Ethiopia wants to make the re-opening of two roads connecting it to two of Eritrea’s Red Sea ports a priority in the two nations’ reconciliation process, a government spokesman said on Wednesday 11 July.

In a move that ended a 20-year military stand-off, the Horn of African neighbours agreed on Monday to open embassies, develop ports and resume flights.

The historic reconciliation could transform politics and security in the volatile Horn region, which lies along one of the world’s busiest shipping routes.

Ethiopian government spokesman Ahmed Shide said on Wednesday that the reopening of two critical roads leading to the ports of Assab in Eritrea’s south and Massawa in the north would benefit the whole region.

“The unfolding developments will not only benefit our peoples, but the entire Horn of Africa region will be a part of these developments,” Shide was quoted as saying in an interview published on the Eritrean information ministry’s website.

Ethiopian Prime Minister Abiy Ahmed’s chief of staff wrote on Twitter that Ethiopian and Eritrean passport holders would be able to travel to the other country and obtain visas on arrival.

The changes are sweeping away years of hostility and raising hopes in both countries for a lucrative peace dividend.

Access to the ports of Assab and Massawa could greatly help Ethiopia’s push to boost their exports and increase hard currency earnings, analysts say.

The leaders of Ethiopia and Eritrea signed a “Joint declaration of peace and friendship” on Monday 9 July, a day after a historic summit marked a start to normalisation of ties between the former foes.

“The state of war between Ethiopia and Eritrea has come to an end,” the leaders said in a joint declaration. “A new era of peace and friendship has been opened.”

The Agreement, which specifies five pillars, was signed this morning at State House by President Isaias Afwerki and Prime Minister Abiy Ahmed.

The Joint Declaration states, inter alia, that:

i) The State of war that existed between the two countries has come to an end. A new era of peace and friendship has been ushered;

ii) Both countries will work to promote close cooperation in political, economic, social, cultural and security areas.

iii) Transport, trade and telecommunication ties will be resumed; diplomatic ties and activities renewed;

iv) The border decision will be implemented;

v) Both countries will work together to guarantee regional peace, development and cooperation

“This move opens prospects for real, regional economic integration. Get the economic underpinnings of the region right and you get stability,” said Alex Rondos, the European Union’s special representative for the Horn of Africa.

“There are enormous potential complementarities between the two countries if the recent political advances are consolidated,” said Andrew Mold, who heads the East Africa office of the United Nations Economic Commission for Africa.

While defending the 346.9 billion Ethiopian birr ($12.71 billion) budget for 2018/19 on Friday 6 July, PM Abiy Ahmed made a passionate appeal to the diaspora community to support the ongoing reforms in the country by establishing a ‘Diaspora Trust Fund’ that can reduce aid dependency and facilitate investment in critical sectors such as education and health.

‘‘Diaspora, here is a call to you! A dollar a day to help children get an education, our brothers and sisters, fathers and mothers get health service, and above all, consider this as ‘paying back’ to your people who gave you a future while they had no one.’‘

Ethiopia’s global diaspora is estimated to be two-million strong, with the highest numbers in the US, totalling anything from 250,000 up to about one million.

The government also recently demonstrated its commitment to the diaspora community when the cabinet approved the Amnesty Law that grants amnesty for individuals and groups, either under investigation or convicted on treason, crimes against the constitutional order and armed struggle.

With hugs and cheers, the leaders of Ethiopia and Eritrea have met for the first time in more than 20 years amid a recent thawing in relations between the former East African rivals.

In a landmark visit, Prime Minister Abiy Ahmed landed in the Eritrean capital, Asmara, on Sunday 8 July, for a bilateral summit aimed at repairing relations between the two countries. Eritrean President Isaias Afwerki warmly greeted Abiy at the airport.

This week’s summit aims to “further deepen efforts to bring about lasting peace,” said Abiy’s chief of staff, Fitsum Arega. “Our two nations share a history and bond like no other,” he said on Twitter. “We can now overcome two decades of mistrust and move in a new direction.”

Upon arrival at Asmara, the Ethiopian Prime Minister was welcomed by Eritrean President Isaias Afeworki and other senior Eritrean government officials.

Video footage from the Ethiopian state television showed crowds dancing and singing for the two leaders at the Asmara International Airport.

