In Addis Ababa, Ethiopia, the Organisation of African Unity is established.

The Organisation of African Unity (OAU; French: Organisation de l'unit africaine, OUA) was an intergovernmental organization established on 25 May 1963 in Addis Ababa, Ethiopia, with 32 signatory governments. One of the main heads for OAU's establishment was Kwame Nkrumah of Ghana. It was disbanded on 9 July 2002 by its last chairman, South African President Thabo Mbeki, and replaced by the African Union (AU). Some of the key aims of the OAU were to encourage political and economic integration among member states, and to eradicate colonialism and neo-colonialism from the African continent.The absence of an armed force like that of the United Nations left the organization with no means to enforce its decisions. It was also not willing to become involved in the internal affairs of member nations prompting some critics to claim the OAU as a forum for rhetoric, not action. Recognizing this, the OAU in September 1999 issued the Declaration, calling for a new body to take its place. On 9 July 2002, this happened with the creation of the African Union. The African Union continues to this day to uphold many of the founding principles of the OAU.

Addis Ababa (; Amharic: አዲስ አበባ, lit. 'new flower' [adˈdis ˈabəba] (listen)), also known by its original name Finfinne (lit. "natural spring"), is the capital and largest city of Ethiopia. It also serves as the regional capital of Oromia. In the 2007 census, the city's population was estimated to be 2,739,551 inhabitants. Addis Ababa is a highly developed and important cultural, artistic, and financial centre of Ethiopia.Addis Ababa was depicted as a fortified place called "Barara" in the 15th century. Barara was immediately plundered by Adalite general Ahmad ibn Ibrahim al-Ghazi (Ahmed Gran) following his army entrapment in 1529 amidst a crusade against the Ethiopian medieval army. Founding history of Addis Ababa dates back in late 19th-century by Menelik II, Negus of Shewa, in 1886 after finding Mount Entoto unpleasant two years prior. At the time, the city was a resort town; its large mineral spring abundance attracted nobilities of the empire, led them to establish permanent settlement. It also attracted many members of the working classes — including artisans and merchants — and foreign visitors. Menelik II then formed his imperial palace in 1887. Addis Ababa became the empire's capital in 1889, and subsequently international embassies were opened. Addis Ababa urban development began at the beginning of the 20th century, and without any preplanning.Addis Ababa saw a wide-scale economic boom in 1926 and 1927, and an increase in the number of buildings owned by the middle class, including stone houses filled with imported European furniture. The middle class also imported newly manufactured automobiles and expanded banking institutions. During the Italian occupation, Addis Ababa's growth rate increased exponentially, investing primarily to infrastructure: an "imperial road" was built connecting Addis Ababa with Massawa, Mogadishu, Djibouti, and Assab, and a railway connecting Addis Ababa with Djibouti. Under Emperor Haile Selassie, the city benefited from modernization of infrastructure, including road surfacing, electric power and telephone line installation, and several monuments were erected.Addis Ababa remains federal chartered city in accordance with the Addis Ababa City Government Charter Proclamation No. 87/1997 in the FDRE Constitution.

Referred to as "the political capital of Africa" due to its historical, diplomatic, and political significance for the continent, Addis Ababa serves as the headquarters of major international organizations such as the African Union and the United Nations Economic Commission for Africa (ECA).The city lies a few kilometres west of the East African Rift, which splits Ethiopia into two, between the Nubian Plate and the Somali Plate. The city is surrounded by the Special Zone of Oromia and is populated by people from the different regions of Ethiopia. It is home to Addis Ababa University. The city has a high human development index and is known for its vibrant culture, strong fashion scene, high involvement of young people, thriving arts scene, and for having the fastest economic growth of any country in the world.