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The Eritrean context has been defined by conflict and uncertainty. Following a 30-year liberation struggle, which destroyed much of the economy and the infrastructure, Eritrea achieved its independence in 1991 and became formally independent from Ethiopia in 1993. In 1998, armed conflict broke out again with Ethiopia, killing an estimated 70,000 people and displacing one-third of the Eritrean population. Despite the peace accord in 2000 the relations with Ethiopia remain unresolved and Eritrea is also on bad terms with two other neighbours: Sudan (by supporting the opposition forces to the government) and the Yemen (with which it has territorial disputes). As a result the country remains on a war footing which means that Government attention is focussed away from other urgent domestic matters and development challenges. The Eritrean constitution is drafted but has not been ratified and many Government policies remain in draft. There are still some 58,000 IDPs who cannot return home because of mining, devastation of villages and the delay in border demarcation. In addition, the demobilisation process is happening but very slowly because of the uncertainty. The current situation in Eritrea could be described as one of "no-war and no-peace".

Trade and marketing opportunities are depressed and agricultural production is constrained by labour shortages due to the scale of conscription and to recent low rainfall. Even in good years the country only produces 50 per cent of its grain needs. Access to food is through cash - even in rural areas about 82 per cent of food is purchased. Political space for civil action is very tight although it has got a decentralisation policy with a bottom up system of governance mixed with traditional structures. HIV/Aids infection rate is reaching alarming rates.

 

ACORD has operated continuously in Eritrea since independence in 1993. Of the three ACORD intervention zones in Eritrea, Anseba Zoba is one of the poorest in the country and hardest hit by the recent drought. Debub Zone has suffered directly from the war and its impact and Central Zone has the highest inequality of wealth in Eritrea.

 

Overall vision and objective

The overall vision for the Eritrea Area Programme is an independent, united and developed Eritrean Society, where all citizens help each other to enjoy equal rights and fulfill their responsibilities.

 

The objectives for the five-year strategy 2005-2009 are as follows:

  • Strengthen the capacity of village/community-based organisations to provide appropriate social services to their communities and facilitate their participation in local development and governance
  • Enhance the implementation capacity of local government authorities
  • Enhance the socio-economic empowerment of women and increased participation in decision-making
  • Prevent transmission and mitigate social and economic impact of HIV/AIDS pandemic by building the capacity of village/community-based organisations and other civil society structures to promote information and counselling to all members of the community.
  • Expand the capacity/outreach of existing financial services and increase the income of poor people, especially in Southern, Central and Anseba zones, as a means of poverty reduction, food security, and safeguarding and diversifying livelihoods.
  • Establish a community-managed resource centre for training and dissemination of information distilled from research on community development issues
  • Conduct informative research that will contribute to evidence-based dialogue in local, regional and national collaborations

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Thematic focus

Livelihoods: The thematic focus of ACORD Eritrea is on livelihoods with a particular emphasis on micro finance to promote poverty reduction and food security. Working closely with the Ministry of Finance and local administrations, ACORD will promote the continued development of local community microfinance organisations in the three zones (Southern, Central and Anseba) and support similar developments in the other zones through facilitation rather than being directly operational. More attention will be paid to the impact of climate change and of using credit to support activities on the environment. In particular, water appears to becoming scarce both as a result of low rainfall being unable to replenish water tables and of the increased extraction of water as a result of loans for wells, etc.


ACORD's micro-finance scheme currently has over 30,000 active clients regrouped in 31 village banks in 6 districts. This micro-credit scheme is accompanied by a package on capacity building that is delivered in a resource training center where issues of business management, gender, social exclusion, participation, leadership and social animation, HIV/aids sensitization on stigma and discrimination are addressed. Training in the management of micro-finance, in particular, has had the subsidiary impact of strengthening village organisational capacity in general. ACORD also is lobbying the government to invest in financing micro-finance as tools for food security in very high cash economy even at community level. The program also is linking CBOs and village banks to government and service providers like insurance and others. Currently, ACORD is developing and providing a range of credit products including savings accounts and loan insurance schemes.

 

Gender: Women receive 45 per cent of all loans in a situation where men own most assets and manage most enterprises - albeit that mobilisation has reduced the amount of male presence in many households.

 

HIV & AIDS: As the death toll of the AIDS pandemic hit the rural areas; ACORD introduced life insurance to cover the period of a loan, so that if a client dies during the period of the loan the whole amount of the loan plus interest is repaid to his/her family after the deduction of any outstanding repayments is made. A new loan is offered immediately if someone in the family wishes to take over the existing business. The insurance covers all causes of death. There are various types of microfinance products being introduced, such as livestock insurance, mobilisation of non-member savings, etc. ACORD is now offering loans to households who are nursing people with AIDS.

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Who we work with

ACORD works with village banks and community based organizations, local government, regional administration as well as key Government ministries.

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HDI Rank: 161 of 177 countries (0.444)
Life Expectancy: 53.8 years
Combined enrolment ratio: 35%
GDP per capita (PPP, USD): 849
ACORD Strategic Period: 2005-2009
Programme Manager: Hasebenebi Kafel


 

 

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ACORD ERITREA
BP 5538, No. 16, Street 720
Sub Zoba D2, Asmara, Eritrea
Tel:+291 1 184 272, +291 1 182 121
Email:acord@gemel.com.er
Programme Coordinator: Hasebenebi Kaffel

 

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