Abstract
In a context of structural changes of global economic development, the export processing zones have become a truly widespread phenomenon for several decades. As a policy tools and strategic measures, EPZs have a great impact on the economy and structural reforms of developing These are selected areas in a country that will attract foreign investment to create jobs, expand the industrial base, introduce technology as well as create backward linkages between the zones and the domestic economy.Thus, the establishment of an EPZ can be a valid strategy for Eritrea to promote its sustainable economic development. With its strategic location, its natural resources and attractive incentive pachage the country has the potential to be a gateway for trade and investment in Africa, as evidenced by its past performance. However, as EPZs are an established concept that already exists in other countries, the Massawa EPZ (as well as the EPZ in Assab) will have to show its forefeet to be competitive.