Nigerian industrialist Aliko Dangote has unveiled a $660 million petroleum infrastructure project linking Ethiopia to Djibouti’s coast, with the development expected to improve fuel distribution, reduce transportation costs and strengthen energy security in the region.
Dangote announced the project on Thursday, September 24, 2026, in Djibouti during the groundbreaking ceremony for a petroleum-products storage terminal at the Damerjog Industrial Park.
Key Highlights
Dangote unveils a $660 million Ethiopia-Djibouti petroleum infrastructure project.
The development includes a 120-kilometre multiproduct petroleum pipeline.
The pipeline will connect Damerjog in Djibouti with Dewele in Ethiopia.
Djibouti will have about 375,000 cubic metres of additional petroleum storage capacity.
Ethiopia will gain another 800,000 cubic metres of storage capacity.
The project is expected to begin operations within 18 months.
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It is expected to reduce tanker traffic, road congestion and petroleum transportation risks.
120km Pipeline to Connect Ethiopia, Djibouti
The project is being implemented through a partnership between Dangote Group and Ethiopian Investment Holdings, with the Djibouti authorities participating in the development of the infrastructure.
A major component of the project is a 120-kilometre multiproduct pipeline connecting petroleum storage facilities at Damerjog in Djibouti to inland storage and distribution facilities at Dewele in Ethiopia.
The development will provide about 375,000 cubic metres of petroleum storage capacity in Djibouti and another 800,000 cubic metres in Ethiopia.
Operations are expected to commence within 18 months.
The pipeline is designed to transport petroleum products including Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) and Jet A1.
Project Targets Lower Fuel Transportation Costs
Dangote said the investment would create employment opportunities during construction and generate business opportunities for contractors, suppliers, transport operators and other businesses along the corridor.
According to him, the infrastructure will help Ethiopia reduce its dependence on long-distance road transportation for petroleum products while improving the reliability of fuel supplies and strengthening strategic reserves.
The pipeline is also expected to reduce the number of petroleum tankers travelling along the corridor, easing road congestion and lowering transportation risks.
The reduction in tanker movements could also help minimise the risk of petroleum-related spills along the busy Ethiopia-Djibouti trade route.
Ethiopia, Djibouti Back Regional Energy Investment
Ethiopian Prime Minister Abiy Ahmed announced the project alongside Djibouti President Ismail Omar Guelleh and Dangote.
Ahmed said the investment would help reduce logistics costs and minimise delays along the Ethiopia-Djibouti trade corridor.
The project forms part of broader efforts to strengthen petroleum infrastructure, improve fuel distribution and support trade between Ethiopia and Djibouti.
For Dangote, the investment represents another expansion of his business interests beyond Nigeria and adds to his broader investments in infrastructure, energy and industrial development across Africa.
