Aliko Dangote and Ethiopian Investment Holdings are investing $660 million in a new petroleum-products pipeline that will connect landlocked Ethiopia to Djibouti’s coast, creating critical new infrastructure for moving and storing refined fuel.
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Aliko Dangote, Africa’s richest man, and Ethiopian Investment Holdings are investing $660 million to build a petroleum-products pipeline connecting landlocked Ethiopia to Djibouti’s coast, creating new infrastructure for moving and storing refined fuel.
The 120-kilometre pipeline will link Dewele in Ethiopia with Damerjog in Djibouti and is expected to become operational within 18 months, according to Billene Seyoum, a spokesperson for Ethiopian Prime Minister Abiy Ahmed.
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The project will include two major storage facilities, with capacity for about 800,000 cubic metres at Dewele and 375,000 cubic metres at Damerjog.
Reducing Costs on Ethiopia’s Main Trade Corridor
The project is designed to reduce transport costs and delays along the Ethiopia-Djibouti corridor, one of Ethiopia’s main routes to the sea, while improving the reliability of petroleum-product supplies.
For Ethiopia, the new connection could provide additional infrastructure for managing fuel imports and storage as the economy expands. For Djibouti, it strengthens the country’s role as a logistics gateway for its much larger landlocked neighbour.
Part of Dangote’s Expanding African Energy Network
The partnership adds another major energy investment to Dangote Group’s growing presence in Ethiopia. The Nigerian billionaire’s group is separately developing a more than $4 billion fertiliser project and power plant in the country, as well as a polypropylene packaging facility.
Dangote is also expanding his energy ambitions elsewhere in East Africa. In Kenya, his group is preparing to develop a 700,000-barrel-per-day refinery in Lamu, giving the industrial conglomerate a foothold in another major regional fuel market.
The latest pipeline project also fits into Dangote’s broader push to build infrastructure around the distribution of refined petroleum products across Africa. The group is planning a proposed 2,650-kilometre petroleum-products pipeline network in southern Africa, with routes linking Namibia, Botswana and South Africa and another section extending through Zimbabwe and Zambia to the Democratic Republic of Congo.
Strategic Significance
The Ethiopia-Djibouti pipeline represents a significant step in Dangote’s vision to create an integrated African fuel distribution network, connecting production, refining, and distribution infrastructure across the continent.
Source: Accra Street JournalÂ
Last Updated on September 25, 2026 by Samuel Kwame Boadu
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