Nigerian billionaire Aliko Dangote is supporting the development of a $660 million refined petroleum products pipeline linking Ethiopia and Djibouti, a project aimed at improving fuel supply and reducing transport costs in the region.
The agreement, announced by Ethiopian Investment Holdings, will see a 120-kilometre pipeline constructed between Djibouti’s Damerjog port and a distribution facility in Dewele, Ethiopia. The project will also include storage facilities at both ends of the pipeline.
As a landlocked country, Ethiopia depends heavily on Djibouti’s port for imports, including petroleum products. The new pipeline is expected to streamline fuel transportation, strengthen energy security and reduce logistical delays.
According to Ethiopian Prime Minister Abiy Ahmed, the project will help cut logistics costs and improve the efficiency of the key trade corridor between the two countries.
The pipeline is expected to become operational within 18 months and forms part of Dangote Group’s broader expansion across Africa’s infrastructure and manufacturing sectors.
The company is also developing a $4 billion fertiliser pipeline and power plant, as well as a polypropylene packaging facility in Ethiopia. In addition, Dangote is set to begin construction of a new 700,000-barrel-per-day oil refinery in Lamu, Kenya.
