FILE PHOTO: Eritrea's President, Isaias Afwerki receives a key from Ethiopia's Prime Minister, Abiy Ahmed during the Inauguration ceremony marking the reopening of the Eritrean Embassy in Addis Ababa, Ethiopia July 16, 2018. REUTERS/Tiksa Negeri/File Photo

NAIROBI (Reuters) - Ethiopia reopened its embassy in the Eritrean capital Asmara on Thursday, the state-affiliated Ethiopian Fana Broadcasting said, a further sign of improving ties after the Horn of Africa neighbours signed a peace accord on July 9.

Eritrean and Ethiopian leaders have moved swiftly in the past two months to end two decades of hostility since conflict erupted in 1998.

Fana Broadcasting said Ethiopia’s Prime Minister Abiy Ahmed and Eritrea’s President Isaias Afwerki had reopened the embassy in Asmara in a brief ceremony and it named Redwan Hussein as the new Ethiopian ambassador.

In July, Eritrea reopened its embassy in Ethiopia and named an ambassador to represent it.

Abiy held his second face-to-face meeting with Eritrean President Isaias Afwerki on Wednesday since the July accord.

The two are due to hold a summit meeting later on Thursday with Somalia’s President Mohamed Abdullahi.

It is Abdullahi’s second visit to Eritrea since July 30 and the latest sign of thawing relations across the Horn of Africa following Eritrea’s rapprochement with Ethiopia.