Ethiopia and Djibouti Break Ground on $660m Dangote-Backed Cross-Border Fuel Pipeline

Ethiopia and Djibouti have broken ground on a $660 million cross-border petroleum products pipeline backed by the Dangote Group and Ethiopian Investment Holdings, in a project expected to create jobs and strengthen regional energy security.

The 120-kilometre multiproduct pipeline will run from Damerjog in Djibouti to Dewele in eastern Ethiopia, supported by storage terminals with a combined capacity of about 1.175 million cubic metres, including 375,000 cubic metres at Damerjog and 800,000 cubic metres at Dewele.

The groundbreaking ceremony in Djibouti was attended by Ethiopian Prime Minister Abiy Ahmed, Djiboutian President Ismail Omar Guelleh and Aliko Dangote.

“Together with President Ismail Omar Guelleh and Aliko Dangote, today we announce a major strategic investment connecting Damerjog in Djibouti to Dewele in Ethiopia through a new refined petroleum products pipeline, supported by storage terminals at both ends,” Abiy said.

“This landmark infrastructure will reduce logistics costs and delays, strengthen energy security, and enhance the efficiency and resilience of the Ethiopia-Djibouti corridor.”

Dangote said the project would deliver tangible gains for both nations. “Djibouti will gain increased port activity, higher revenues and more jobs. A win-win outcome for both nations. Local businesses will also have more opportunities,” he said.

He added that the pipeline would ease pressure on road transport and improve safety. “By reducing long-distance tanker traffic, we can ease congestion and reduce road risk. We can also lower the possibility of spills and losses. Djibouti’s position as a regional logistics hub will become much, much stronger.”

The pipeline is expected to become operational within 18 months. Ethiopia, which depends heavily on the Djibouti corridor for imports and exports, is expected to gain greater energy security and fewer logistics bottlenecks.

Dangote said the group has committed $50 billion to investments across Africa under its Vision 2030 plan. “This is Africa building the infrastructure it needs. It will help African economies trade more with one another.”

President Guelleh described the project as a step toward African energy sovereignty. “Every energy independence is the condition of every other independence,” he said, calling for African energy resources to increasingly be stored in African facilities and transported through African pipelines.

The Dangote Group is separately developing a $4 billion fertiliser pipeline and power plant, as well as a polypropylene packaging facility, in Ethiopia.