Dangote Group partners Ethiopia, Djibouti to develop $660m petroleum pipeline project

The Dangote Group said it has partnered with Ethiopia and Djibouti to develop a $660 million refined petroleum products pipeline linking both East African countries.

According to a statement by the group on Thursday, the groundbreaking ceremony for the Damarjog-Dewele oil terminal and pipeline project was held in Djibouti.

“The project comprises a modern 120-kilometre multiproduct pipeline linking marine and coastal storage facilities at Damarjog in Djibouti with inland storage and distribution facilities at Dewele in Ethiopia,” the statement reads.

“Upon completion, it will facilitate the efficient transportation of refined petroleum products, enhance supply chain reliability, and support the growing energy needs of Ethiopia and the wider region.”

Speaking at the ceremony, Aliko Dangote, chief executive officer (CEO) of Dangote Group, said the project aligns with the group’s broader vision of developing infrastructure to support Africa’s economic growth and self-sufficiency.

“This project is designed to enhance energy security, improve supply-chain efficiency, and create sustainable economic value for both Djibouti and Ethiopia,” the billionaire said.

“It underscores our commitment to investing in infrastructure that enables African countries to maximize their economic potential.”

The industrialist said the project would increase economic activity in Djibouti while improving energy security and reducing logistics constraints in Ethiopia.

“Djibouti will benefit from increased port activity, higher revenues, and new employment opportunities. Ethiopia will gain stronger energy security and fewer logistics bottlenecks,” he said.

“It is truly a win-win outcome for both countries, while local businesses across the value chain will benefit from expanded economic activity.”

Dangote said the Djibouti corridor is currently the primary route for Ethiopia’s imports and exports, including petroleum products, making it one of the strategic economic corridors in Africa.

“Our vision is to support African countries in becoming self-sufficient in products for which they possess the raw materials, market demand, and strategic necessity. This is Africa building the infrastructure it needs to accelerate development and deepen intra-African trade,” he said.

Djibouti President Ismaïl Guelleh described the project as a milestone in the country’s ambition to become a leading logistics, industrial, and energy hub for Africa.

“The Damarjog-Dewele Pipeline Project is not merely infrastructure; it is an investment in the future prosperity of our region,” Guelleh said.

He said the project would stimulate economic activity, expand port operations, attract new investments and create thousands of direct and indirect jobs.

“This investment will generate significant value for Djibouti through increased trade volumes, stronger commercial activity, and enhanced investor confidence. It will create jobs, support local businesses, and further strengthen our position as a critical gateway connecting regional economies,” Guelleh added.

Also speaking, Abiy Ahmed, Ethiopian prime minister, described the project as a strategic infrastructure development that would strengthen the country’s energy security while supporting its industrialisation agenda.

“This pipeline will provide a modern, dependable, and cost-effective system for transporting refined petroleum products into the country, thereby enhancing our energy security and reducing supply-chain vulnerabilities,” he said.

“The impact of this investment extends beyond the energy sector. Reliable access to petroleum products will support aviation, transportation, agriculture, manufacturing, construction, and broader industrial development.

“It will improve product quality control, reduce losses associated with long-distance transportation, and enhance the competitiveness of our economy.”

Ahmed said the project also reflects the longstanding economic partnership between Ethiopia and Djibouti.