This conversation marked the first direct contact between the two leaders since June 2023, when the Sudanese army accused the UAE at the UN Security Council of providing weapons and support to the paramilitary Rapid Support Forces (RSF), with which the army has been in conflict since April last year.

Sources close to the Sudanese Armed Forces (SAF) indicated that the phone call was proposed during Abiy’s visit to Port Sudan the previous week. During this visit, Burhan accompanied Abiy through Sudan’s wartime capital, leading to speculation about the secrecy surrounding discussions between the leaders, both experienced in civil conflicts.

“During Abiy Ahmed’s visit, he persuaded Burhan to ease tensions with the UAE, conveying the desire of Emirati leadership, including Mohammed bin Zayed to see an end to the war” source close to the army told Middle East Eye, a news outlet focused on the region.

Initially intended to remain confidential, the call was reported by the Emirati state news agency WAM, prompting contrasting narratives from Sudanese military circles and the UAE regarding its purpose and who initiated it. The discussions purportedly addressed accusations of UAE support for rebels and initiatives to resolve Sudan’s crisis, underscoring persistent diplomatic challenges. 

The UAE persists in refuting allegations of arming and supporting the RSF, led by its longstanding ally Mohamed Hamdan Dagalo, the general and former Janjaweed commander recognized as Hemeti.

Prime Minister Abiy’s close ties with the UAE, his warming up to Al Burhan, his own experience in civil conflict at home, and his demonstrated neutral position on the conflict in Sudan could provide the breakthrough needed to ease tensions and possibly end Sudan’s devastating war. 

In addition to seeking a peaceful end of Sudan’s war, recent agreements between Ethiopia and the UAE aim to enhance financial liquidity in local currencies and facilitate cross-border transactions through linked payment and messaging systems, signaling efforts to bolster economic ties amid ongoing regional tensions.

The post Ethiopia Mediates Call Between UAE Monarch and Sudan’s Burhan appeared first on Abren.

Accompanying this agreement are two Memorandums of Understandings (MoUs). The first MoU focuses on promoting the use of UAE Dirham and Ethiopian Birr in settling bilateral transactions, thereby enhancing financial cooperation and knowledge-sharing to strengthen both countries’ financial markets. The second MoU aims to integrate payment platforms and electronic systems, such as UAE’s VAESWITCH and Ethiopia’s ETHSWITCH, to streamline payment processes and adhere to regulatory standards.

Governor Balama of CBUAE emphasized that these agreements underscore robust economic cooperation between the UAE and Ethiopia, aiming to boost trade and investment opportunities through currency swaps and improved payment systems. He highlighted the potential for expanded business collaborations in financial and banking sectors.

Governor Mamo of NBE highlighted the UAE’s role as one of Ethiopia’s leading trading partners and source of foreign investment. He noted the currency swap’s importance in diversifying Ethiopia’s currency reserves, which will support the increasing volume of trade and investment transactions anticipated in the future. Both central bankers reaffirmed their commitment to strengthening bilateral partnerships for sustainable development and mutual prosperity.

The signed agreements mark a significant step towards enhancing economic cooperation between the UAE and Ethiopia, paving the way for improved financial stability and expanded bilateral trade and investment opportunities in the foreseeable future.

Ethiopia, which is seeking to rebalance its trade deficit needs ways to mitigate its shortfall in available hard currency needed to import essential goods and bolster its ambitious economic growth plans. The country is currently in drawn-out negotiations with the IMF to facilitates a financial package for reconstruction and economic restructuring. In the meantime, moves to trade in local currency is providing a key lifeline for its growing economy.

The post Ethiopia-UAE to Trade in Domestic Currencies appeared first on Abren.