Ethiopia, Djibouti leaders back Dangote’s $660m oil pipeline project

• Ethiopia and Djibouti leaders have backed Dangote Group’s $660m oil terminal and pipeline project.

• The 120km pipeline will connect Damarjog in Djibouti with Dewele in Ethiopia.

• The project is expected to improve fuel supply, reduce transportation bottlenecks and strengthen energy security.

• Dangote says the investment will also boost trade, create jobs and deepen economic cooperation between both countries.

September 24, () – The Prime Minister of Ethiopia, Abiy Ahmed, and Djibouti’s President, Ismaïl Omar Guelleh, have expressed support for Dangote Group’s $660m Damarjog-Dewele Oil Terminal and Pipeline Project, saying it could strengthen energy security and trade links between the two countries.

The leaders spoke on Thursday at the groundbreaking ceremony for the project at the Damerjog Industrial Development Free Trade Zone in Djibouti.

The project involves the construction of a 120-kilometre multiproduct pipeline connecting marine and coastal storage facilities at Damarjog in Djibouti with inland storage and distribution facilities at Dewele in Ethiopia.

When completed, the pipeline is expected to provide an alternative to the movement of refined petroleum products by road, improving the transportation and distribution of fuel into Ethiopia.

Guelleh said the investment would support Djibouti’s ambition to develop its logistics, industrial and energy sectors.

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

He added that the project was expected to increase trade volumes, stimulate commercial activity and create employment opportunities.

“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.

For Ethiopia, the pipeline is expected to address some of the logistical challenges associated with the transportation of petroleum products into the landlocked country.

Abiy said reliable access to energy was essential to sustaining Ethiopia’s economic expansion and industrialisation programme.

“This pipeline will provide a modern, dependable, and cost-effective system for transporting refined petroleum products into the country, thereby enhancing our energy security and reducing supply-chain vulnerabilities,” he said.

The Ethiopian Prime Minister said the project would also have implications beyond the petroleum sector, citing aviation, transportation, agriculture, manufacturing and construction among areas expected to benefit from more reliable fuel supplies.

He described the investment as another example of cooperation between Ethiopia and Djibouti.

“The relationship between Ethiopia and Djibouti has always been anchored on shared prosperity and mutual development,” Abiy said.

Speaking at the ceremony, Dangote Industries Limited President and Chief Executive, Aliko Dangote, said the project was part of the group’s broader investment strategy in African infrastructure.

“Djibouti will benefit from increased port activity, higher revenues, and new employment opportunities. Ethiopia will gain stronger energy security and fewer logistics bottlenecks,” Dangote said.

He noted that the Djibouti corridor is a major route for Ethiopia’s imports and exports, including petroleum products.

According to Dangote, transporting petroleum products through a dedicated pipeline could reduce reliance on long-distance tanker movements, ease congestion and lower operational risks associated with road transportation.

The project is also expected to generate employment during construction and operation while providing opportunities for local contractors, suppliers, transport operators and host communities.

The pipeline forms part of Dangote Group’s Vision 2030 strategy, under which the company says it plans to invest $50bn across Africa in industrial and energy infrastructure.

Dangote said the broader objective was to support greater local production and reduce the continent’s dependence on imports.

“Our vision is to support African countries in becoming self-sufficient in products for which they possess the raw materials, market demand, and strategic necessity,” he said.