Country Risk

Interstate war risk significantly reduced after diplomatic relations restored during Ethiopian PM’s visit to Eritrea

10 July 2018


Ethiopian Prime Minister Abiy Ahmed met Eritrean President Isaias Afwerki in the Eritrean capital, Asmara, on 8–9 July, during which they agreed to restore diplomatic relations and officially declared the war over between the two countries.

Their embassies are to be re-established, the border is to be reopened, flights are to resume, and Eritrean ports are to be jointly developed. The two countries have been in a ‘no war, no peace’ situation since the end of their 1998–2000 border war, with Ethiopia refusing to cede contested territory, including the flashpoint town of Badme, following an international ruling in 2002.

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