Eritrea Online / Dehai Homepage
1. Eritrean Minister of Finance Mr. Gebresellasie Yosief said yesterday that Eritrea's gross domestic product has increased by 8% in 1998. Speaking in a nationally televised interview, the minister pointed out that while the GDP has shown an increase, prices have remained stable and inflation is holding at 4%. These figures have also been confirmed in a recent report by the International Monetary Fund.
The minister explained that a balanced distribution of resources in all sectors of the economy, services and living standards had been ensured and that employment opportunities are on the rise. The government's current focus on the development of agricultural and marine resources has had positive results, the minister said. The minister stated that Eritrea's transparent policies and an administration virtually absent of corruption has attracted many foreign and domestic investors. The minister also pointed out that the nakfa remains stable following a balance in the supply and demand of foreign exchange.
2. The Dahlak Hotel in Massawa has been bought by Mr. Prima Giovanni, an Eritrean residing in Italy. The hotel, which currently has 56 bedrooms, a restaurant and a bar, has been sold in accordance with the government's policy regarding the sale of government holdings to the private sector.
Giovanni says he plans to invest 70 million nakfa on further extensions of the hotel. These extensions include the construction of 120 bedrooms, a large conference hall, a modern swimming pool, a wharf, three national and international restaurants, and bars. The hotel will also have centers for entertainment and water sports. Giovanni said the Eritrea has a good tourist market from which the four-star hotel will draw. Construction on the hotel extension is expected to begin in January 1999 and will be completed by the year 2000.
3. The Eritrean government, in a joint venture with Kaengnam, a Korean enterprise, has agreed to set up a modern cement factory worth US $50 million in Eritrea. The agreement was signed by the Eritrean Minister of Finance, Gebresellasie Yosief, and the president of Kaengnam, Mr. Hack Yung Kim. The factory will have the capacity to produce 400,000 tons of cement per year.
Veronica Rentmeesters, Information Officer
Embassy of Eritrea to the US
1708 New Hampshire Ave NW, Washington DC 20009, USA TEL: 202 588 7587 FAX: 202 319 1304
E-M: veronicX@embassyeritrea.org