Outsourcing in Eritrea

Outsourcing in Eritrea: Unlocking opportunities through outsourcing Human Resources, Marketing Services, Accounting Functions, Artificial Intelligence, and Information Technology in Eritrea

Eritrea is starting a new chapter in its journey that sees a place in the global outsourcing industry. The nation is frequently praised for its historical significance and unique cultural legacy. It is strategically positioned to participate in the outsourcing industry, using its resources and human capital to attract foreign companies.

Mineral resources are abundant in the nation. Some include potash, copper, gold, silver, and zinc. The nation anticipated 5.7% GDP growth in 2021 and has achieved its goal. It became an active member of regional organizations like IGAD and COMESA to increase the market for import and export opportunities.

Here are the two main reasons you should consider outsourcing in Eritrea:

Focus on Core Areas

Outsourcing your business in Eritrea processes would free your energies and enable you to focus on building your brand, invest in research and development and move on to providing higher value-added services. In Eritrea, some of the most focused and profitable sectors include:

  • Agriculture
  • Fisheries
  • Fish processing
  • Manufacturing
  • Communications
  • Banking
  • Transport
  • Tourism.

Cost Advantages

Eritrea’s most prominent and visible benefit is the lower cost of living. Its average monthly employee salary is estimated at $1,060.00. This number is significantly lower than most countries located in the Western regions. Thus, you can get a firm to handle your services at much lower prices.    

So let’s discover the evolving story of outsourcing in Eritrea in detail!

The Benefits of Outsourcing to Eritrea

Eritrea provides several benefits for businesses that outsource their services. Here are a few of them:

Geographical Advantage

Eritrea’s strategic location along key shipping routes and proximity to global markets can benefit manufacturing, distribution, and supply chain operations businesses. Its advantageous geostrategic location, which includes a lengthy coastline, allows the nation quick access to countries in the Middle East and the Far East.

Eritrea also interacts with nations in East and Central Africa and participates in several regional commercial organizations, notably the Inter-governmental Authority on Development (IGAD).

Economic Development

The economy of Eritrea experienced enormous changes after the war of independence. It experienced considerable growth in recent years, indicated by an improvement in gross domestic product in 2011 of 8.7 percent and in 2012 of 7.5% over 2011

Collaborating with international partners through outsourcing can facilitate knowledge transfer and capacity building within Eritrea. This exchange of expertise can empower local professionals with new skills and best practices, fostering a culture of innovation and continuous improvement.

Eritrea allocates about 45% of its yearly budget to the education sector to develop the skills of the Eritrean people. The high spending on education is justified by having a more substantial number of highly skilled workers increases the nation’s productivity.

Diversification of Industries

Outsourcing can potentially diversify Eritrea’s economy by encouraging the growth of various industries beyond its traditional sectors. By expanding into outsourcing-related activities, Eritrea can reduce its dependence on specific sectors, mitigating economic vulnerabilities and enhancing overall stability.

An assessment by the World Bank indicates that Eritrea’s economy has tremendous room for growth. With a performance of 8.7% in 2011, Eritrea became one of the nations with the fastest-growing economies.

Cultural and Linguistic Alignment

Knowledge of Tigrinya and Arabic can be helpful for doing business in Eritrea as many people in the business world speak these languages. Eritrea has a rich cultural heritage and an understanding of customs and traditions is essential before starting a business.

Sustainable Partnerships

Outsourcing can facilitate long-term partnerships between Eritrean businesses and international counterparts. These collaborations can foster mutual growth, innovation, and shared value while contributing to the broader sustainable development goal.

HR Outsourcing in Eritrea

Businesses have a strategic opportunity to optimize their human resources operations in Eritrea while leveraging the nation’s distinct characteristics. Because of Eritrea’s affordable labour expenses, companies may be able to save a lot of money and manage resources more effectively.

You can access specialist knowledge in negotiating Eritrea’s complex labour laws and regulations by collaborating with local HR outsourcing providers, assuring compliance, and reducing operational risks.

Outsourcing HR

Benefits of HR Outsourcing in Eritrea

            Access to Technology

  • HR outsourcing in Eritrea ensures you get efficient results. That’s because of the country’s access to the latest and updated technology. The methods of HR services in Eritrea are in-line with the developed countries. That is why businesses find the nation suitable for these services.

            Reduced Administrative Burden

  • Eritrea offers various HR services, including payroll, benefits administration, and documentation. The country allows businesses to streamline their operations and reduce administrative workload.

            Risk Mitigation

  • Partnering with HR experts in Eritrea ensures that businesses are well-informed and equipped to handle labour-related risks. The country is organizing many management activities (8) nationally. Thus, it allows HR service providers to learn different techniques to mitigate business risks.

            Employee Satisfaction

  • A well-managed HR outsourcing partnership can result in improved employee experiences. Luckily, Eritrea can offer this experience, thanks to its highly-skilled workforce. The country’s 20% of the population works in different sectors of industries, making it a lucrative country for talent seekers.

            Global Expansion

  • Outsourcing HR in Eritrea can facilitate the entry process for businesses looking to expand internationally. The country’s 12% GDP growth in 2018 proves that Eritrea attracts business owners. It is increasing different sectors to grow further, making itself a highly profitable nation.

Marketing Outsourcing in Eritrea

Marketing outsourcing in Eritrea can have several advantages for companies looking to increase their market presence and achieve strategic growth.

The following are a few significant benefits of marketing outsourcing in Eritrea:

Outsourcing Marketing

Benefits of Marketing Outsourcing in Eritrea

            Local Expertise

  • Partnering with a local marketing outsourcing provider gives businesses access to in-depth knowledge of Eritrea’s market trends, consumer behaviours, and cultural nuances. This insight is invaluable for crafting marketing strategies that resonate with the local audience.

