However war between Eritrea and Ethiopia erupted once more in 1998 over disputed borders. The matter was settled in principle on 12th December 2000 when the governments of Ethiopia and Eritrea concluded the Algiers Agreement which terminated military hostilities. However conflict flared again over the area of Badme when was resolved in 2018 when Ethiopia ceded the territory to Eritrea following a summit that led to the resumption of diplomatic relations.

Today Eritrea, despite its rich past, is an impoverished nation, with around 80% of its 3.684 million (2022) reliant upon subsistence farming. Natural events have also played their role in preventing the country from development, with poor rainfalls affecting harvests to the point where the country is unable to grow enough foods to meet its populations needs. Abject poverty, drought, famine and instability are the conditions into which children in Eritrea are born.

Despite this there has been some progress in Eritrea. Some 40,000 orphans have been placed back within their extended families from institutionalised orphanages. Eight thousand disabled children have left institutions to be cared for at home whilst a further 3,500 children have been integrated into mainstream schools. Over 16,000 street children have been brought within the educational framework and the deaths rates of children from malnutrition have halved in recent years. However Eritrea remains one of the world's least developed countries and is in 175th place out of 191 countries and territories in 2021 when ranked in terms of life expectancy, literacy, access to knowledge and the living standards of a country.