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Ethiopian Airlines flies to Eritrea, buys stake in Eritrean Airlines

Eritrea The newly-resumed transport links are the latest step in speedy rapprochement between the two former foes in the Horn of Africa region. Earlier this month, Ethiopia and Eritrea declared an end to the state of war that had existed between them since 1998. The Eritrean embassy in Ethiopia’s capital Addis Ababa was re-opened Monday, following a visit over the weekend by Eritrean President Isaias Afwerki, who was received by Ethiopian Prime Minister Abiy Ahmed. The weekend prior, Abiy was in the Eritrean capital of Asmara. Abiy, 41, has spearheaded swift reforms since taking power in April, following a political crisis in which his predecessor resigned amid mass anti-government protests. Abiy ended the Ethiopian government’s self-imposed state of emergency two months early and has opened up sectors of the heavily state-controlled economy to private investment. Ethiopia is positing itself as a regional manufacturing and export hub, achieved through its China-style, state-led development model . The country has seen double-digit economic growth as recently as 2017, although approximately one-third of its inhabitants live below the poverty line. Eritrea, meanwhile, is known as one of the most secretive — and least developed — countries in the world. Now that flights have resumed, Ethiopian and Eritrean passport holders will be able to travel between the two countries and "be granted a visa by the respective authorities on arrival," Fitsum Arega, Abiy's chief of staff, tweeted last week. “The perception that Ethiopia offers more substantial economic opportunities could lead to substantial migration (by Eritreans),” Pat Thaker, editorial director for the Middle East and North Africa at analysis firm Economist Intelligence Unit, told CNBC.

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