Abiy, hailed by the Nobel Committee "for his efforts to achieve peace and international cooperation", sparked a historic rapprochement with longtime foe Eritrea soon after coming to power last year.

It led to the formal end of a 20-year-old stalemate between the countries in the wake of the 1998-2000 border conflict -- although the borders that were initially flung open snapped closed again after a few months and severe challenges remain.

The move was part of a dizzying array of reforms within Ethiopia, including releasing jailed dissidents and welcoming home exiled armed groups.

Abiy said he was "humbled and thrilled" to receive the Nobel, adding he hoped it would inspire other African leaders.

He said he could "imagine how the rest of Africa's leaders would think it possible to work on peace-building processes".

- 'Blood, sweat and tears' -

Eritrea's ambassador to Japan, Estifanos Afwerki, on Twitter hailed the decision, saying the people of Eritrea and Ethiopia "with blood, sweat (and) tears have won again over evil."

- Putting 'people first' -

UN Secretary General Antonio Guterres credited Abiy as one of the main reasons why "winds of hope are blowing ever stronger across Africa".

He said peace efforts between Ethiopia and Eritrea had inspired hopes of regional "security and stability" and that Abiy's leadership had "set a wonderful example for others in and beyond Africa looking to overcome resistance from the past and put people first".

- 'Incredible progress' -

The United States, a close ally of Ethiopia, hailed the "incredible progress" made under Abiy.

"In addition to his extraordinary efforts to rebuild relations with Eritrea, Dr Abiy has shown a commitment to the values of democracy and inclusive development by opening up political space, strengthening freedom of the press, releasing political prisoners, and working for the transformation of Ethiopia's economy," the US embassy in Addis Ababa said in a statement.

- 'Showed great courage' -

German Chancellor Angela Merkel said Abiy had "showed great courage in taking the first step towards reconciliation with your neighbour Eritrea, thereby giving millions of people the opportunity to live in peace.

"Your tireless commitment to peace in the region is equally exemplary," she said, also alluding to his role as mediator in Sudan's political crisis which led to the ousting of veteran leader Omar al-Bashir.

- Unfailing commitment to peace' -

French Foreign Minister Jean-Yves Le Drian hailed Abiy as a peacemaker and mediator, saying the Nobel award was in recognition for his "unfailing commitment to freedom and pluralism in Ethiopia and to peace in the Horn of Africa".

- Work 'far from done' -

Rights group Amnesty International saluted Abiy for an array of positive changes since coming to power in April 2018, but said more needed to be done to cement a "lasting human rights legacy".

"This award recognises the critical work Prime Minister Abiy Ahmed's government has done to initiate human rights reforms in Ethiopia after decades of widespread repression," it said.

Amnesty cited reform of the security forces and efforts to "broker an agreement between Sudan's military leaders and the civilian opposition, bringing an end to months of protests" as key achievements but warned Abiy's work "is far from done."

- 'Given the world hope' -

African Union chief Moussa Faki on Twitter congratulated Abiy on the win "for his historic peacebuilding efforts that have given the world hope at a time it needs servant leadership more than ever."

- 'Champion for peace' -

Kenyan President Uhuru Kenyatta hailed Abiy as "a relentless champion for peace, stability and prosperity of his country, our region and the entire African continent."

- 'Model' nation -

The UN High Commissioner for Refugees (UNHCR) hailed the award as a "huge testament" to Abiy's peacemaking efforts and added his country was a "model for other refugee hosting nations around the world".

- Positive change? -

The Nobel Committee underlined the crucial role played by Eritrean President Isaias Afwerki in the peace deal.

"Peace does not arise from the actions of one party alone. When Prime Minister Abiy reached out his hand, President Afwerki grasped it, and helped to formalise the peace process between the two countries," it said, expressing the hope they can enact "positive change for the entire populations of Ethiopia and Eritrea".

burs/ach/cw

Champion Iron Mines