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On Monday, July 16th, Eritrea reopened its embassy in Ethiopia’s capital city of Addis Ababa. The symbolic move represents further improvement in the ties between the two countries after a long-lasting border dispute. The dispute devolved into a two-year war beginning in 1998 and has been followed by a series of skirmishes between the two countries’ militaries since. The embassy opening comes on the heels of a formal peace agreement in June that officially ended the war.

An improved relationship between the two countries will be mutually beneficial. After Eritrea voted for independence in 1993, Ethiopia lost its coastline and Red Sea ports. Eritrea promised Ethiopia would have continued access to the Red Sea, but border disputes strained the relationship and severed economic ties between them.

Ethiopia’s Prime Minister, Abiy Ahmed, prioritized a resolution with Eritrea and reached the peace agreement just two months after taking office. Better relations with Eritrea give Ethiopia access to the Red Sea and the ability for Ethiopia to continue to develop its economy, which is rapidly growing due to foreign investment in infrastructure and manufacturing.

Abiy also announced last month his intent to reconstitute Ethiopia’s Navy. After Eritrean independence, Ethiopia’s Navy was disbanded. Ethiopia reached deals with Sudan, Kenya, and Djibouti to establish a military presence, and it is likely this peace agreement will pave the way for an Ethiopian base in Eritrea as well. Ethiopia’s powerful military will be boosted by a reestablished Navy, making it one of the strongest in Africa.

The agreement will bring much needed stability to a strategically important region, dominated by one of the busiest trade routes in the world, the Red Sea. At the southern end of the Red Sea, the Eritrean coastline covers the Bab el-Mandeb Strait, which is a gateway to the Suez Canal in the north. Stability between these two countries will facilitate trading and relieve tensions with Djibouti, a nation that also has a border dispute with Eritrea. The U.S. and many other countries established bases in Djibouti to maintain military forces close to conflict zones in Africa and the Middle East.

Peace between the two countries will also allow Ethiopia to focus on counterterror efforts and peace missions across the region. Ethiopia’s military is instrumental in preserving peace in Sudan’s disputed Abyei region and is a major force against al-Shabaab in Somalia as well. Domestically, Ethiopia continues to face unrest as evidenced by last month’s grenade attack at a government rally.

It is worth watching if the relations between Ethiopia and Eritrea result in better cooperation from the Eritrean government in efforts to oppose terrorism. The State Department reports that Eritrea has financially supported al-Shabaab in the past despite public statements from Eritrean officials committing to fight terrorism. The U.S. placed sanctions on Eritrea in 2009, but a U.N. group has found no conclusive evidence that Eritrea has continued supporting al-Shabaab.

In any case, Eritrea’s government has rejected meeting with Western officials to discuss its counter terror strategy, so the U.S. cannot be certain Eritrea is acting against terrorists. Ethiopia has also asked the U.S. to lift sanctions on Eritrea based on the U.N. group’s findings in an effort to facilitate the resolution. If Eritrea has indeed severed ties with al-Shabaab, the peace agreement between these two countries should be viewed as a positive development for U.S. interests and should assist in stabilizing the region to provide an economic boost to an impoverished area of the world.

 

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