Nigerian industrialist Aliko Dangote has joined forces with the governments of Ethiopia and Djibouti to build a landmark $660 million multiproduct petroleum pipeline aimed at dramatically easing fuel transit and securing energy supplies across the Horn of Africa.
The cross-border initiative, developed in partnership with Ethiopian Investment Holdings, was formally launched during a groundbreaking ceremony in Djibouti's Damerjog Industrial Development Free Trade Zone. The ceremony was attended by Ethiopian Prime Minister Abiy Ahmed, Djiboutian President Ismaïl Omar Guelleh, and Dangote Group President Aliko Dangote.
The project features a 120-kilometre (75-mile) pipeline linking coastal marine terminals at Damerjog port in Djibouti to an inland distribution hub in Dewele, eastern Ethiopia. The facility will incorporate vast storage infrastructure, providing approximately 400 million litres of capacity—comprising roughly 375,000 cubic metres at Damerjog and 800,000 cubic metres at Dewele.
Scheduled to become operational within 18 months, the first phase of the pipeline will carry essential refined fuels, including petrol, diesel, and aviation jet fuel.
Prime Minister Abiy Ahmed stressed that the new conduit will transform regional trade logistics by cutting transit times from Djibouti’s coast to the Ethiopian capital, Addis Ababa, from five days down to a single day.
“This pipeline will provide a modern, dependable, and cost-effective system for transporting refined petroleum products into the country,” Abiy stated, noting that the infrastructure will bypass heavy reliance on thousands of road tanker journeys and eliminate distribution bottlenecks across critical sectors such as aviation, agriculture, construction, and manufacturing.
President Ismaïl Omar Guelleh described the development as central to Djibouti's vision of becoming the premier logistics and energy gateway for East Africa.
“The Damarjog-Dewele Pipeline Project is not merely infrastructure; it is an investment in the future prosperity of our region,” Guelleh said, emphasising that the venture will generate substantial economic value, attract new capital, and create jobs for host communities.
Speaking on the strategic importance of the venture, Aliko Dangote framed the corridor as a critical driver of African economic integration and supply-chain resilience. “This project is designed to enhance energy security, improve supply-chain efficiency, and create sustainable economic value for both Djibouti and Ethiopia,” Dangote said, adding that moving refined products via dedicated pipelines substantially lowers operational risks, minimizes product losses, and curbs environmental hazards associated with long-distance road haulage.
The pipeline forms part of Dangote Group's broader Vision 2030 continental investment strategy, which encompasses a 700,000-barrel-per-day refinery project planned in Lamu, Kenya, a $4 billion fertiliser complex in Ethiopia’s Somali region, and ongoing expansion at its flagship refinery in Lekki, Nigeria.
