Dangote Backs $660 Million Ethiopia-Djibouti Fuel Pipeline

Nigerian billionaire Aliko Dangote has partnered with the Ethiopian government to fund a $660 million fuel pipeline connecting Ethiopia and Djibouti, aiming to transform energy transport across the Horn of Africa.

The landmark infrastructure project features a 75-mile (120-kilometer) pipeline linking Djibouti’s Damerjog port to a major inland storage and distribution terminal in Dewele, Ethiopia.

Speaking at the ground-breaking ceremony, Ethiopian Prime Minister Abiy Ahmed highlighted the project's economic impact, noting that the pipeline will cut fuel delivery times from Djibouti’s port to Addis Ababa from five days down to just one.

Landlocked Ethiopia currently relies on Djibouti’s coastal infrastructure for the vast majority of its petroleum imports, making transport bottlenecks a frequent hurdle for domestic trade.

During the ceremony, Dangote, Africa’s wealthiest individual, stated that the joint venture would strengthen Ethiopia’s national energy security while creating a far more resilient supply chain.

With construction slated for completion within 18 months, the facility will hold up to 400 million liters of fuel, boosting fuel supply across the region.

The initial operational phase will focus on transporting refined petroleum products, including diesel, petrol, and jet fuel.

Once operational, the pipeline is expected to ease strain on regional road networks and lower logistics costs for key Ethiopian sectors, including aviation, agriculture, construction, and transport.

Djibouti is also poised to benefit from heightened port throughput, localized job creation, and increased government revenue.

The project aligns with Dangote’s aggressive cross-border expansion in energy and industrial infrastructure across the continent.

Beyond his core cement holdings—which process roughly 55 million metric tons annually—Dangote’s primary oil refinery in Nigeria currently processes 700,000 barrels of crude per day, with plans to double capacity to 1.4 million barrels daily.

The refinery recently listed 4.1 billion ordinary shares on the Nigerian exchange to secure $1.63 billion in capital.

Expanding his regional energy footprint further, Dangote is also scheduled to break ground next week on a proposed 700,000-barrel-a-day crude refinery in Lamu, Kenya.