Ethiopia and Djibouti Unite on $660m Dangote Pipeline Project

In a significant boost to regional integration and industrial ambition, the leaders of Ethiopia and Djibouti have officially broken ground on the $660 million Damerjog-Dewele Oil Terminal and Pipeline Project. 

This ambitious infrastructure venture, spearheaded by the Dangote Group, promises to redefine energy logistics across the Horn of Africa.

The groundbreaking ceremony, held at the Damerjog Industrial Development Free Trade Zone in Djibouti, brought together Ethiopian Prime Minister Abiy Ahmed and Djiboutian President Ismaïl Omar Guelleh. Both leaders lauded the project as a transformative force, capable of slashing logistics bottlenecks, securing stable fuel supplies, and catalyzing economic growth for both nations.

The centerpiece of the project is a modern 120-kilometre multiproduct pipeline. Designed to bridge the gap between Djibouti’s coastal storage facilities at Damerjog and Ethiopia’s inland distribution hubs at Dewele, the pipeline aims to replace unreliable, high-risk road transport with a streamlined, cost-effective energy transit system.

For Ethiopia, the project is a vital piece of the industrialisation puzzle. Ahmed emphasised that the pipeline addresses a critical vulnerability in the national supply chain. “Ethiopia’s continued economic expansion depends on reliable and efficient access to energy resources,” he said. “This pipeline will provide a modern, dependable, and cost-effective system for transporting refined petroleum products, enhancing our energy security.”

Guelleh highlighted the project’s role in realising his nation’s long-standing ambition to become a premier logistics and energy hub for the continent. He framed the investment as more than just steel and engineering; it is an economic engine.

“This investment will generate significant value for Djibouti through increased trade volumes, stronger commercial activity, and enhanced investor confidence,” he said. Beyond the immediate logistical upgrades, the project is expected to create thousands of jobs, empower local businesses, and solidify the strategic partnership between the two neighboring countries.

For Aliko Dangote, president and chief executive of Dangote Industries Limited, this project represents a tangible step toward his ‘Vision 2030’ strategy—a $50 billion commitment to building critical industrial and energy infrastructure across Africa.

“This project is designed to enhance energy security, improve supply-chain efficiency, and create sustainable economic value,” he said. He pointed out that by minimising reliance on long-distance tanker convoys, the pipeline will reduce the environmental risks and operational hazards that currently plague regional fuel distribution.

Dangote underscored that the initiative is about more than just moving oil—it is about Africa fostering self-sufficiency. “This is Africa building the infrastructure it needs to accelerate development and deepen intra-African trade,” he said.