Ethiopia to build $660 mn pipeline to Djibouti with Dangote

TDT | Manama

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Ethiopia, Djibouti and Nigerian billionaire Aliko Dangote are planning a $660 million refined petroleum pipeline that will connect the two countries, aiming to reduce fuel transportation costs and delays along a key regional trade corridor.

The project will feature a 120-kilometre pipeline running from Djibouti to Dewele in Ethiopia. It will also include major storage facilities, with around 375,000 cubic metres of capacity at Damerjog in Djibouti and approximately 800,000 cubic metres at Dewele in Ethiopia.

A spokesperson for Ethiopian Prime Minister Abiy Ahmed said the project is expected to become operational within 18 months. The pipeline is intended to provide a more efficient route for transporting refined petroleum products into landlocked Ethiopia, which relies heavily on Djibouti for access to international markets.

Prime Minister Abiy said the project will be developed through a partnership between Ethiopian Investment Holdings and the Dangote Group. He said the infrastructure will help reduce logistics costs and delays along the Ethiopia-Djibouti transport corridor while strengthening energy security and supply-chain resilience for both countries.

The announcement was made during Abiy's visit to Djibouti, where he met President Ismail Omar Guelleh alongside Dangote.

The pipeline is part of a broader expansion of Dangote's investments in Africa. The group is already developing several major projects in Ethiopia, including a fertiliser project and power plant, as well as a polypropylene packaging facility.

Meanwhile, in neighbouring Kenya, Dangote and the government are expected to break ground next week on a proposed 700,000-barrel-per-day crude oil refinery in Lamu, further expanding the group's presence in Africa's energy sector.