Somalia and Ethiopia said they would work together to resolve a dispute over Addis Ababa's plan to build a port in the breakaway region of Somaliland, which had drawn in regional powers and threatened to further destabilise the Horn of Africa.

The two neighbours have been at loggerheads since January when Ethiopia signed a maritime deal with Somaliland - which Somalia considers as part of its territory. It prompted fears of a wider regional conflict as Egypt has been backing Somalia - largely due to its anger with Ethiopia for building a dam on the River Nile.