Key facts
- Aliko Dangote is helping to fund a $660 million fuel pipeline between Ethiopia and Djibouti.
- The pipeline will connect Djibouti's Damerjog port to a distribution facility in Dewele, Ethiopia.
- The project includes 120km of pipeline and storage capacity for about 400 million liters.
- Operations are expected to begin within 18 months.
- The pipeline will reduce fuel transport time to Ethiopia's capital from five days to one.
- The first phase will transport jet fuel, diesel, and petrol.
Nigerian billionaire Aliko Dangote, Africa's richest man, is helping to finance a new $660 million fuel pipeline designed to connect Djibouti's Damerjog port to Ethiopia. The project, which includes a 120km pipeline and storage facilities for approximately 400 million liters, is anticipated to be operational within 18 months.
Ethiopian Prime Minister Abiy Ahmed stated that the pipeline will significantly cut the time required to transport fuel to the capital, Addis Ababa, from five days to just one. The initial phase will focus on key petroleum products such as jet fuel, diesel, and petrol. Dangote highlighted that the initiative will bolster Ethiopia's energy security and enhance the resilience of its fuel supply chain.
As a landlocked nation, Ethiopia relies heavily on Djibouti's port for its imports, including petroleum products. This new infrastructure is expected to alleviate pressure on existing transport systems that serve vital industries like transportation, aviation, agriculture, and construction. Djibouti is also projected to benefit from increased port activity, job creation, and higher government revenues.
The pipeline project is part of Dangote's broader strategy to expand his infrastructure and manufacturing ventures across Africa. Dangote's business interests include cement production with a capacity of about 55 million tonnes annually and a Nigerian oil refinery capable of processing 700,000 barrels of crude daily, with plans to double that capacity.