Currently there is no bilateral envelope for Eritrea. The EUDEL to Eritrea is managing 28 contracts funded through thematic instruments (Civil Society Organisations, Human Rights & Democracy) and Regional Technical Cooperation Facility. (TCF). The total value of the portfolio is around MEUR 12.

Sector wise, the projects can be grouped as follows;

a) Social Protection and Health 15 contracts (grants) are on-going for a value of around MEUR 4,6. Contracts are awarded through call for Proposal and 1 Contribution Agreement (CA) with UNICEF. Grants are implemented by local Civil Society Organisations which collaborate with International Non Governmental Organisation.

The CA with UNICEF address two harmful practises in remote areas: the Female Genital Mutilation (FGM) and Under Age Marriage (UAM). Project started in January 2024 and will be completed in December 2026 for an amount of EUR 550,000 The activities of the 15 grant contracts focus on supporting people with disabilities, and children, women and youth, with an aim to enhance the social services delivery to the vulnerable categories. Women empowerment is an important component of all on-going projects. The contracts duration goes from 01/01/2019 until 31/07/2028.

b) Agriculture and food protection: 4 contracts are ongoing, 1 under the global DESIRA (Development Smart innovation through Research in Agriculture/ Dairy value chain in Eritrea) initiative and two under the CSO thematic budget line. The value of the three on-going contracts is around MEUR 5,8. The three grants are implemented by one Irish research Institute and one local CSO. The contracts duration extends from 01/01/2019 to 31/01/2028.

Project activities are targeting the Climate Smart Agricultural Research and Innovation Support for Dairy Value Chains, and improving the food security in Eritrea.

c) Cultural Heritage: 3 contracts are on-going, funded under the CSO thematic budget line; total value of the contracts is around EUR 900,000. Projects are implemented by an Italian University and by Asmara Heritage Project (AHP).

The project activities are aimed at building capacity for safeguarding Asmara's historic urban environment and digitally preserving Eritrea’s cultural heritage.

• Public diplomacy: under the Regional TCF, 5 service contracts for a total value of around EUR 210,000 are being implemented. Project are aimed at preparing a document about the history of the European Union in Eritrea, feasibility studies in the health sector and training courses to Civil Society Organisations staff on contract management. Projects duration extends from 19/06/2023 to 04/01/2025

Relations between Eritrea and the European Union go back to the first years of Eritrean independence. The European Commission opened its delegation in Asmara in 1995, one of the first diplomatic missions to be established. Throughout the last 28 years, the EU has actively worked in cooperation with Eritrean authorities to improve the livelihoods of the Eritrean people. During this period, the EU has been advocating for the promotion of dialogue between Eritrea and its neighbours, as well as supporting Eritrea’s integration into regional institutions.

The EU’s relationship with Eritrea is based on the Cotonou Agreement, which provides for a development partnership and a political dialogue with most countries of Africa as well as the Caribbean and Pacific regions ("ACP countries"). Regular political dialogue in line with Article 8 of this agreement is important to exchange information and to develop or deepen cooperation on specific issues. In this context, the EU and Member States representatives accredited to Eritrea have regularly discussed political issues of mutual interest, notably human rights and migration.

The EU–Horn of Africa Migration Route Initiative ("Khartoum Process"), launched in 2014 during the Rome ministerial conference, started cooperation on migration between the EU and the countries of origin and transit of migrants from eastern and northeastern Africa. In close cooperation with regional and international organizations, especially the African Union and the United Nations, the EU is seeking to foster further regional integration and regional cooperation to address the challenges of irregular migration, as well as other issues of common concern. The Government of the State of Eritrea has actively participated in all international meetings of the Khartoum process.

In 2011, the EU appointed a Special Representative for the Horn of Africa whose task is to actively contribute to regional and international efforts to achieve lasting peace and security in the region.

Eritrea is classified as a Least Developed Country (LDC) under the list established by the Committee for Development Policy (CDP) of the UN Economic and Social Council (ECOSOC). Eritrea's economy  suffered serious setbacks, which the country is currently trying to address.  Reasonable estimates indicate that Eritrea's economy is largely based on agriculture, including a significant portion of subsistence agriculture, a rapidly developing mining sector with large-scale foreign investments, and a small manufacturing sector. Mining, fisheries, agro-processing, and tourism are sectors with considerable untapped potential.

Eritrea belongs to various regional trading blocs including the Common Market for Eastern and Southern Africa (COMESA), the Community of Sahel-Saharan States (CEN-SAD), and the Inter-governmental Authority on Development (IGAD). Eritrea is currently not a member of the World Trade Organisation (WTO).

Suffering from limited rainfall and recurrent drought, Eritrean society has made tremendous efforts in terms of soil preservation (terracing and afforestation) and water harvesting, but it still has to import every year part of its food requirements, which puts significant strain on the foreign exchange reserves of the Government.

As regards Eritrea-EU development cooperation, the European Development Fund (EDF) used to be the main EU instrument for development cooperation with ACP countries, including Eritrea. Currently, there is no established cooperation programme between the European Union and Eritrea.