The Dangote Group has officially broken ground on a $660 million oil terminal and pipeline project connecting coastal Djibouti to landlocked Ethiopia.
The 120-kilometre multiproduct pipeline will connect marine storage facilities at Damarjog in Djibouti to an inland distribution hub at Dewele in Ethiopia. The project is designed to carry refined petroleum products directly into Ethiopia, and is set to be operational within 18 months.
The project will cut transport costs, ease road congestion, and prevent product losses along the East Africa trade corridors.
Ethiopian Prime Minister Abiy Ahmed and Djibouti President Ismaïl Omar Guelleh joined Aliko Dangote at the groundbreaking ceremony in Djibouti. Both regional leaders see the investment as a game-changer for economic integration and energy security across the Horn of Africa.
Djibouti President Guelleh described the pipeline as a milestone in his agenda to make the country a premier logistics and energy hub of the region.
“The Damarjog-Dewele Pipeline Project is not merely infrastructure; it is an investment in the future prosperity of our region,” he said.
Prime Minister Abiy Ahmed said that the project addresses a logistical bottleneck for Ethiopia. He stated that a steady, cost-effective fuel supply will strengthen key industries such as aviation, agriculture, manufacturing, and construction.
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