ADDIS ABABA, Sept 24 – Dangote Group and Ethiopian Investment Holdings have launched a $160 million petroleum infrastructure project linking Damerjog in Djibouti with Dewele in Ethiopia, creating a new pipeline and storage network for refined petroleum products.
The project was announced on Thursday during a groundbreaking ceremony at the Djibouti Damerjog Industrial Park, attended by Ethiopian Prime Minister Abiy Ahmed, Djiboutian President Ismail Omar Guelleh and Dangote Group President and CEO Aliko Dangote.
The infrastructure will connect marine and coastal storage facilities at Damerjog with inland storage and distribution facilities at Dewele through a multiproduct pipeline. Storage terminals will support the system at both ends.
Dangote said the project is expected to strengthen Ethiopia’s energy security while reducing the logistical challenges associated with transporting petroleum products over long distances by road.
“Upon completion, as mentioned, Ethiopia will gain greater energy security and fewer logistics bottlenecks,” Dangote said.
The pipeline will serve a corridor that carries a significant share of Ethiopia’s international trade, including petroleum products. Dangote described it as one of the region’s most strategically important economic routes.
“Today, the Djibouti corridor carries most of Ethiopia’s import and export trade. This includes petroleum products. The corridor is therefore one of the region’s most strategic economic arteries.”
Pipeline to Reduce Road Transport Pressure
The project is expected to reduce dependence on long-distance tanker transportation between Djibouti and Ethiopia, easing congestion and reducing road safety and environmental risks.
Dangote said the infrastructure would also improve petroleum product quality control and supply reliability for sectors including aviation, transport, agriculture, construction and industry.
A modern multiproduct pipeline will receive, store, transport and distribute refined petroleum products, with the first phase expected to support products including jet fuel, automobile gas and premium motor spirit.
For Djibouti, the project is expected to increase activity around its port and logistics infrastructure while creating opportunities for local businesses.
“Djibouti will gain increased port activity, higher revenues and more jobs. A win-win outcome for both nations. Local businesses will also have more opportunities,” Dangote said.
The project is also expected to create employment during construction and generate permanent technical and administrative positions once operations begin.
“This project will create jobs during the construction… It will also transfer skills to local people. It will also support permanent technical and administrative jobs when operations begin. Contractors, service providers, transport operators, suppliers and host community will benefit.”
The planned infrastructure includes a 120-kilometre pipeline, while Djibouti’s project authorities have said the associated storage facilities are designed to handle substantial volumes of petroleum products.
African Capital for Regional Infrastructure
Prime Minister Abiy described the project as a strategic investment connecting Damerjog and Dewele, with the pipeline supported by storage terminals at both ends.
“Together with President Ismail Omar Guelleh and Aliko Dangote, we announce today a major strategic investment connecting Damerjog in Djibouti to Dewele in Ethiopia through a new refined petroleum products pipeline, supported by storage terminals at both ends,” Abiy said.
He added that the project, being developed through a partnership between Ethiopian Investment Holdings and the Dangote Group, would reduce logistics costs and delays while strengthening energy security and the resilience of the Ethiopia-Djibouti corridor.
The project forms part of Dangote Group’s broader expansion of energy and industrial infrastructure across Africa. The group is also developing its Dangote Petroleum Refinery in Nigeria, which has a current capacity of 700,000 barrels per day and plans to expand to 1.4 million barrels per day.
Dangote said the group’s wider investments are intended to reduce Africa’s dependence on imports and increase domestic and regional production.
“We are committed to reducing Africa’s dependence on imports,” he said.
The group has also outlined a $50 billion Vision 2030 investment programme across Africa, according to Dangote, with the stated objective of supporting infrastructure, industrialisation and greater intra-African trade.
“This is Africa building the infrastructure it needs. It will help African economies trade more with one another.”
The Damerjog-Dewele project adds another piece of cross-border energy infrastructure to the Horn of Africa, linking Djibouti’s maritime logistics capacity with Ethiopia’s large inland market while placing African private capital and institutions at the centre of the development.
