Ethiopia has reopened its embassy in the Eritrean capital, Asmara, the latest step in restoring ties after two decades of hostilities.
The ceremony was attended by Eritrean President Isaias Afwerki and Ethiopian Prime Minister, Abiy Ahmed.
It is still not clear when Ethiopian troops will withdraw from territory disputed with Eritrea, a key part of the recent peace deal.
The Somali president, Mohamed Abdullahi Farmajo, is also in Asmara.
On Wednesday, the three leaders signed an agreement to strengthen political and economic ties, and to cooperate on regional security.
They also agreed to help ease tensions between Eritrea and Djibouti according to a tweet from a spokesperson for Somalia’s president.