United States weighs lifting sanctions on Eritrea
In early 2024 the Biden administration signaled a possible shift in its policy toward Eritrea, hinting that long‑standing sanctions on senior officials could be eased. The move comes as Washington seeks to deepen economic and strategic ties with the Red Sea nation, which sits at a crossroads of critical mineral wealth and maritime chokepoints.
Background: sanctions and human‑rights concerns
The United States first imposed targeted sanctions on Eritrean officials in September 2021, citing “widespread violence, atrocities and serious human rights violations” during the 2020‑22 Tigray conflict. Reuters reported that the sanctions targeted members of the ruling Popular Front for Democracy and Justice (PFDJ) and senior military leaders.
Human‑rights groups have long accused the Eritrean government of:
- Indefinite national service that conscripts men and unmarried women into military or civil work;
- Systematic suppression of freedom of expression and the press;
- Arbitrary detention of perceived critics, journalists, and religious minorities.
A 2022 UN Human Rights Council report documented allegations that Eritrean forces participated in mass executions and abductions of Eritrean refugees in the Tigray theater. UN OHCHR noted “credible evidence of extrajudicial killings and enforced disappearances.”
Why Washington is reconsidering the sanctions
Critical mineral potential
Eritrea’s geology offers substantial untapped resources. The country lies on the Arabian‑Nubian Shield, a geological formation known for copper, zinc, nickel, gold, silver and rare‑earth elements. According to the U.S. Geological Survey, proven reserves include:
- ≈ 1.2 million tonnes of copper ore;
- ≈ 800 kt of zinc;
- ≈ 150 kt of nickel.
Offshore, the Red Sea basin adjacent to Eritrea is estimated to hold significant hydrocarbon potential, though exploration remains limited due to regulatory and infrastructural constraints.
Foreign investment in mining has been dominated by Chinese firms. In 2019, Zijin Mining acquired a controlling stake in Nevsun Resources’ Bisha mine for US$1.4 billion, later expanding production to copper and zinc. A subsequent settlement resolved allegations of forced labor at the site. Mining.com highlighted the deal as a marker of China’s growing influence in the sector.
Louis Mazel, former U.S. mission chief in Asmara (2014‑2016), told African Business that Eritrea’s leadership is keen to diversify its investor base: “The government does not want China to be the sole partner in its minerals sector; it would welcome U.S. companies to break any monopoly.”
Geopolitical significance of Eritrea’s location
Beyond minerals, Eritrea’s coastline places it at a strategic juncture. The Bab el‑Mandeb Strait, which separates the Horn of Africa from the Arabian Peninsula, is roughly 20 km wide at its narrowest point between Eritrea and Yemen. Control of this waterway affects roughly 10 % of global trade that passes through the Suez Canal.
The Houthi movement, aligned with Iran and designated a terrorist organization by the United States, has repeatedly threatened to disrupt shipping in the strait. In late 2023, Houthi missile attacks forced several commercial vessels to reroute, raising insurance premiums and prompting NATO to increase naval patrols. BBC News noted that a stable Eritrean government could serve as a partner for maritime security initiatives.
Outlook and considerations
Any decision to lift sanctions will likely be conditioned on verifiable improvements in human‑rights practices, transparent mining contracts, and commitments to regional stability. The State Department’s internal memo seen by Reuters in May 2024 suggested a review is underway, though no timeline has been publicly announced.
For investors, the key factors remain:
- Currency convertibility – the Eritrean nakfa’s non‑convertible status complicates profit repatriation;
- Infrastructure – limited power, transport, and port facilities increase operational risk;
- Governance – assurances of labor rights and environmental safeguards will be critical to meet ESG expectations.
As the United States recalibrates its Africa strategy, Eritrea illustrates the tension between pursuing economic opportunities and upholding democratic values. The coming months will reveal whether Washington can secure a partnership that advances both interests.
