Ethiopia and Djibouti Praise Dangote’s $660 Million Pipeline Project

Ethiopian Prime Minister Abiy Ahmed and Djibouti President Ismaïl Omar Guelleh have praised Dangote Group’s $660 million Damarjog-Dewele Oil Terminal and Pipeline Project. They see it as a big investment that can change regional trade and energy supply.

The leaders spoke during the groundbreaking ceremony for the project at the Damerjog Industrial Development Free Trade Zone in Djibouti.

This project will build a 120-kilometre multiproduct pipeline. It will connect marine and coastal storage facilities at Damarjog in Djibouti with inland storage and distribution facilities at Dewele in Ethiopia.

When finished, the pipeline will help move refined petroleum products into Ethiopia. It aims to cut down transportation delays and make fuel supplies more reliable for the country and the region.

President Guelleh mentioned that the project would help Djibouti’s goal to become a major logistics, industrial, and energy hub in Africa.

“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 this investment would boost trade volumes, expand port operations, attract more investments, and create jobs both directly and indirectly.

“We are proud to partner with the Dangote Group in delivering a project that shows the strength of African-led investment and practical African solutions to African challenges,” Mr Guelleh said.

Prime Minister Abiy also spoke about the pipeline. He said it would strengthen Ethiopia’s energy security by giving a better and more reliable way to transport refined petroleum products.

“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.

He noted that the project would help many sectors like aviation, transportation, agriculture, manufacturing, and construction by improving access to petroleum products.

The prime minister added that the infrastructure would cut losses from long-distance transport and improve Ethiopia’s petroleum distribution network.

He called the project another sign of economic cooperation between Ethiopia and Djibouti.

At the ceremony, Aliko Dangote, President and Chief Executive of Dangote Industries Limited, said the project is part of the group’s larger goal to develop infrastructure that boosts 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,” Mr Dangote said.

He pointed out that Djibouti would see more port activity, revenues, and jobs, while Ethiopia would gain better energy security and fewer logistics problems.

Mr Dangote explained that the Djibouti corridor is a key route for Ethiopia’s imports and exports, including petroleum products.

He mentioned that the pipeline would lessen reliance on long-distance tanker movements, reduce congestion, and lower risks tied to road transport of petroleum products.

The project is also expected to create jobs during construction and operation. It will offer chances for local contractors, suppliers, transport operators, and communities.

The Damarjog-Dewele project is part of Dangote Group’s Vision 2030 strategy. The group plans to invest $50 billion across Africa in industrial and energy infrastructure.

Mr Dangote said the aim is to help African countries cut down on imports and boost 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,” he said.

This project further expands Dangote Group’s investments in Africa’s energy and industrial sectors. This follows the development of the Dangote Petroleum Refinery in Nigeria and other investments across the continent.