ONEritrea

a blog on Eritrea. Straight to the point. The Good, The Bad, The Ugly, The Beautiful. Fact findingnand searching for real stories.

[oneritrea-blog]

EriTel Shares: buy?

EriTel, the Eritrean public company, is selling shares. That seems actually good news. Allthough several sources claim it as privatization, this is not correct. Privatization is when the majority of the stocks are hold by private entities.

So what is it actually you're buying? 50 dollar for 1 EriTel share. As an investor you need to know on what bases the share price is calculated. Normally a share price reflects the worth of the company. In EriTel's case we don't know, because EriTel doesn't include any financial reports. International standards require a prospectus with all detail information on the company. Plus regulations on voting rights, dividend payments and trading conditions. This is also lacking.

The Eritrean government as issued bonds between 1998- 2000. These bonds were issued under the same circumstances. The bonds have never been returned and no interest has been paid. The bonds can still be used as a deposit for building houses. The government has not yet published any information on repaying the debts to mainly eritrean diaspora.

Conclusion: Although the initiative can be applauded. The selling of shares comes across as unprofessional, not transparent and the price seems to be calculated from thin air. Financially it is has nothing with investment, because it merely doesn't meet any basic requirements to be considered as a "share". If you want to buy shares, consider it as aid but not as an investment.

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[oneritrea-blog]

Eritrean Media: the Lay out pt. 1

For people who are starting to find out there is more under the surface. Here is a short lay out of the media organization of the government and the pro-government movement. The next time we'll bring a lay out of the opposition movement.

The current ruling party, PFDJ (People's Front for Democracy and Justice) has an extensive network of media outlet. The government has official channels like TV, radio and their main website (shabait.org). There are are several government affiliated websites. The governement has also (beside government officials) some spokespersons. Sophia Tesfamariam, resides in the US, and is known for her ferocious posts and articles. Thomas C. Mountain is an American citizen, living in Hawaii, who somehow got involved and is extremely pro-government. The opposition claims that both spokespersons are paid lobbyists.

The interesting part is the facebook network of individuals spreading continious positive messages. It doesn't mean that the information is not correct. It is merely biased and it never asks questions. The communication of the pro-goverment base can be devidid into 3 types.

1. Nostalgia: pictures, video's about the armed independence struggle. The pro-government movement tends to romanticize the independence struggle and still claims the victory as their greatest achievement, thus legitimation of their power (we brought independence, so we're the rightfully rulers)

2. Positive news: about roads, schools, graduations and succes that can be accredited to the government. Normally supported with credo's like "nikit teray","awet n'hafash", "ane ne'hagery", "hade libi, hade hizbi"

3. Bashing: primarily bashing of western "mainstream media" as the supporters call it. Plus vigorously reacting on anti-government posts. mainly calling the posters, woyane, ethiopia supporting or western-sponsored.

So now you know. Keep it in mind, that real fact finding is all about using several sources and weighting interests and political ties. Make up your own mind.

[oneritrea-blog]

What's the deal: Water shortage in Asmara

Asmara is an old city with an old water/ sewer infrastructure. In the 50s it was very progressive, since a lot of African cities did not have a proper sewer system. But now it is old and outdated.

With the water shortage there is also a failing electric system. Same story. Eritrea build a modern electricity plant, but it was bombed during the war with Ethiopia (1998-2002).

BUT: hold on. the interesting part of this crisis, is the news brought by Eri-TV. for the first time in history, Eri-TV actually brought something crtical. Eri-TV normally only brings harvest, road-building and government meetings news. So this was the first real journalistic report. Anyways. Good development. But after this report nothing likewise has been broadcasted.

[oneritrea-blog]

Good news (?): Eritrea's GDP growth 8,2%

Eritrea's GDP (Gross Domestic Product) is one of the highest in the world. That's a good thing...right? GDP is a measure for a country's economic development. true. 

But...GDP is useless without inflation rate. When you have 1 dollar and you create 0,12c, it is an increase of 12%. but if your dollar has devaluated with 13%. you are still very poor and your increase is negative. Especially if your neighbor have an average of 100dollars.

That's the same deal with Eritrea. Eritrea is nr. 160 on the GDP list. Eritrea has a GDP of 2,6bln USD, an average poor African country as 10bln USD. Ethiopia (nr. 89) for example has 30bln USD. So when you're at the bottom an increase (because of beneficial rainfall and the goldmines) is quickly made.

The Gold export became 15% of the total export (from 0% - to 15% in a couple of years)

Eritrea's inflation is 13% and the currency NAKFA is artificially held up by the government. On the street the NAKFA is being traded for 1:50 (1 euro for 50 nakfa), while the official exchange rate is 1:30. 

Conclusion: The GDP growth is promising, but compared with the inflation rate actually useless. Eritrea's growth is primarily because of the new booming goldmining. So relatively positive news, but not to be exaggerated.

[oneritrea-blog]

Rumor check: Where is Ali Abdu?

The big dollar question these days is "where is Minister of Information, Ali Abdu Ahmed"? Ali Abdu was the former head of the NUEYS (National Union of Eritrean Youth and Students, now headed by Sultan Said) and became the prodigal son and possible successor of Issayas Afeworki. Formed Eri-TV into a successful media organisation with good entertainment but also sharp propaganda.

His dissapereance was first noticed by Assena.com in november. He was not present during the last cabinet meeting and asked asylum in Canada, where is his wife and childeren reside.

This news was soon picked up by newsagencies all over the world. The news was argued by government supporting madote.com.

Although the news is denied and put aside as ridiculious, the minister of information has not published any comment ever since the rumour started end of november. Plus according to Awate.com his near relatives are captured.

Who to believe? Where there is smoke, there is fire. Ali Abdu is not the first official to defect.

Verdict rumor: probably TRUE.