Ethiopia and Eritrea Reconciliation and its Economic Implications in the Countries

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Addis abeba Univercity


For Eritrea and Ethiopia 2018, was another defining moment in their thorny historical relations since 1998. The year ended a stalemate that lasted for two decades between the countries. This was followed by a re-opening of the border which was a source of optimism for economic advancement for both countries. Therefore, this research has gathered relevant data through interviews and document review from concerning government bodies, private sectors and experts in the field. And, employed the data gathered to further implore and present in-depth insights to the economic implications of the peace re-installment between the countries. Consequently, the research findings showed a shift in trade, business activity, income and employment in the countries following the Ethio-Eritrea reconciliation. However, it also indicated that it is not welcomed unanimous, especially from the Ethiopian side. The research further recognized a similar pattern between the latest economic/trade relationship between the countries and the 1991 to 1998 economic relations of the two nations. The economic relationship from 1991 to 1998 had factored for the war in 1998, to broke out and lead to the stalemate that lasted for two decades. The disdain which immanent from the reconciliation and the economic/trade relation that followed is in some level attributed to the lack of trade agreement. Based on this the research calls for the introduction of border crossing trade agreements and trade protocol.



Ethiopia and Eritrea Reconciliation and its Economic Implications in the Countries