After a costly war in 1998 and two subsequent decades of animosity, Eritrea and Ethiopia formally agreed to settle their differences with a historic truce in September 2018. The former enemies have since basked in the peace, with their improved relations opening the door for increased trade and investment and new transport routes. But trade and security problems loom on the horizon — carrying the risk of once again souring relations between the Horn of Africa neighbors. Peace and Prosperity If Ethiopia and Eritrea can manage to solve their lingering issues, both countries and their respective economies would clearly benefit from international investors taking an interest in the fast-growing region that has suddenly become more stable. Improving relations have already begun to unlock new investment opportunities for Ethiopia, in particular .