The conflict between the two nations goes back over 150 years and falls in the aftermath of incursions from The Ottoman, Egyptian, Italian, and British Empires. In 1952, Ethiopia annexed Eritrea and held power until independence was finally achieved in 1993. The borders, which consisted mostly of the coastline areas, remained hotly in dispute and erupted into war in 1998. A UN Resolution ended the direct war in 2000; but all diplomatic relations came to a halt and there were still multiple skirmishes occurring in the years since.
The current overtures of peace can benefit both nations in being able to redirect funds toward educational, healthcare, and infrastructure budgets. Additionally, this could and hopefully will be the impetus that motivates other African Nations to unite in working toward a brighter and more autonomous future.
SOURCES:
https://www.economist.com/the-economist-explains/2018/07/17/how-ethiopia-and-eritrea-made-peace
https://www.aljazeera.com/news/2018/07/eritrea-ethiopia-peace-nations-restore-links-180715083644956.html
https://www.aljazeera.com/news/2018/07/eritrea-reopens-embassy-ethiopia-thaw-relations-180716065621148.html
https://www.aljazeera.com/news/2018/07/ethiopia-eritrea-border-community-fears-split-180720142112101.html
http://time.com/5336629/ethiopia-eritrea-peace