Dangote’s $660m pipeline links Ethiopia to Djibouti’s energy corridor

By Reporter

The $660 million Damarjog-Dewele Oil Terminal and Pipeline Project being developed by Dangote Group in Djibouti and Ethiopia is set to strengthen energy security, reduce petroleum logistics bottlenecks and deepen regional trade across the Horn of Africa.

Prime Minister of Ethiopia, Abiy Ahmed, and President of Djibouti, Ismaïl Omar Guelleh, described the project as a major regional infrastructure investment at its groundbreaking ceremony at the Damerjog Industrial Development Free Trade Zone in Djibouti.

The project comprises a 120-kilometre multiproduct pipeline connecting marine and coastal storage facilities at Damarjog in Djibouti with inland storage and distribution facilities at Dewele in Ethiopia.

Upon completion, the infrastructure is expected to provide a more efficient channel for transporting refined petroleum products into landlocked Ethiopia while strengthening Djibouti’s position as a logistics, industrial and energy hub.

Guelleh said the project would increase trade volumes, stimulate commercial activity, attract investment and create employment.

“Today marks an important chapter in Djibouti’s journey toward becoming a premier centre for logistics, energy, and industrial development. The Damarjog-Dewele Pipeline Project is not merely infrastructure; it is an investment in the future prosperity of our region,” he said.

He added that the project demonstrated the potential of African-led investment to address infrastructure and economic challenges on the continent.

For Ethiopia, the pipeline is expected to address some of the logistics challenges associated with transporting refined petroleum products into the landlocked country.

Abiy said reliable access to energy was critical to sustaining Ethiopia’s economic expansion and industrialisation programme.

“Ethiopia’s continued economic expansion depends on reliable and efficient access to energy resources. 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.

According to him, the project would help eliminate transportation bottlenecks, improve petroleum distribution efficiency and provide a more stable fuel supply for aviation, transportation, agriculture, manufacturing, construction and other sectors.

He also linked the project to the longstanding economic relationship between Ethiopia and Djibouti, describing the pipeline as another demonstration of their commitment to regional cooperation and infrastructure development.

Speaking at the ceremony, President and Chief Executive of Dangote Industries Limited, Aliko Dangote, said the project aligned with the Group’s strategy of investing in infrastructure capable of supporting Africa’s industrialisation and economic self-sufficiency.

“This project is designed to enhance energy security, improve supply-chain efficiency, and create sustainable economic value for both Djibouti and Ethiopia. It underscores our commitment to investing in infrastructure that enables African countries to maximise their economic potential,” Dangote said.

He said Djibouti would benefit from increased port activity, higher revenues and employment, while Ethiopia would gain a more reliable petroleum supply system and reduced logistics constraints.

The Dangote Group chief executive said the Djibouti corridor was a major route for Ethiopia’s international trade, including petroleum imports, making the pipeline strategically important to the wider regional economy.

He said the project would also improve the safety and efficiency of petroleum transportation by reducing reliance on long-distance tanker movements, easing road congestion and lowering operational risks associated with conventional fuel transportation.

The project is expected to generate jobs during construction and operation and create opportunities for local contractors, suppliers, transport operators and businesses across the petroleum value chain.

Beyond its immediate commercial significance, the investment forms part of Dangote Group’s broader Vision 2030 strategy, under which the company plans to invest $50 billion across Africa in industrial and energy infrastructure.

The strategy is focused on expanding productive capacity, supporting regional trade and reducing Africa’s dependence on imported products.

Dangote said the Group’s investments were intended to help African countries develop greater capacity to meet domestic demand through local production.

“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.

The Damarjog-Dewele project adds to Dangote Group’s growing portfolio of energy and industrial investments across Africa, including the Dangote Petroleum Refinery in Nigeria.

The pipeline investment also highlights the increasing role of private capital in developing cross-border infrastructure designed to connect African markets, improve the movement of strategic commodities and support regional industrialisation.