጥሮ እርግማን መሆን አለበት!!

[TesfaNews]

I asked Ai and this was the response

Eritrea’s GDP is one of the lowest in the world—estimated at roughly $2.5 billion—due to a combination of rigid state control, a unique (and controversial) labor system, and extreme isolation from the global economy.
While its neighbors have seen periods of rapid industrialization, Eritrea’s economy has remained largely "frozen" since the late 1990s. Here is a breakdown of why:


1. The "Open-Ended" National Service
This is perhaps the biggest drain on the economy. Eritrea requires all citizens to undergo national service, which often becomes indefinite. 
• Brain Drain: Because service is open-ended and low-paying, a huge portion of the young, productive workforce flees the country (Eritrea is one of the world's leading sources of refugees). 
• Labor Misallocation: Instead of working in the private sector or starting businesses, much of the population is used as "forced labor" for state-run projects, which are rarely efficient. 

2. A Total Command Economy
Unlike most modern nations, Eritrea does not have a true "private sector."
• State Monopoly: The ruling party (PFDJ) and the military control almost all major businesses. 
• **No Commercial Code: There is little to no legal framework for private investment. If you open a shop or a factory, the government can seize it or shut it down without explanation. 
• Strict Currency Controls: The government tightly regulates the Nakfa (local currency), making it nearly impossible for businesses to get the foreign exchange needed to import tools, fuel, or parts.

3. Dependence on Mining & Rain
The economy is extremely "shallow," meaning it relies on only two things:
• Mining: Gold, copper, and zinc (and more recently potash) make up over 90% of exports. When global metal prices drop, the entire country’s revenue collapses.
• Subsistence Agriculture: About 80% of the population works in farming, yet the sector produces very little of the GDP. Because the country is prone to chronic droughts, one bad rain season can lead to immediate food insecurity.
 
4. Severe Debt Distress
Eritrea is currently in what economists call "debt distress." 
• Its public debt has historically hovered around 160% to 200% of its GDP. 
• Because it is largely cut off from international financial markets and has a history of sanctions, it cannot easily borrow money for infrastructure. Most of the debt is owed to domestic banks, which drains the capital that should be going to small businesses. 

5. Isolation and "Autarky"
The government follows a policy of self-reliance (autarky). While this is intended to prevent foreign interference, it effectively locks the country out of the global trade system. 

• Banned NGOs: Most international aid organizations and NGOs are banned, meaning the country misses out on billions in development assistance that its neighbors receive. 

• Regional Instability: Conflict and long-standing tensions with Ethiopia and Djibouti have historically kept borders closed, cutting off Eritrea’s ports (Massawa and Assab) from becoming the regional trade hubs they naturally should be.

According to AI Eritrea is more landlocked than Ethiopia

[TesfaNews]

Djbouti is so badly in debt they might as well join ethioppia

Djibouti’s debt situation is one of the most precarious in the world.

As of 2026, the country remains in "Debt Distress," a technical term used by the IMF to describe a nation that is either already defaulting or on the verge of being unable to meet its repayment obligations.


1. The Total Numbers (2025/2026 Estimates)
• Total External Debt: Approximately $3.5 billion to $3.7 billion.
• Debt-to-GDP Ratio: Around 65% to 70%.
• Context: While 70% doesn't sound as high as Japan (260%) or the US (120%), it is dangerous for a small developing nation because Djibouti's income is very unstable and most of the debt is in foreign currency, making it harder to pay back if their own economy dips.


2. Who do they owe? (The "China Factor")
Djibouti’s debt is unique because it isn't spread out among many banks; it is heavily concentrated. 

• China (Exim Bank of China): China is Djibouti’s largest creditor by a massive margin. China holds over 50% to 60% of Djibouti's total external debt (estimated at roughly $1.4 billion to $2 billion). 

• Multilateral Institutions: The World Bank (IDA) and African Development Bank hold most of the remaining balance, usually at lower interest rates ("concessional" loans).

• The "Paris Club": A smaller amount is owed to a group of Western creditor nations.


3. What did they buy with it?
The money wasn't spent on social programs; it went into massive "bricks and mortar" infrastructure intended to make Djibouti the "Singapore of Africa."

1. Addis Ababa–Djibouti Railway: A multi-billion dollar electric rail line to Ethiopia. 
2. The Ethiopia–Djibouti Water Pipeline: To bring fresh water from the Ethiopian highlands. 
3. Port Modernization: Specifically the Doraleh Multipurpose Port.


