Siege of Saïo the Italian dictator, Benito Mussolini, proclaimed the colony of "Africa Orientale Italiana" (AOI, Italian East Africa), formed from Ethiopia (after the Italian victory in the Second Italo-Ethiopian War, fought 3 October 1935 – May 1936) and the existing Italian possessions of Italian Eritrea and Italian Somaliland. On 10 June 1940, Mussolini declared war on Britain and France, which made Italian military forces in Libya a threat to Egypt and those in Italian East Africa a danger to the British and French colonies in East Africa. Italian belligerence also closed the Mediterranean to Allied merchant ships and endangered British supply routes
Italian East Africa at the expense of the Amhara to strengthen support by Muslims for the Italian colony. Italy's Fascist regime encouraged Italian peasants to colonize Ethiopia by setting up farms and small manufacturing businesses. However, few Italians came to the Ethiopian colony, with most going to Eritrea and Somalia. While Italian Eritrea enjoyed some degree of development, supported by nearly 80,000 Italian colonists, by 1940 only 3,200 farmers had arrived in Ethiopia, less than ten percent of the Fascist regime's goal. Continued insurgency by native Ethiopians, lack of natural resources, rough terrain, and uncertainty of political and military conditions discouraged development and