Nigerian billionaire Aliko Dangote is helping fund a $660 million fuel pipeline linking Ethiopia and Djibouti, in a project expected to reshape fuel transportation and strengthen energy security in the region.
The project will involve a 120km pipeline connecting Djibouti’s Damerjog port to a fuel distribution facility in Dewele, Ethiopia.
It will also include storage facilities capable of holding about 400 million litres of petroleum products.
The pipeline is expected to begin operations within 18 months.
Fuel Transport Time to Fall From Five Days to One
Ethiopian Prime Minister Abiy Ahmed said the project is expected to significantly reduce the time needed to move fuel from Djibouti’s port to Ethiopia’s capital, Addis Ababa.
The journey currently takes about five days, but the new pipeline is expected to cut that to one day.
The first phase will transport key petroleum products, including petrol, diesel and jet fuel.
For landlocked Ethiopia, the project is particularly significant because the country relies heavily on Djibouti’s port for imports, including fuel.
Why the Pipeline Matters
The new infrastructure is expected to reduce pressure on existing road transportation systems and improve fuel distribution to key sectors of the Ethiopian economy.
Industries including transport, aviation, agriculture and construction could benefit from a more efficient fuel supply chain.
Djibouti is also expected to gain from increased port activity, job creation and additional government revenue.
Speaking at the groundbreaking ceremony, Dangote said the project would strengthen Ethiopia’s energy security and make its fuel supply chain more resilient.
Dangote Expands Across Africa
The Ethiopia-Djibouti pipeline adds to Dangote’s growing investments in infrastructure, manufacturing and energy across Africa.
Dangote Cement has production capacity of about 55 million tonnes annually, while the Dangote oil refinery in Nigeria currently has a capacity of 700,000 barrels per day.
The refinery is seeking to double that capacity to 1.4 million barrels per day.
The refinery also recently listed 4.1 billion ordinary shares on the Nigerian stock exchange, with the company targeting about $1.63 billion from the share offering.
Meanwhile, in Kenya, Dangote is expected to break ground on a proposed 700,000-barrel-per-day crude oil refinery in Lamu.
The latest investment signals Dangote’s broader push to build energy and industrial infrastructure beyond Nigeria, while positioning his businesses within Africa’s growing fuel and manufacturing markets.
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