Eritrea, All Areas

Overview

Eritrea, All Areas Eritrea is in Eastern Africa, bordering the Red Sea, between Djibouti and Sudan. The climate is desert, hot and dry along the Red Sea coast but cooler and wetter in the central highlands, and semi arid in western hills and lowlands.

English and Italian are widely spoken among the business community. Tigrinya is the main local language, though Arabic, Afar, Bilen, Hedareb, Kunama, Naro and Saho are also spoken. The main religions are Islam and Christianity.

The economy of Eritrea is largely based on subsistence agriculture, with 80% of the population involved in farming and herding. Drought has often created difficulty in the farming areas.

Business culture is similar to that of Western Europe and North America. Expatriate business dress comprises suits for official meetings, otherwise a shirt and tie is appropriate for men. For women modest dress to avoid offending Muslim sensibilities is required.

The security risk for expatriates in Eritrea is medium, but high on the borders with Ethiopia, Sudan and Djibouti. Risks include petty crime throughout, and military raids and landmines in the border regions.

The currency of Eritrea is the Nakfa (ERN). Nakfa are not convertible outside Eritrea and requires the original currency transaction receipt. Eritrea is a cash based economy. There are no credit card or ATMs facilities. Most hotels in Eritrea require payment in US Dollars, however it is illegal to use foreign currency for purchases outside of officially-recognised hotels.

Medical facilities are limited. Serious or complex medical treatment may require evacuation which can be expensive.

The population of Eritrea is 5 Million (2018 est.), while the inflation rate (CPI) is 9% for Eritrea as at December 2017.

Xpatulator Hypothetical Tax for Eritrea is based on the current personal income tax rates which are progressive up to 30%.

Cost Of Living

The cost of living for expatriates / professional migrants in Eritrea as at 1 January 2019 is high in comparison to other places in the world.

In Eritrea, the cost of each basket, based on local prices, compared to the international average, is categorized follows (Exact cost of living percentages only available in personalised reports):
1) Alcohol (where available) & Tobacco: Low
2) Clothing: Low
3) Communication: Low
4) Education: Very High
5) Furniture & Appliances: Very High
6) Groceries: Very High
7) Healthcare: Average
8) Household Accommodation: Very Low
9) Miscellaneous: Very High
10) Personal Care: Very High
11) Recreation & Culture: Very High
12) Restaurants Meals Out and Hotels: High
13) Transport: Very High

Eritrea is for example 35.3% more expensive than USA for groceries, -68.7% cheaper for household costs than UK, and 198.9% more expensive for transport costs than India.

Eritrea is ranked as a extreme hardship location.

The hardship premium for Eritrea for an expat from Australia, is for example 30%, i.e. host location (Eritrea) premium of 40% minus home (Australia) location premium of 10%.

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The cost of living for expatriates / professional migrants in Eritrea as at 1 January 2019 is high in comparison to other places in the world.

Eritrea is ranked as a extreme hardship location.