The African Union which is headquartered in Ethiopia's capital walked a tight rope throughout the dispute, careful not to criticize its hosts while also facing Somali pressure to intervene

They have yet to work out the fate of the MoU Ethiopia had signed with Somaliland, leading to a freeze in relations.

The rift began when Ethiopia signed a controversial agreement with Somaliland, Somalia’s breakaway region, reportedly offering to recognise its independence in exchange for a Red Sea port and a milita

A landmark visit by Somalia's president to Ethiopia was followed by two countries announcing that they would restore full diplomatic relations.

Ethiopia and Somalia agreed to work together on a multinational force battling Islamist insurgents, signaling a further reduction of diplomatic tensions between the neighboring countries.

Somalia's president will visit Ethiopia on Saturday, his office said, the strongest sign yet of improving relations between the two neighbours after a year of tensions over Addis Ababa's plans to build a naval base in a breakaway Somali region.

Somalia and Ethiopia are set to restore full diplomatic relations after a visit by Somalia's President Hassan Sheikh Mohamud to Addis Ababa, as efforts intensify to heal a year-long rift that threatened further instability in the Horn of Africa.