The Government of the Federal Democratic Republic of Ethiopia and the Government of the Republic of the Sudan (herein after referred to as the Contracting Parties). 

DESIRING to strengthen their traditional ties of friendship and to extend and intensify the economic relation between them and in particular to create favorable conditions for investments by Investors of one Contracting Party in the territory of the other Contracting Party. 

RECOGNIZING the need to protect investments by Investors of the Contracting Parties and to stimulate the flow of investments and individual business initiative with the view of promoting the economic prosperity of the Contracting Parties. 

HAVE AGREED as follows: