Dangote’s $660m pipeline links Ethiopia, Djibouti

Ethiopian Prime Minister Dr Abiy Ahmed and Djibouti President Ismaïl Omar Guelleh have described Dangote Group’s $660 million Damarjog-Dewele Oil Terminal and Pipeline Project as a major investment capable of strengthening regional trade, energy security and economic integration across the Horn of Africa.

The leaders spoke at the groundbreaking ceremony held at the Damerjog Industrial Development Free Trade Zone in Djibouti, where they commended African industrialist and President/Chief Executive of Dangote Industries Limited, Aliko Dangote, for investing in strategic energy infrastructure.

The project comprises a 120-kilometre multiproduct pipeline linking marine and coastal storage facilities at Damarjog with inland storage and distribution facilities at Dewele in Ethiopia.

Upon completion, the pipeline will facilitate the transportation of refined petroleum products into Ethiopia, improve supply reliability and reduce logistics challenges associated with long-distance road transportation.

President Guelleh said the project would strengthen Djibouti’s ambition to become a leading logistics, industrial and energy hub.

“Today marks an important chapter in Djibouti’s journey toward becoming a premier centre for logistics, energy, and industrial development,” he said.

He added that the investment would increase trade volumes, expand port operations, attract new investment and create direct and indirect employment.

“We are proud to partner with the Dangote Group in delivering a project that demonstrates the strength of African-led investment and practical African solutions to African challenges,” Guelleh said.

Prime Minister Abiy described the pipeline as a strategic infrastructure project that would enhance Ethiopia’s energy security and support industrialisation.

“Ethiopia’s continued economic expansion depends on reliable and efficient access to energy resources,” he said, adding that the pipeline would provide a modern and cost-effective system for transporting refined petroleum products.

According to Abiy, the project would eliminate transportation bottlenecks, improve petroleum distribution and provide a more stable fuel supply for aviation, transportation, agriculture, manufacturing and construction.

He also said the project demonstrated the longstanding economic partnership between Ethiopia and Djibouti and showed how African countries could collaborate on infrastructure that supports shared prosperity.

President and Chief Executive of Dangote Industries Limited, Aliko Dangote, said the project reflected his group’s broader commitment to developing infrastructure capable of supporting Africa’s economic transformation.

“This project is designed to enhance energy security, improve supply-chain efficiency, and create sustainable economic value for both Djibouti and Ethiopia,” he said.

He noted that Djibouti would benefit from increased port activity, revenues and employment, while Ethiopia would gain improved energy security and fewer logistics bottlenecks.

Dangote said the corridor linking Djibouti and Ethiopia is one of Africa’s strategic trade routes, particularly for petroleum products.

The pipeline, he added, would reduce dependence on tanker movements, ease congestion, lower transportation risks and minimise product losses and environmental incidents.

The project is also expected to create jobs during construction and operation while supporting local contractors, suppliers and host communities.

It forms part of Dangote Group’s Vision 2030 strategy to invest $50 billion across Africa in industrial and energy infrastructure.

Dangote said the broader objective was to reduce Africa’s dependence on imports, strengthen local production and deepen intra-African trade.