            Greater efficiency

  • A good marketing strategy can achieve increased efficiency. Luckily, that’s exactly what Eritrea offers. You will utilize your time far more wisely if you give your business and clients your undivided focus.
  • The country has over 5,000 verified marketing agencies. Thus, you can indeed find one that fits your needs!

            Regular communication and support

  • By March 2020, the UNICEF office in Eritrea received a Global Partnership for Education grant of $70,000 to support the Ministry of Education in its response plan, an alternative delivery system, and risk communication. This factor highlights the benefit of government-backed policies in marketing services offered by Eritrean agencies.

            Access to the right technologies

  • Eritrea invests significantly in specialized tools and technologies to provide expert services to clients. The 2002 Eritrean Science and Technology Development Agency (ESTDA) Establishment Proclamation serves as a framework for developing science and technology in Eritrea.

IT Outsourcing in Eritrea

Eritrea presents a desirable environment for outsourcing IT services. Thanks to its qualified labour force and affordable solutions. Businesses can use specific knowledge in software development, network management, and cybersecurity by collaborating with local IT professionals.

According to the 2020 UNICEF Eritrea Country Office Annual Report, the Ministry of Education (MoE) in Eritrea is focused on addressing the digital divide and building capacity at its media education centre.

Outsourcing IT

Benefits of IT Outsourcing in Eritrea

The Government Support

IT outsourcing allows for flexible scaling of resources based on fluctuating demands, providing a cost-effective solution for managing varying workloads and projects. According to The Digital Future of Eritrea program, the government has prioritized digital literacy and technology utilization.

Creative thinking and problem-solving

Working with Eritrean IT professionals can help approach business difficulties from new angles and with inventive problem-solving techniques, promoting innovation and expansion. The country established over 767.5 thousand mobile connections in January 2021.

Social Media Usage

The country has a decent social media user base. It allows them to stay updated with the ever-changing IT industry trends. According to a report, the country gained about 10,000 social media users in January 2023.

Accounting Outsourcing in Eritrea

Businesses can benefit from accounting outsourcing in Eritrea in several ways, allowing them to effectively manage their financial operations and concentrate on their primary business activities.

The following are a few significant advantages of accounting outsourcing in Eritrea:

Outsourcing Accounting

Benefits of Accounting Outsourcing in Eritrea

Global Expansion

Accounting outsourcing offers insights into local financial practices and regulations, streamlining entry into new markets for businesses looking to expand into Eritrea or the broader African market. According to UNCTAD’s World Investment Report 2022, FDI flows to Eritrea amounted to USD 70 million in 2021, slightly down from USD 74 million in 2020

Upscale Your Business

Growing a business takes considerable time and energy, but you can gain all three benefits by outsourcing your accounting service to Eritrea. The country offers a decent salary for an accountant, averaging 68,400 ERN. Seasoned chartered accountants can even earn up to 103,260 ERN. This benefit makes accounting a lucrative profession in Eritrea. As a result, you will find many accountants in the country to outsource your services.

Golden Opportunities for Traders

Eritrea is a lucrative country for traders and foreign investors. The nation has a credit rating of 15.00, while its exports are calculated at $719 million. Hence, outsourcing your accounting services in Eritrea can be very beneficial.

AI Outsourcing in Eritrea

The outsourcing of artificial intelligence (AI) in Eritrea has the potential to result in technological improvements and advantages for organizations. Here are a few possible benefits of outsourcing AI to Eritrea:

Outsourcing AI

Benefits of AI Outsourcing in Eritrea

Strengthen Communication

When businesses outsource AI tasks to Eritrea, they often experience improved communication through cultural compatibility. Eritrea’s recently increased in artificial intelligence, as covered by ISP. The country is now exploring the powers of AI and its integration into different sectors.

Availability of AI talent

Eritrean AI experts have specialized knowledge in machine learning, data analysis, AI programming, and other areas linked to AI, giving firms access to a wide range of expertise.

Eritrea has various AI experts working towards the country’s challenges. The nation aims to produce more AI professionals. As a result, you will see many training and educational programs in Eritrea.


Q: Why consider outsourcing in Eritrea?

A few benefits of outsourcing in Eritrea are cost savings and concentration on core business operations while utilizing outside experience.

Q: How can outsourcing to Eritrea help my business expand globally?

Outsourcing to Eritrea can provide insights into the local market and cultural nuances, enabling businesses to tailor their products and services for global expansion as GDP Annual Growth Rate in Eritrea could reach 2.60 percent by the year end 2023, according to Trading Economics global models.

Q: Is Eritrea politically stable for outsourcing operations?

The Politics of Eritrea and the Government of Eritrea take place in a single-party presidential republican totalitarian dictatorship. The President officially serves as both head of state and head of government.


In conclusion, outsourcing in Eritrea offers a distinctive range of possibilities that can be used for the benefit of both parties. Due to the labour force’s low cost and the nation’s advantageous geographic location, firms can streamline operations and gain access to new markets.

Also, companies can advance the country’s economic progress by working with Eritrea on outsourcing projects. This cooperation may transfer skills, knowledge, and technology, promoting a more varied and robust economy.

The Government of the State of Eritrea (GSE) maintains a command economy, with government activities predominating over private enterprise.

Find more resources about outsourcing:

Outsourcing Human Resources

Outsourcing Marketing

Outsourcing Information Technology

Outsourcing Accounting

Outsourcing Artificial Intelligence

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