Ethiopia's government has signed an agreement to end hostilities with the Oromo Liberation Front (OLF), which it had previously labelled a "terrorist movement".

The deal signed in the Eritrean capital, Asmara, on Tuesday appeared to be another step by Ethiopian Prime Minister Abiy Ahmed to improve security and diplomatic relations, reform institutions and open parts of the state-controlled economy.

Since the 1970s, the rebels have fought a low-level battle for self-determination for the Oromia region, which is Ethiopia's largest and home to the Oromo ethnic group.

The OLF was initially part of a transitional government set up in 1991 by rebels from a coalition, which had driven former military ruler Mengistu Haile Mariam from power, but they soon fell out with the coalition.

The government has now signed a reconciliation agreement to end hostilities with the OLF's exiled leader, Dawud Ibsa, who lives in exile in Asmara, the capital of neighbouring Eritrea, said Eritrea's Information Minister Yemane Gebremeskel.

"The agreement further states that ... the OLF will conduct its political activities in Ethiopia through peaceful means," he said on Twitter.

The group declared a unilateral ceasefire last month after parliament removed it from a list of banned terrorist groups that it had been part of since 2008.

Al Jazeera's Mohammed Adow reporting from neighbouring Djibouti, said that the agreement is a "huge boost for Prime Minister Abiy Ahmed".

"Prime Minister Abiy himself is an Oromo and having a rebel group from his own community fighting his government would have been a huge setback for the raft of reforms that he has initiated in the country," Adow said, adding there are additional reasons why the OLF signed the agreement, ending hostilities with the state.

"They were getting most of their support from the Eritrean government and now that the Eritrean government has normalised relations with the Ethiopian government, that support was not forthcoming," Adow said.

Abiy took office in April and his reforms have included extending an olive branch to dissidents overseas.

He has also acknowledged abuses by security services and ended a military stalemate with Eritrea that followed a 1998-2000 border war in which 80,000 people are thought to have died.</s>ADDIS ABABA (Reuters) - Ethiopia’s government has signed an agreement to end hostilities with the Oromo Liberation Front, which it had previously declared a terrorist movement, state television reported on Tuesday.

The deal appeared another step in a drive by Prime Minister Abiy Ahmed to improve security and diplomatic relations, reform institutions and open parts of the state-controlled economy.

Since the 1970s, the rebels have fought a low-level insurgency for self-determination for the Oromiya region, which is Ethiopia’s largest and home to the Oromo ethnic group.

The OLF was initially part of a transitional government set up in 1991 by rebels from the EPRDF coalition who had driven Mengistu Haile Mariam from power, but they soon fell out with the coalition.

On Tuesday, the government signed a reconciliation agreement to end hostilities with the OLF’s exiled leader Dawud Ibsa, who lives in exile in Asmara, the capital of neighbouring Eritrea, said Eritrea’s Information Minister Yemane Gebremeskel.

“The agreement further states that ... the OLF will conduct its political activities in Ethiopia through peaceful means,” he said on Twitter. The deal was signed in Asmara.

The group declared a unilateral ceasefire last month after parliament removed it from a list of banned terrorist groups that it had been part of since 2008.

Abiy took office in April and his reforms have included extending an olive branch to dissidents overseas.

He has also acknowledged abuses by security services and ended a military stalemate with Eritrea that followed a 1998-2000 border war in which 80,000 people are thought to have died.</s>ADDIS ABABA: Ethiopia's government has signed an agreement to end hostilities with the Oromo Liberation Front, which it had previously declared a terrorist movement, state television reported on Tuesday.

The agreement appeared to be another step in a drive by Prime Minister Abiy Ahmed to reform institutions, open parts of the state-controlled economy and improve security and diplomatic relations.</s>The Ethiopian government has agreed a reconciliation agreement with the Oromo Liberation Front (OLF), an ex-terror group that operated in the Oromia region of the country.

The federal government delegation comprised Foreign Affairs chief Workneh Gebeyehu and president of Oromia region Lemma Megerssa. The delegation arrived in Asmara on Monday and met with Eritrean president Isaias Afwerki.

The delegation met with OLF leader Dawud Ibsa who had been operating in neighbouring Eritrea. The Asmara meeting according to Eritrean Information Minister agreed to an immediate cessation of hostilities.

The terms of the agreement according to the Eritrean Minister are as follows:

i) Termination of hostilities; 

 ii) That OLF will conduct its political activities in Ethiopia through peaceful means.

 iii) To establish a Joint Committee to implement the agreement.

The OLF till now was one of the foreign-based armed opposition groups that had not accepted an overture by Prime Minister Abiy Ahmed to return to pursue peaceful struggle in the country.

The Front has for years been fighting for self-determination of the Oromo region – Oromos, PM Abiys ethnic group, are the majority ethnic group in the East African country.

Wide and ceaseless anti-government protests in the country was largely championed by the Oromos. At a point the protests were tagged as ‘Oromo protests.’ Political watchers admit it was crucial to political reforms that have since changed the country’s democratic field.
The government of Ethiopia signs a deal with Oromo Liberation Front rebels in an attempt to end long-running hostilities.