Nigerian businessman Aliko Dangote is supporting the construction of a $660 million fuel pipeline linking Ethiopia with Djibouti as part of efforts to improve energy transportation across the region.
The 120-kilometre facility will connect Djibouti’s Damerjog port to a petroleum distribution centre at Dewele in Ethiopia.
The project will also provide storage facilities capable of holding approximately 400 million litres of fuel.
Construction is expected to take about 18 months, with the initial stage designed to handle petrol, diesel and aviation fuel.
Ethiopian Prime Minister Abiy Ahmed said the infrastructure would significantly shorten the journey for petroleum products from Djibouti to Addis Ababa, reducing delivery times from around five days to just one.
Speaking during the groundbreaking ceremony, Dangote said the investment would improve Ethiopia’s energy security while creating a more reliable fuel distribution network.
As a landlocked country, Ethiopia depends heavily on Djibouti’s port for imports.
The pipeline is expected to ease congestion on existing road networks and support key sectors such as transportation, aviation, farming and construction.
Djibouti is also projected to gain from increased maritime activity, employment opportunities and additional state income.
The investment forms part of Dangote’s broader expansion across Africa, particularly in manufacturing and infrastructure.
His cement business currently has an annual production capacity of about 55 million tonnes, while the Dangote refinery in Nigeria can process up to 700,000 barrels of crude oil daily.
The company plans to increase that figure to 1.4 million barrels per day.
The refinery has also recently listed 4.1 billion ordinary shares on Nigeria’s stock exchange in an effort to raise approximately $1.63 billion.
Meanwhile, Dangote is expected to begin work next week on a proposed 700,000-barrel-per-day crude refinery in Kenya’s Lamu.
By: Magdalene Agyeiwaa Sarpong