A new $660 million refined petroleum pipeline is set to connect Ethiopia and Djibouti, with financial support from Nigerian billionaire Aliko Dangote.
According to a Thursday announcement from Ethiopian Investment Holdings, the project features a 120-kilometer line connecting Damerjog port to a receiving distribution facility in Dewele. Storage infrastructure will also be established at both ends of the pipeline, which is targeted to start operations within 18 months.
As a landlocked nation, Ethiopia depends heavily on Djibouti’s port facilities to receive crucial imports, including refined fuel.
Ethiopian Prime Minister Abiy Ahmed highlighted the project’s strategic importance, stating it “will reduce logistics costs and delays” while enhancing energy security across the trade corridor.
This joint venture aligns with Dangote Group’s ongoing industrial expansion throughout the African continent. In Ethiopia, the conglomerate is currently constructing a polypropylene packaging facility along with a $4 billion fertilizer pipeline and power plant project. Additionally, Dangote is scheduled to break ground next week on a separate 700,000-barrel-per-day oil refinery in Lamu, Kenya.
