In recent years, Ethiopia has made significant strides in fostering amicable relations with its neighboring countries, and the benefits of these diplomatic efforts are becoming increasingly evident.
The nation, strategically located in the Horn of Africa, has historically faced challenges in its relationships with neighboring states. However, a renewed commitment to diplomacy and collaboration is now yielding positive results, enhancing regional stability, economic growth, and mutual cooperation.
Following decades of conflict, the historic peace agreement signed in 2018 marked a turning point. This accord not only ended a long-standing feud but also paved the way for renewed trade and communication between the two nations.
The reopening of the border facilitated the movement of goods and people, leading to increased economic activity. As a result, both countries have begun to experience a revival in commerce, with Ethiopian goods increasingly reaching Eritrean markets and vice versa.
Moreover, Ethiopia has been proactive in engaging with Somalia, promoting peace and stability in a country that has faced significant challenges for decades. Ethiopia’s involvement in Somali affairs, particularly through the African Union Mission in Somalia (AMISOM), has been crucial in combating terrorism and fostering security.
The establishment of a federal government in Somalia has been supported by Ethiopia, which has offered assistance in governance and development initiatives. This partnership has led to improved security conditions, enabling economic activities to flourish in previously unstable regions.
Ethiopia’s relationship with Djibouti has also flourished. As Djibouti is home to Ethiopia’s primary port, the two countries have a vested interest in maintaining strong ties. Recent investments in infrastructure, such as the expansion of the Port of Djibouti and the construction of new railways, have strengthened economic connectivity.
The relationship between Ethiopia and Sudan has also seen positive developments. Despite the tensions, recent dialogues have focused on trade and collaboration on issues such as the (GERD). Both countries have engaged in negotiations to address mutual concerns regarding water rights and management. This diplomatic engagement is not only crucial for resolving disputes but also opens avenues for economic cooperation, particularly in agriculture and infrastructure development.
This collaboration has not only improved trade efficiency but has also bolstered both economies, creating jobs and fostering regional integration.
Additionally, the Grand Ethiopian Renaissance Dam (GERD) opens avenues for regional cooperation in energy trade. By exporting surplus electricity to neighboring countries, Ethiopia can foster economic ties and support regional stability. This collaboration can enhance energy security across the East African region countries like Sudan, Tanzania, Kenya, and Djibouti, promoting collective growth.
Furthermore, the GERD is expected to play a pivotal role in alleviating poverty in neighboring countries while promoting peace and development in the region
The Ethiopia’s commitment to regional cooperation is active participation lead in addressing regional challenges, such as climate change, food security, and conflict resolution. Its role as a mediator in various disputes has earned Ethiopia respect and recognition as a key player in East African politics.
Furthermore, the country has hosted numerous peace talks and summits, contributing to its image as a diplomatic hub. This leadership position not only enhances Ethiopia’s influence but also fosters collaborative efforts among African nations to tackle pressing issues, including economic development and security threats.
The fruits of Ethiopia’s amicable ties are also visible in cultural exchanges and people-to-people connections. Initiatives aimed at promoting tourism, education, and cultural heritage have flourished, leading to a deeper understanding and appreciation among neighboring populations. Festivals celebrating shared histories and traditions have become common, fostering unity and cooperation at the grassroots level.
As Ethiopia continues to engage positively with its neighbors, the region stands to gain not only economically but also socially, paving the way for a more integrated and peaceful Horn of Africa. The ongoing efforts exemplify how dialogue and cooperation can overcome historical divisions, setting a precedent for conflict resolution and partnership in the region.
It is well recognized that Ethiopia has given top priority to the kernel of the entire diplomacy; economic diplomacy, as the nation has one formidable enemy; poverty or backwardness. To effectively combat and eradicate poverty and backwardness, one has to pursue economic diplomacy which would enable it to attract more investment, trade, tourism among others.
Economic policies adopted by the government over the last two decades have played an instrumental role in developing the country’s economy. If Ethiopia works hard, the status it has been labeled and past tarnished image of poverty, backwardness and war will be gradually reversed.
The major economic diplomacy framework aims at attracting investment from foreign countries, promoting massive Foreign Direct Investment and ensuring proper technology transfer in Ethiopia are given due place.
The government has given emphasis to expanding the frontier of Ethiopia’s relations to all corners of the world. In principle, as Ethiopia is part and parcel of the global community, it should have a vibrant tie with every country. If someone asks about the distribution of Ethiopian councilors and embassies, they can be assured that they are scattered all over the world thereby introducing, and safeguarding, to the rest of the world.
True, the role economic diplomacy plays is immense. Recognizing this fact, economic diplomacy tops priority areas not only on Ethiopia’s diplomacy orbit but also on all nations’ diplomacy hubs. That is why Ethiopian diplomats are currently busy in speeding up the development of trade, the expansion of investment and the strengthening of relationships. They acquaint the country’s potential investment alternatives to the global business community, indeed!
Ethiopia’s trade link among different nations is gathering momentum. But this is not enough given the nation’s untapped and immense investment opportunities in the fields of agriculture, livestock, agro-processing, manufacturing, industry, construction and tourism.
It is repeatedly stated that the nation does have diplomatic relations almost with all countries of the world, with over 180 countries. But here it must be noted that Ethiopia does have diplomatic relations where it even does not have embassies.
Scholars said that economic diplomacy tops the political agenda of every government in the 21th century. The same is true with the Ethiopian government. Economics and politics are the two sides of the same coin. As it is true of other nations, suitable political environment is basically needed to ensure sustainable economic development in Ethiopia.
BY FEKADU BELAY
THE ETHIOPIAN HERALD TUESDAY 29 APRIL 2025
