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

MOGADISHU, Somalia – Somali President Hassan Sheikh Mohamud concluded his two-day visit to Addis Ababa on Sunday after meeting with Ethiopian Prime Minister Abiy Ahmed. They agreed to restore and strengthen their bilateral relations and establish full diplomatic representation in both Addis Ababa and Mogadishu.

Somalia's president visited 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.

Prime Minister Abiy Ahmed bid farewell to President Hassan Sheikh Mohamud of Somalia as he wrapped up his trip to Ethiopia. “This afternoon, I bid farewell to President Hassan Sheikh Mohamud following productive discussions on deepening cooperation and strengthening bilateral ties during his working visit to Ethiopia,

The two countries are looking to build on a recent peace deal that aims to defuse mounting tension in the Horn of Africa.

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