The history of Eritrea was closely linked to the history of Ethiopia throughout the period of Italian colonisation (1899-1941). Following this period, the nation became a British trustee until 1952 when the country was federated with Ethiopia in what was declared a “united autonomy”.
In 1962, it was annexed by the Ethiopian government which led to long a war for independence led by the FPL (Popular Liberation Front). On 24 May 1993, after a referendum, Eritrea declared independence. However, the lack of agreement on the position of the border led to war in 1998-2000. A peace treaty was signed in Algiers on 12 December 2000 and a UN peace mission was deployed on the border, later withdrawn in 2008; the crisis was resolved in 2018, with the signing of an agreement in Jeddah (16 September). Political life is dominated by the EPDJ (The People’s Front for Democracy and Justice, heir to the FPL), which has abandoned the Marxist ideals of the original party to establish an authoritarian and personal regime. The Constitution of 1997, which calls for a head of state and an elected parliament, has not been enacted. A National Assembly has formally been in existence since 1992, but in reality all powers, including those of the judiciary, are in the hands of the President.

Agriculture is mostly for local consumption (cereals, potatoes and pulses); nomadic livestock (sheep, goats and camels) and fishing (with fish processing plants in Massawa and Assab), are also relevant. Shortfalls in food supply (caused by frequent droughts), are covered by international aid. Silver, gold, copper and zinc are extracted from the Bisha mine; the Colluli mine (Afar region) exploits a vast deposit of potash. A fairly significant amount of salt is also extracted at Massawa and Assab. There are petrochemical plants (Assab), mechanical and food processing plants (Asmara), textile and tanning factories (Debarwa), cement works (Massawa) as well as paper and tobacco factories. Since 2008, a free-trade zone has been operating in the port of Massawa.

The railway lines built by the Italians (1897-1911) have in part been re-established, linking the port of Massawa to Asmara.