This article examines The Digital Economy and Economic Transformation in Africa: Opportunities and Risks: Theoretical Framework and Empirical Analysis with a focused emphasis on Eritrea within the field of Business. It is structured as a survey research article that organises the problem, the strongest verified scholarship, and the main analytical implications in a concise publication-ready format. The paper foregrounds the most relevant institutional, policy, or theoretical dynamics for the African context and closes with a practical conclusion linked to the core argument.