Sovereignty on Eritrea’s wealth and resources (iii) 249. Since the late 40s, Eritrea was very much known for its SMEs and cottage industries. This was completely shattered by successive colonial policies and hostilities. Even the promising post-independence domestic private initiatives were also curtailed by the border war, the protracted hostilities and the prevailing objective situation. Nevertheless, the recent priority is to focus on the success of the strategic intervention of the Warsay Yikealo Development Campaign and redouble the efforts and the modest economic growth registered in the last decade. In this regard, the established trade and investment proclamations and procedures have been implemented within the limits and constraints of the prevailing situation and deserve more attention. 250. The government has focused on promoting domestic investment and capital as a means of creating national capacity. However, in consideration of the prevailing hostile situation and development, the government has also played a proactive role and invested in critical sectors. This includes agro-industrial processing, economic infrastructure, construction industry, targeted manufacturing geared towards import substitution and mining. The effort is small but promising and has ascertained Eritrea‟s potential. 251. Since independence various factories and economic establishments nationalized by the colonial Ethiopian Military Government in Eritrea were also privatized in accordance to Proclamation No 83/1995 (updated under Proclamation 114/2001) to boost domestic investment and capital formation. Furthermore, several economic establishments and factories have also been privatized by selling shares in a three-tier arrangement. In this arrangement, the Government acquired a third part, 1/3 shares bought by the Government for the benefit of the Martyr‟s Trust Fund and the remaining 1/3 shares sold to individual Eritrean buyers. Further study is going on to expand this experience. 252. The investment policy declared in Proclamation 59/1994 is also liberal and has encouraged foreign direct investment (FDI). This has been in relation to the need in the transfer of capital and technology and creation of employment. One of the main challenges in this effort is the limitation in energy and infrastructure and these have been taken as the main targets during the last 18 years. Futile conspiracies to sabotage economic growth and block the flow of investment to the desired level have also continued as part of the broader hostilities against the country. Nevertheless, investment is flowing but more is needed to raise its share and contribution in sustainable economic growth of the nation. 253. Foreign direct investment has particularly gained momentum in the mining sector. As per the mining Proclamation No 68/1995, Eritrea follows a prudent policy on the exploitation of natural resources and the extractive industry. This is related to the viable future of the nation and hence much effort has been made to integrate it into the national economy and reinvest the dividends accordingly. About 23 companies have so far been involved in the sector and two are already at the production level and more are ready to be operational in the next one Page 62 of 100