AFRICAN DEVELOPMENT BANK GROUP ERITREA

Dec 31, 2016 - achieve inclusive growth and building ... enhance skills development and build resilience ..... cost of logistics to country competitiveness and.
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AFRICAN DEVELOPMENT BANK GROUP

ERITREA

INTERIM COUNTRY STRATEGY PAPER (I-CSP) 2014-2016

EARC September 2014

TABLE OF CONTENTS FINANCIAL YEAR ACRONYMS AND ABBREVIATIONS EXECUTIVE SUMMARY

i ii iii

1.

INTRODUCTION

1

2. 2.1 2.2 2.3.

COUNTRY CONTEXT AND PROSPECTS Political and Social Context Economic Context Social and Cross-Cutting Issues

1 1 2 8

3.

STRATEGIC OPTIONS

10

3. 1 3.2. 3.3 3.4 3.5

Country Strategic Framework Aid Coordination, Alignment and Harmonization Strengths and Opportunities; Challenges and Constraints Country Portfolio Performance Review and Bank Positioning Results and Lessons from the Implementation of the 2009-2011 I-CSP

10 11 11 12 14

4.

BANK GROUP STRATEGY

14

4.1. 4.2 4.4 4.5 4.6

Rationale and Strategic Selectivity Bank’s Indicative Resource Envelope Monitoring and Evaluation Country Dialogue Potential Risks and Mitigation Measures

14 16 18 18 19

5.

CONCLUSIONS AND RECOMMENDATION

20

Annex I (A): I-CSP Results-Based Framework for Eritrea (2014-2016) Annex I (B): Bank’s On-going Operations and Performance Indicators. Annex I (C): History of Bank Group Operations (31 March 2014) Annex II: Selected Macroeconomic Indicators for Eritrea Annex III: Progress -Toward Achieving the Millennium Development Goals Annex IV: Comparative Socio-Economic Indicators Annex V: Progress towards Achieving the MDGS Annex VI: Country Portfolio Performance Improvement Plan (CPIP) 2013 Annex VII: CPIA Ratings 2009-2011 (0-5) Annex VIII: Eritrea Estimated Mineral Resources Potential and Output Annex IX: Matrix of Development Partners Coordination Annex X: World Bank Ranking of Eritrea on Indicators for Business Development (2012) Annex XI: World Bank Ranking on Ease of Doing Business (2012) Annex XII: Summary of Bank Group Intervention within the Human Resources Development Sector Annex XIII: Doing Business in 2011 and 2012 (Rank) Annex XIV: Consultations with Stakeholders Annex XV: Logistics Performance Index for Selected Countries 2012 Annex XVI: Map of Eritrea Annex XVII: References

I I I II III IV V VI VIII IX X XI XI XII XIV XV XVI XVII XVIII

CURRENCY EQUIVALENTS National Currency 1 UA 1 UA 1 US$

= = = =

Eritrean Nakfa (ERN) 23.14 ERN 1.51 US$ 15.38 ERN

WEIGHTS AND MEASURES Metric System 1 Kilogramme (kg) = 2.2 pounds (lbs) 1 metric tonne (MT) = 2,205 lbs

FINANCIAL YEAR January to December

i

ADB ADF APPR ASDP ASYCUDA AWF BOP BWIs CEDAW COMESA CPIA CPI CPPR CSP CSOs DPs EEBC EITI ERP ESDP ESW FDI FSS GBV GDP GEF GSP HIPC ICSP IGAD IMF IPRSP IRDP MDGs MDRI M&E NGAP NGO NICE NPG NPV PAR PFDJ PFM RBCSP RWSSI UA UN

ACRONYMS AND ABBREVIATIONS African Development Bank African Development Fund Annual Portfolio Performance Review Agricultural Sector Development Programme Automated System for Customs Data African Water Facility Balance of Payment Bretton Woods Institutions Convention on Elimination of All Forms of Discrimination-Against Women Common Market for Eastern and Southern Africa Country Policy and Institutional Assessment Consumer Price Index Country Portfolio Performance Review Country Strategy Paper Civil Society Organizations Development Partners Ethiopia-Eritrea Border Commission Extractive Industries Transparency Initiative Emergency Reconstruction Programme Education Support Development Plan Economic Sector Work Foreign Direct Investment Food Security Strategy Gender Based Violence Gross Domestic Product Global Environment Fund Generalized System of Preferences Highly Indebted Poor Countries Interim Country Strategy Paper Inter-Governmental Authority on Development International Monetary Fund Interim Poverty Reduction Strategy Paper Integrated Rural Development