In advance of Abiy’s arrival, Ethiopian Information Minister Meskel said the visit “heralds a new era of peace and cooperation”.

On Wednesday 4 July 2018, Ambassador Teshome Toga met with the 28 members of the Africa Working Party (COAFR) to brief them about the rapid changes taking place in Ethiopia and say goodbye to them, as he will be leaving Brussels this week.

He started his address by explaining that since Prime minister Dr Abiy Ahmed was elected Chairman of the EPRDF, significant changes have taken place at the political, economic and diplomatic levels in Ethiopia.

Politically, PM Abiy Ahmed has first and foremost been engaging with the public. To do so, he has held town hall meetings in eight of Ethiopia’s nine regions so far to listen to the people’s grievances. He also reshuffled the Cabinet, pardoned thousands of prisoners, engaged in a dialogue with opposition parties and lifted the State of emergency. All this brought back peace and stability to the country.

Another issue is that Ethiopia’s growing economy has become increasingly complex. There is, therefore, a need for increased investments from the private sector and foreign currency. Last month, the government took the bold decision to privatise some of Ethiopia’s critical State-owned enterprises such as Ethio-Telecom and Ethiopian Airlines partially. The main objective is to promote exportations and the transformation of the economy and, ultimately, with job creation as the ultimate objective.

On the diplomatic plan, PM Abiy has been touring neighbouring countries as well as Egypt, Saudi Arabia and the Emirates Arab United to reinforce existing links and promote regional integration. However, two recent events could drastically change the course of the Horn of Africa region. Salva Kiir and Riek Machar came together for the first time in two years, paving the way to a ceasefire in South Sudan. A true regional revolution is also on the road since Eritrea accepted Ethiopia’s olive branch, which resulted and the first visit of an Eritrean delegation to Ethiopia in 20 years.

All this took place over a very brief period – less than 100 days. Ambassador’s realistically noted that although Ethiopia’s problems are not yet over, the people are supportive and listening. The priority for the government should be to deliver on its commitment.

Ambassador Teshome concluded his address by saying that he hoped that the EU would continue to encourage the reforms in Ethiopia in several ways, including to create jobs on the ground, supporting Ethiopia’s peace and security efforts and collaborating on global issues such as climate change or anti-terrorism efforts.

Ms Michelle LABEEU, Deputy Head of Unit Easter Africa and Horn of Africa at DG Devco, then informed the audience about the sectoral dialogue on social and economic development, investment, trade and climate change that took place in Addis of 2 and 3 July 2018.

The EU and Ethiopia appreciated the extremely constructive discussions. Ethiopia demonstrated a firm commitment for liberalisation, opening and regional integration. Both sides have agreed to continue to have this kind of discussion yearly. Besides, progress has also been made to organise an EU-Ethiopia business forum in Brussels.

Several representatives from the EU Member States appreciated Ambassador Teshome’s efforts while he was in Brussels and welcomed the scope and depth of the current reforms. Most of the audience asked questions about the next steps Ethiopia was going to take in its internal discussions as well as in its relations with Egypt and Eritrea. France’s Representative compared the recent developments between Ethiopia and Eritrea to the fall of the Berlin wall in 1989.

Ambassador Teshome replied that while he understands Egypt’s concerns, Cairo should also respect Ethiopia’s rights on the river. Ethiopia will only use the Grand Renaissance dam to produce electricity and will not take water from Egypt. He added that while the GERD is the pillar of the relationship between Ethiopia and Egypt, there is also a need to extend it to other important areas such investment and trade.

On the regional side, he confirmed that Eritrea would probably integrate IGAD soon and that a meeting between Ethiopia and Eritrea leaders is on the works. He added that given the current positive and constructive spirit, the security should improve significantly on the Horn of Africa.

Politically, the next steps in Ethiopia will be to continue to discuss with the recently returned opposition parties and obtain consensus on several critical issues for the country, such as the current federal arrangement. However, it noted that this would not be a “top-down” approach, as the process will be open and transparent.

Finally, Ambassador Teshome concluded by hoping that the EU would work with Ethiopia on identifying real challenges on the ground. The EU is a model of democratisation and regional integration, and Ethiopia is willing to learn from its best practices.