Aliko Dangote is backing a $660 million petroleum products pipeline project designed to strengthen fuel security and trade infrastructure between Ethiopia and Djibouti, extending the Nigerian industrialist’s growing footprint across Africa. The project, developed through a partnership between Dangote Group and Ethiopian Investment Holdings, will connect Damerjog on Djibouti’s coast with Dewele in eastern Ethiopia through a 120 kilometre multiproduct pipeline. According to Reuters, the infrastructure is expected to become operational within 18 months and will include approximately 375,000 cubic metres of storage capacity in Djibouti and another 800,000 cubic metres in Ethiopia. The announcement was made during Ethiopian Prime Minister Abiy Ahmed’s visit to Djibouti alongside President Ismail Omar Guelleh and Dangote.
The project is intended to reduce Ethiopia’s reliance on road tankers for transporting refined petroleum products from Djibouti, lowering logistics costs, reducing delays and improving the resilience of one of East Africa’s most important trade corridors. Dangote said the infrastructure would strengthen energy security, improve supply chain efficiency and create economic opportunities for both countries. For Djibouti, the project is expected to increase activity around its port and storage infrastructure, while Ethiopia, a landlocked economy, stands to gain a more efficient route for securing fuel supplies. The investment also builds on Dangote Group’s existing expansion in Ethiopia, where the company is involved in a separate $4 billion fertiliser pipeline and power project, as well as a polypropylene packaging facility.
The $660 million pipeline adds another dimension to Dangote’s broader push into Africa’s energy and industrial infrastructure, coming as the group advances major projects beyond Nigeria. In Kenya, Dangote and the government are preparing to move forward with a proposed 700,000 barrel per day refinery in Lamu, which is expected to serve markets across East and Central Africa. Taken together, the projects point to a wider strategy of connecting refining, petroleum distribution, logistics and industrial infrastructure across African markets. For Ethiopia and Djibouti, the new pipeline could become a critical piece of regional energy infrastructure by reducing dependence on road-based fuel transport and strengthening the commercial importance of the Ethiopia Djibouti corridor.
