Ethiopia, Djibouti Leaders Hail Dangote’s $660m Pipeline Project as Regional Energy Game-Changer

 Ethiopia, Djibouti Leaders Hail Dangote’s $660m Pipeline Project as Regional Energy Game-Changer

The Prime Minister of Ethiopia, Dr. Abiy Ahmed, and President of Djibouti, Ismaïl Omar Guelleh, have described Dangote Group’s $660 million Damarjog-Dewele Oil Terminal and Pipeline Project as a major investment capable of strengthening regional trade, energy security and economic integration across the Horn of Africa.

The two leaders spoke at the groundbreaking ceremony for the project held at the Damerjog Industrial Development Free Trade Zone in Djibouti, where they commended the President and Chief Executive of Dangote Industries Limited, Aliko Dangote, for investing in critical energy infrastructure on the continent.

The project includes a 120-kilometre multiproduct pipeline connecting marine and coastal storage facilities at Damarjog in Djibouti with inland storage and distribution facilities at Dewele in Ethiopia.

Upon completion, the pipeline is expected to facilitate the efficient movement of refined petroleum products, improve supply-chain reliability and support the growing energy requirements of Ethiopia and other economies within the region.

President Guelleh said the project represents an important milestone in Djibouti’s ambition to establish itself as a major logistics, industrial and energy hub in Africa.

“Today marks an important chapter in Djibouti’s journey toward becoming a premier centre for logistics, energy, and industrial development. The Damarjog-Dewele Pipeline Project is not merely infrastructure; it is an investment in the future prosperity of our region,” he said.

According to the Djiboutian president, the investment would stimulate economic activity, expand port operations, attract additional investments and generate direct and indirect employment opportunities.

He said increased trade volumes and commercial activities arising from the project would strengthen investor confidence while creating opportunities for local businesses.

“We are proud to partner with the Dangote Group in delivering a project that demonstrates the strength of African-led investment and practical African solutions to African challenges,” Guelleh added.

For Prime Minister Abiy, the project is strategically important to Ethiopia’s energy security and industrialisation objectives.

“Ethiopia’s continued economic expansion depends on reliable and efficient access to energy resources. This pipeline will provide a modern, dependable, and cost-effective system for transporting refined petroleum products into the country, thereby enhancing our energy security and reducing supply-chain vulnerabilities,” he said.

Abiy said the infrastructure would help address transportation bottlenecks, improve efficiency across the petroleum distribution network and provide a more stable supply of fuel to critical sectors of the Ethiopian economy.

He noted that the benefits would extend beyond the energy sector, with reliable access to petroleum products expected to support aviation, transportation, agriculture, manufacturing, construction and other industrial activities.

The Ethiopian prime minister also said the pipeline would improve product quality control, reduce losses associated with long-distance transportation and contribute to the competitiveness of the Ethiopian economy.

He described the project as another expression of the longstanding economic relationship between Ethiopia and Djibouti.

“The relationship between Ethiopia and Djibouti has always been anchored on shared prosperity and mutual development. This pipeline is another demonstration of our commitment to regional cooperation and the development of infrastructure that serves the interests of our people,” Abiy said.

Speaking at the ceremony, Dangote said the project was consistent with his group’s broader strategy of investing in infrastructure capable of supporting Africa’s economic development and self-sufficiency.

“This project is designed to enhance energy security, improve supply-chain efficiency, and create sustainable economic value for both Djibouti and Ethiopia. It underscores our commitment to investing in infrastructure that enables African countries to maximise their economic potential,” he said.

Dangote said Djibouti would benefit from increased port activity, higher revenues and employment opportunities, while Ethiopia would gain improved energy security and reduced logistics constraints.

He described the project as a mutually beneficial investment that would also create opportunities for businesses operating across the petroleum value chain.

According to Dangote, the Djibouti corridor is currently the primary route for Ethiopia’s imports and exports, including petroleum products, making it a strategic economic link between the two countries.

He said the pipeline would improve the safety and efficiency of petroleum transportation by reducing reliance on long-distance tanker movements, easing congestion, lowering operational risks and reducing the potential for product losses and environmental incidents.

The project is also expected to generate thousands of jobs during its construction and operational phases while promoting skills transfer and creating opportunities for local contractors, suppliers, transport operators and communities along the corridor.

The Damarjog-Dewele Pipeline Project forms part of Dangote Group’s broader Vision 2030 strategy, under which the conglomerate plans to invest $50 billion across Africa in critical industrial and energy infrastructure.

The strategy is aimed at supporting regional trade, industrialisation and greater economic self-sufficiency across the continent.

Dangote reiterated his commitment to reducing Africa’s dependence on imports by supporting local production and developing infrastructure that can unlock the continent’s economic potential.

“Our vision is to support African countries inj becoming self-sufficient in products for which they possess the raw materials, market demand, and strategic necessity. This is Africa building the infrastructure it needs to accelerate development and deepen intra-African trade,” he said.

The latest investment further expands Dangote Group’s footprint in Africa’s energy and industrial sectors, following its investments in the Dangote Petroleum Refinery and other strategic infrastructure projects across the continent.