President of Eritrea hails thaw in relations in return to Ethiopia
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(Photo: VCG)

Eritrea's President Isaias Afwerki said on Saturday history was being made as he started his first visit to Ethiopia in more than two decades, days after the two neighbors declared an end to their "state of war".

Arriving for three days of meetings, Isaias was greeted warmly at the airport by Ethiopian Prime Minister Abiy Ahmed, and thousands lined Addis Ababa's main thoroughfare Bole Road, sporting T-shirts emblazoned with the pictures of both leaders.

The visit comes just days after Abiy visited Eritrea and signed a pact with Isaias on resuming ties, a move that ended a near 20-year military standoff after a border war.

"Words cannot express the joy we are feeling now. History is being made as we speak," Isaias said during a lunch hosted by Abiy.

Abiy introduced Isaias to guests attending the lunch as an "esteemed and missed guest".

Eritrea formally seceded from Ethiopia in 1993 after a long battle for independence, but the two went to war in 1998 over a border dispute.

Though a peace deal was signed two years later, Ethiopia refused to implement it, saying it wanted more talks.

Reconciliation between Ethiopia and Eritrea could change politics and security in the volatile Horn of Africa region, which hundreds of thousands of young people have fled in search of safety and opportunities in Europe.

During the lunch, Abiy presented Isaias with a gold ring, while a painter handed Isaias a giant portrait of the Eritrean leader.

Ethiopia's government spokesman said Isaias and his delegation would visit an industrial park in the southern Ethiopian town of Hawassa later on Saturday.

Isaias was also due to give a speech in Addis Ababa on Sunday.

Eritrea and Ethiopia have so far agreed to open embassies, develop ports and restart flights.

Eritrea is due to reopen its embassy in Addis Ababa on Monday for the first time since 1998.

Eritrea's Information Minister Yemane Meskel said on Twitter Isaias was accompanied by several ministers and other senior government officials.

Abiy, who is also trying to bring stability to a country that has been torn by protests since 2015, survived a grenade attack last month.