Foreign policy
In May 2018, Abiy visited Saudi Arabia, receiving guarantees for the release of Ethiopian prisoners including billionaire entrepreneur Mohammed Hussein Al Amoudi, who was detained following the 2017 Saudi Arabian purge.
In June 2018, he met with Egyptian President Abdel Fattah el-Sisi in Cairo and, separately, brokered a meeting in Addis Ababa between the South Sudanese president Salva Kiir and rebel leader Riek Machar in an attempt to encourage peace talks.
In December 2022, he attended the United States–Africa Leaders Summit 2022 in Washington, D.C., and met with US President Joe Biden.
In February 2023, French President Emmanuel Macron welcomed Abiy Ahmed in Paris. In April 2023, Abiy met with Italian Prime Minister Giorgia Meloni in Addis Ababa. In early May 2023, German Chancellor Olaf Scholz met with Abiy Ahmed in Addis Ababa to normalize relations between Germany and Ethiopia that had been strained by the Tigray War.
In July 2023, Abiy attended the 2023 Russia–Africa Summit in Saint Petersburg and met with Russian President Vladimir Putin.
Since taking power Abiy has pursued a policy of expanding landlocked Ethiopia's access to ports in the Horn of Africa region. Shortly before his assumption of office it was announced that the Ethiopian government would take a 19% stake in Berbera Port in the Somaliland region located in northern Somalia as part of a joint venture with DP World. In May 2018, Ethiopia signed an agreement with the government of Djibouti to take an equity stake in the Port of Djibouti, enabling Ethiopia to have a say in the port's development and the setting of port handling fees.
Two days later a similar agreement was signed with the Sudanese government granting Ethiopia an ownership stake in the Port Sudan. The Ethio-Djibouti agreement grants the Djiboutian government the option of taking stakes in state-owned Ethiopian firms in return, such as the Ethiopian Airlines and Ethio Telecom. This in turn was followed shortly thereafter by an announcement that Abiy and Kenyan President Uhuru Kenyatta had reached an agreement for the construction of an Ethiopian logistics facility at Lamu Port as part of the Lamu Port and Lamu-Southern Sudan-Ethiopia Transport Corridor (LAPSSET) project.
The potential normalization of Ethiopia-Eritrea relations likewise opens the possibility for Ethiopia to resume using the Ports of Massawa and Asseb, which, prior to the Ethio-Eritrean conflict, were its main ports, which would be of particular benefit to the northern region of Tigray. All these developments would reduce Ethiopian reliance on Djibouti's port which, since 1998, has handled almost all of Ethiopia's maritime traffic.
Upon taking office, Abiy stated his willingness to negotiate an end to the Ethio-Eritrean conflict. In June 2018, it was announced that the government had agreed to hand over the disputed border town of Badme to Eritrea, thereby complying with the terms of the 2000 Algiers Agreement to bring an end to the state of tension between Eritrea and Ethiopia that had persisted despite the end of hostilities during the Ethiopia-Eritrea War. Ethiopia had until then rejected the international boundary commission's ruling awarding Badme to Eritrea, resulting in a frozen conflict (popularly termed a policy of "no war, but no peace") between the two states.
During the national celebration on 20 June 2018, the president of Eritrea, Isaias Afwerki, accepted the peace initiative put forward by Abiy and suggested that he would send a delegation to Addis Ababa. On 26 June 2018, Eritrean Foreign Minister Osman Saleh Mohammed visited Addis Ababa in the first Eritrean high-level delegation to Ethiopia in over two decades.
In Asmara, on 8 July 2018, Abiy became the first Ethiopian leader to meet with an Eritrean counterpart in over two decades, in the 2018 Eritrea–Ethiopia summit. The very next day, the two signed a "Joint Declaration of Peace and Friendship" declaring an end to tensions and agreeing, amongst other matters, to re-establish diplomatic relations; reopen direct telecommunication, road, and aviation links; and facilitate Ethiopian use of the ports of Massawa and Asseb. Abiy was awarded the Nobel Peace Prize in 2019 for his efforts in ending the war.
In practice, the agreement has been described as "largely unimplemented". Critics say not much has changed between the two nations. Among the Eritrean diaspora, many voiced disapproval for the Nobel Peace Prize focusing on the agreement with Eritrea when so little had changed in practice. In July 2020, Eritrea's Ministry of Information said: "Two years after the signing of the Peace Agreement, Ethiopian troops continue to be present in our sovereign territories, Trade and economic ties of both countries have not resumed to the desired extent or scale."
In October 2023, Abiy said that the secession of Eritrea from Ethiopia in 1993 was a historical mistake that threatens the existence of landlocked Ethiopia, saying that "In 2030 we are projected to have a population of 150 million. 150 million people can't live in a geographic prison." He said Ethiopia has "natural rights" to direct access to the Red Sea and if denied, "there will be no fairness and justice and if there is no fairness and justice, it's a matter of time, we will fight".
In June 2021, representatives from multiple countries called for the award of the Nobel Peace Prize to Abiy to be re-considered because of the war crimes committed in Tigray. In an opinion piece, Simon Tisdall, one-time foreign editor of The Guardian, wrote that Abiy "should hand back his Nobel Peace Prize over his actions in the breakaway region".
A person on a petition organization called Change.org launched a campaign to gather 35,000 signatures for revoking his Peace Prize; as of September 2021, nearly 30,000 have been obtained.
The dispute between Egypt and Ethiopia over the Grand Ethiopian Renaissance Dam has become a national preoccupation in both countries. Abiy has warned: "No force can stop Ethiopia from building a dam. If there is need to go to war, we could get millions readied."
After the murder of activist, singer and political icon Hachalu Hundessa ignited violence across Addis Ababa and other Ethiopian cities, Abiy hinted, without obvious suspects or clear motives for the killing, that Hundessa may have been murdered by Egyptian security agents acting on orders from Cairo to stir up trouble. An Egyptian diplomat responded by saying that Egypt "has nothing to do with current tensions in Ethiopia". Ian Bremmer wrote in a Time magazine article that Prime Minister Abiy "may just be looking for a scapegoat that can unite Ethiopians against a perceived common enemy".