Ethiopian prime minister Abiy Ahmed and Djibouti president Ismail Omar Guelleh on Thursday, September 24, hailed Dangote Group’s $660 million pipeline project for strengthening energy security and regional integration.
The leaders spoke at the groundbreaking ceremony of the Damarjog-Dewele Oil terminal and pipeline project at the Damerjog industrial development free trade zone in Djibouti.
The project is being developed through a partnership between Ethiopian Investment Holdings and Dangote Group. It will connect Damerjog in Djibouti with Dewele in Ethiopia through a 120-kilometre refined petroleum products pipeline supported by storage facilities at both ends.
The project will include marine and coastal storage facilities at Damerjog and inland storage and distribution facilities at Dewele.
According to the project details, the storage facilities will have a combined capacity of more than one million cubic metres, while the pipeline will transport refined petroleum products between the two countries.
Guelleh described the project as an important step in Djibouti’s ambition to strengthen its position as a logistics, industrial and energy hub.
He said the investment would increase economic activity, support port operations, attract additional investment and create employment opportunities.
The Djiboutian president also described the project as an example of African-led investment and regional cooperation.
Abiy said the pipeline would provide Ethiopia with a more reliable and efficient system for transporting refined petroleum products, helping to strengthen the country’s energy security.
He said the project would reduce logistics costs and delays along the Ethiopia-Djibouti corridor while improving the efficiency and resilience of the petroleum supply chain.
The prime minister added that reliable access to petroleum products would support key sectors of the Ethiopian economy, including transportation, aviation, agriculture, manufacturing and construction.
He also said the project reflected the longstanding economic relationship between Ethiopia and Djibouti and would support greater regional integration.
Dangote said the project aligned with the Group’s strategy of investing in infrastructure capable of supporting Africa’s economic development and energy self-reliance.
He said the pipeline would improve the movement of refined petroleum products while reducing reliance on long-distance road transportation.
Dangote added that Djibouti would benefit from increased port activity and economic opportunities, while Ethiopia would gain a more reliable supply of refined petroleum products and fewer logistics bottlenecks.
He said the Ethiopia-Djibouti corridor was strategically important because it serves as a major route for Ethiopia’s imports and exports, including petroleum products.
The project is expected to improve the safety and efficiency of petroleum transportation by reducing dependence on tanker movements and easing congestion along the corridor.
It is also expected to create jobs during construction and operation while providing opportunities for local contractors, suppliers, transport operators and host communities.
Dangote said the investment formed part of the Group’s broader vision 2030 strategy, which includes plans to invest $50 billion across Africa in industrial and energy infrastructure.
He added that the Group remained committed to supporting local production, reducing dependence on imports and strengthening intra-African trade.
The Damarjog-Dewele project further expands Dangote Group’s investments in Africa’s energy and industrial sectors.
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