RismadarVoice Reporters
September 25, 2026
Ethiopia, Djibouti and Dangote Group are set to develop a $660 million refined petroleum pipeline linking the two East African countries, in a major infrastructure project aimed at cutting fuel transportation costs and strengthening regional energy security.
The project will include a 120-kilometre pipeline connecting petroleum infrastructure in Djibouti and Ethiopia, alongside large storage facilities in both countries.
Plans provide for about 375,000 cubic metres of petroleum storage capacity at Damerjog in Djibouti and another 800,000 cubic metres at Dewele in Ethiopia.
The infrastructure is expected to become operational within 18 months.
Ethiopian Prime Minister Abiy Ahmed said the project would be developed through a partnership involving Ethiopian Investment Holdings and Dangote Group.
Abiy announced the project during a visit to Djibouti alongside Djiboutian President Ismail Omar Guelleh and Dangote Group President, Aliko Dangote.
The Ethiopian leader said the pipeline was designed to reduce logistics costs and delays along the Ethiopia-Djibouti transport corridor while strengthening the resilience of fuel supply chains.
Landlocked Ethiopia relies heavily on Djibouti for access to international maritime trade, making the transport corridor between the two countries critical to its economy.
The planned pipeline is expected to provide an alternative to moving large volumes of refined petroleum products by road between the two countries.
Dangote Group is also pursuing other major investments in Ethiopia, including a fertiliser pipeline and power plant project valued at about $4 billion, as well as a polypropylene packaging facility.
The latest project further expands Dangote’s investments outside Nigeria as the industrial group increases its involvement in energy and infrastructure projects across Africa.
