Dangote Unveils $660m Ethiopia-Djibouti Pipeline Project, Targets Jobs and Energy Security

By George Omagbemi

Nigerian industrialist Aliko Dangote has unveiled a major $660 million petroleum infrastructure project designed to connect Ethiopia with Djibouti’s coast, as part of efforts to improve energy security, reduce transportation costs and strengthen regional trade.

Dangote spoke on Thursday, September 24, 2026, in Djibouti, during the groundbreaking ceremony for a petroleum-products storage terminal at the Damerjog Industrial Park.

The project is being developed through a partnership involving Dangote Group and Ethiopian Investment Holdings, with Djibouti authorities also involved in the infrastructure development.

It includes a 120-kilometre multiproduct pipeline linking coastal storage facilities at Damerjog in Djibouti with inland storage and distribution facilities at Dewele in Ethiopia.

According to Reuters, the project will also feature approximately 375,000 cubic metres of storage capacity in Djibouti and 800,000 cubic metres in Ethiopia, with the infrastructure expected to become operational within 18 months.

Dangote said the project would create employment during construction and open opportunities for contractors, suppliers, transport operators and businesses along the corridor.

He also said the infrastructure would reduce Ethiopia’s reliance on long-distance road transportation of petroleum products while improving supply reliability and strengthening strategic fuel reserves.

The project is expected to support the movement of products including Premium Motor Spirit, automotive gas oil and Jet A, while reducing tanker traffic, road congestion, risks and petroleum spills.

Ethiopian Prime Minister Abiy Ahmed, who announced the project alongside Djibouti President Ismail Omar Guelleh and Dangote, said the investment would reduce logistics costs and delays along the Ethiopia-Djibouti corridor.

For Dangote, the project represents another major expansion of his investments beyond Nigeria, with the businessman describing it as an opportunity to strengthen African infrastructure, trade and economic integration.