Asmara, estimated population 400,000 (1996), is the capital of Eritrea. Textiles and clothing, processed meat, beer, shoes, and ceramics are the major industrial products. Asmara was a small village until the 1880s, when it became an Ethiopian regional administrative center. It became the capital of the Italian colony of Eritrea in 1900. In the late 1930s the Italians changed the face of the town, with a new structure and new buildings; Asmara was called "Piccola Roma" (Little Rome). Nowadays the major part of buildings are of Italian origin, and shops still have Italian names (Bar Vittoria, Pasticceria moderna, Casa del formaggio, Ferramenta, etc...).

During the Eritrean war for independence from Ethiopia, Asmara's airport became key in the conflict, and it was used by the Eritreans to obtain arms and supplies from outside supporters. The city was liberated by the Eritrean People's Liberation Front (EPLF) on May 24th, 1991, and became a part of Eritrea when the country gained its independence (1993).