In a sign that Eritrea’s financial hardship is getting worse, the Eritrean regime is now asking businessmen to provide financial help.   The government's hard currency reserve is virtually depleted, making importation and loan repayment increasingly difficult and placing challenges on its financial engineers, particulalry the ruling party's Economic Director, Hagos Ghebrehiwet "Kisha".
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At a meeting held in Asmara, the businessmen complained that they could “have helped if we had been working…but now with our children in the trenches, with construction work in a standstill and a spiraling inflation, we need the help of the government,” according to our source.

The regime gives no indication that it intends to demobilize; quite the opposite.  All males under the age of 48 have been told to report to the Ministry of Defense. People with large families are complaining that it will be problematic to maintain a family.

Meanwhile, government officials continue to seek asylum in foreign lands. The latest is Ghirmay “Jerry”, a Director General at the Ministry of Labor and Social Affairs who is believed to be seeking asylum in Italy, after he was sent to Japan to facilitate grain shipments.

While Eritrean officials and artists are “voting with their feet,” Indian expatriates who teach at Eritrean schools are also not returning to Eritrea once they go home.   Mai Nefhi Technical College is said to be particularly impacted by teacher shortages.

Economic Indicators

Eritrea’s few light industries are shrinking even further.   Asmara Coca Cola, Match and Candle factories, as well as Tesinma Metallurgic Factory in Decamere have closed for good.  Many of the businesses closed had been in operation for decades. The latest to close is Asmara Soap Factory [Omo] in the Sembel neighborhood of Asmara.  In a meeting he held with his employees, the owner openly wept as he discharged their employment.

Since the regime declared an import ban, prices for basic commodities and staples have increased by 300%--assuming they are available. A matchbox sells for 2.00 Nakfa; Omo for 28.00; soap for 16.00; sugar for 20.00 per kilo and cooking oil 50.00 per kilo. Wheat flour is totally unavailable—when available, flour fetches 1000.00 Nkf per quintal.