The diplomatic relations between the two nations were established in the year 1924.The Nile River is base on the relation of the two countries. The Nile also has a long-lasting impact on the relations between the two countries. It can be inferred from history that the relations of the two countries are mainly centered around the Nile River.
The two countries have been trying to cooperate in various fields and have realized different achievements. Accordingly, the Establishment of the Joint Commission of Ministers (JMC) in 1987 to strengthen diplomatic relations between the two countries were a significant step next to the establishment of diplomatic relations. In 1989, the first Joint Ministerial Commission meeting was held in Addis Ababa and the second meeting was held in April 2006 in Cairo, third 2010 in Addis Ababa, the fourth joint commission meeting was held in 2011 in Cairo, the fifth in 2014 in Addis Ababa.
The Joint Commission has agreed to elevate the level of leadership when Egypt's President Abdel Fattah Al-Sisi visited Ethiopia from 23-25, 2015 to further strengthen bilateral relations. Thus, the sixth joint commission meeting held in Cairo in December from 17 - 21, 2017 was attended by the leaders of the two countries and upgraded the Joint Ministerial Commission to High-Level Joint Commission. The seventh joint commission is expected to be held in Addis Ababa in January 2020.
The two countries have signed different bilateral agreements at different times which relates to various sectors. Despite the bilateral agreements signed between the two countries at different times, it is hard to say that the overall efforts to implement the agreements and the results from the agreements are satisfactory.
The two countries have signed various agreements on various occasions to improve economic relations between them. The major cooperation agreements on trade, investment promotion, exclusion of tariffs, crop production and agricultural mechanization, livestock, and meat marketing are the major ones.
The two countries have signed an investment expansion and protection agreement. Signing this agreement has had a positive impact on the flow of investment from Egypt to Ethiopia. Since 2007, 60 Egyptian investors have taken investment licenses. As a result, 30 investors have already started producing and providing services and have contributed to the flow of foreign capital and created employment opportunities for many citizens in Ethiopia.
The social relations of the two countries are focused on health, education, and agriculture.
Memorandum of Understanding on Health has been signed in 2010, focusing on health sector cooperation between the two countries.
Egypt is known for its expertise in Irrigation water management and subsurface drainage systems. As a result, an agreement has been signed to work in this area and has been working on capacity building since the agreement was signed.