Somalia's president will visit Ethiopia on Saturday, his office said, the strongest sign yet of improving relations between the two neighbours after a year of tensions over Addis Ababa's plans to build a naval base in a breakaway Somali region.

Somali President Hassan Sheikh Mohamud arrived in Ethiopia’s capital on Saturday, exactly a month to the day since the two countries’ leaders reached an agreement aimed at ending a bitter, yearlong dispute. Ethiopian Prime Minister Abiy Ahmed said he received Mohamud at the Addis Ababa airport.

The two countries are looking to build on a recent peace deal that aims to defuse mounting tension in the Horn of Africa.

Ethiopia relaunched its stock exchange, the Ethiopian Securities Exchange, on Friday after a 50-year absence. The operations of the Ethiopia Securities Exchange were stopped in 1974 following the takeover by a communist military government.

Ethiopia opened its stock exchange — part of a plan to lure investors to an economy recovering from a civil war — without any brokers and no initial public offering debuts.

Ethiopian Prime Minister Abiy Ahmed rang a Wall Street-style bell to officially launch the country's first stock exchange in 50 years on Friday, part of efforts to liberalise the struggling economy. Ethiopia has not had any form of stock exchange in 50 years,