4. Why is the debt so dangerous right now?
In late 2022 and 2023, Djibouti actually suspended debt repayments to China because the costs had tripled. In 2025 and 2026, they have been operating under a "moratorium" (a temporary hall on payments), but the bill is still growing. 

• The "Arrears" Problem: Djibouti has fallen behind on payments to at least 11 different creditors. As of 2025, their "arrears" (overdue unpaid bills) totaled about 2.7% of their entire GDP. 

• Weak Debt-Carrying Capacity: The IMF recently downgraded Djibouti’s capacity to manage debt to "Weak." This means they basically aren't allowed to take out any more "normal" loans—they can only accept grants (free money) or extremely low-interest aid. 


Summary: The "Landlord with a Massive Mortgage"
Think of Djibouti as a landlord who took out a massive loan to build a luxury skyscraper. The skyscraper is full of tenants (Ethiopia and foreign militaries), but the mortgage payments are so high that even with the building full, the landlord is still broke and can't afford to fix the plumbing for his own family.

[DefendTheTruth]

Thank you TesfaNews for providing the overview of the key figures of this meaningless entity. While Eritreans are hard working and entrepreneurs, only lacking the courage to stand up for their freedom and win it back, the mentality of the clique holding the power endlessly made the "country" to a global laughing stock, at the same time the shameless creatures of the clique's cyber warriors are 24/7 on here bad mouthing others, endlessly.

Inept creatures!
Eritrea's case a truly tragedy of human kind on the global scale.

I asked Ai and this was the response

Eritrea’s GDP is one of the lowest in the world—estimated at roughly $2.5 billion—due to a combination of rigid state control, a unique (and controversial) labor system, and extreme isolation from the global economy.
While its neighbors have seen periods of rapid industrialization, Eritrea’s economy has remained largely "frozen" since the late 1990s. Here is a breakdown of why:


1. The "Open-Ended" National Service
This is perhaps the biggest drain on the economy. Eritrea requires all citizens to undergo national service, which often becomes indefinite. 
• Brain Drain: Because service is open-ended and low-paying, a huge portion of the young, productive workforce flees the country (Eritrea is one of the world's leading sources of refugees). 
• Labor Misallocation: Instead of working in the private sector or starting businesses, much of the population is used as "forced labor" for state-run projects, which are rarely efficient. 

2. A Total Command Economy
Unlike most modern nations, Eritrea does not have a true "private sector."
• State Monopoly: The ruling party (PFDJ) and the military control almost all major businesses. 
• **No Commercial Code: There is little to no legal framework for private investment. If you open a shop or a factory, the government can seize it or shut it down without explanation. 
• Strict Currency Controls: The government tightly regulates the Nakfa (local currency), making it nearly impossible for businesses to get the foreign exchange needed to import tools, fuel, or parts.

3. Dependence on Mining & Rain
The economy is extremely "shallow," meaning it relies on only two things:
• Mining: Gold, copper, and zinc (and more recently potash) make up over 90% of exports. When global metal prices drop, the entire country’s revenue collapses.
• Subsistence Agriculture: About 80% of the population works in farming, yet the sector produces very little of the GDP. Because the country is prone to chronic droughts, one bad rain season can lead to immediate food insecurity.
 
4. Severe Debt Distress
Eritrea is currently in what economists call "debt distress." 
• Its public debt has historically hovered around 160% to 200% of its GDP. 
• Because it is largely cut off from international financial markets and has a history of sanctions, it cannot easily borrow money for infrastructure. Most of the debt is owed to domestic banks, which drains the capital that should be going to small businesses. 

5. Isolation and "Autarky"
The government follows a policy of self-reliance (autarky). While this is intended to prevent foreign interference, it effectively locks the country out of the global trade system. 

• Banned NGOs: Most international aid organizations and NGOs are banned, meaning the country misses out on billions in development assistance that its neighbors receive. 

• Regional Instability: Conflict and long-standing tensions with Ethiopia and Djibouti have historically kept borders closed, cutting off Eritrea’s ports (Massawa and Assab) from becoming the regional trade hubs they naturally should be.

According to AI Eritrea is more landlocked than Ethiopia

[DefendTheTruth]

The usual China pattern, debt trap! Djibouti is effectively under China's debt trap and China's tools are all well known internationally, to collect its outstanding debts to the third world countries like Djibouti. One may recall what has happened to Sri Lanka just few years back.

It will seize Djibouti's ports and I see in this a big chance for Ethiopia's quest for unimpeded Sea access. Ethiopia can pay this amount of China's debt within moment's notice and take control of the Ports (effectively buying out the country called Djibouti) and make Ethiopia no more landlocked!