Dangote Group and Ethiopia Partner with Djibouti to Build $660 Million Petroleum Pipeline

A new 120-kilometre petroleum-products pipeline will connect landlocked Ethiopia to Djibouti’s Damerjog port, enhancing fuel transport and storage infrastructure along a key East African trade corridor.

The Dangote Group, in partnership with Ethiopian Investment Holdings and the governments of Ethiopia and Djibouti, has announced a $660 million investment to construct a petroleum-products pipeline linking Ethiopia to Djibouti's coast. The project was publicly unveiled on September 25, 2026, by Ethiopian Prime Minister Abiy Ahmed, Djibouti President Ismail Omar Guelleh, and Aliko Dangote, chairman of the Dangote Group.

The pipeline will span approximately 120 kilometres, connecting the Damerjog port in Djibouti to a distribution facility in Dewele, Ethiopia. This infrastructure is set to become operational within 18 months, according to official statements.

Strategic Importance for East Africa

Ethiopia, a landlocked country, relies heavily on Djibouti’s ports for its imports and exports. The new pipeline aims to streamline the transportation of petroleum products, reducing costs and transit times. It will also add new fuel storage and transport capacity along one of East Africa’s main trade corridors, potentially boosting regional trade and energy security.

Background and Regional Context

Currently, fuel transport between Djibouti and Ethiopia depends largely on road tankers, which face challenges such as high costs, delays, and safety risks. The pipeline project reflects growing cooperation between Ethiopia and Djibouti to improve infrastructure and economic integration. The involvement of the Dangote Group, a major African industrial conglomerate, signals increased private sector participation in regional infrastructure development.

Statements from Key Stakeholders

Prime Minister Abiy Ahmed highlighted the pipeline as a milestone in Ethiopia’s efforts to modernize its energy supply chain and reduce dependency on road transport. President Ismail Omar Guelleh emphasized the project’s role in strengthening Djibouti’s position as a regional logistics hub. Aliko Dangote expressed commitment to investing in infrastructure projects that foster economic growth and integration across Africa.

Outstanding Questions and Next Steps

While the project timeline targets completion within 18 months, details on financing arrangements, operational management, and environmental impact assessments have not been fully disclosed. Observers will watch for updates on construction progress and how the pipeline will integrate with existing fuel distribution networks in both countries.

The pipeline’s completion could serve as a model for further cross-border infrastructure projects in the region, enhancing trade and energy cooperation among East African nations.

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