ADDIS ABABA – Ethiopia, Djibouti, and Nigerian industrialist Aliko Dangote have unveiled plans to construct a 660 million dollar refined petroleum pipeline linking the two Horn of Africa nations, marking a major infrastructure development aimed at strengthening energy supply across East Africa.
The landmark project centers on a 120-kilometer pipeline designed to connect Damerjog in Djibouti to Dewele in Ethiopia. Alongside the pipeline, the partnership will construct massive fuel storage facilities with a combined capacity of approximately 1.175 million cubic meters, divided into 375,000 cubic meters in Damerjog and 800,000 cubic meters in Dewele. Construction work is expected to be fully completed within 18 months to bring the system into operational service.
Once operational, the pipeline is projected to significantly lower heavy transport costs and reduce long transit delays along the primary trade corridor connecting Ethiopia and Djibouti. By streamlining fuel transport, the initiative aims to enhance long-term national energy security and build supply-chain resilience for the landlocked Ethiopian economy.
The development is being executed through a strategic joint venture between Ethiopian Investment Holdings and the Dangote Group.
The venture represents the latest expansion of Dangote Group’s strategic investments in Ethiopia, following previous major commitments including a 4 billion dollar fertilizer manufacturing complex and energy development projects.
Concurrently, Dangote and the government of Kenya are scheduled to break ground next week on a proposed 700,000-barrel-per-day oil refinery in Lamu, reflecting the conglomerate’s rapidly expanding industrial footprint across the African continent.
