Industrialist from Nigeria, Aliko Dangote, has announced a $ 660 million pipeline project between Ethiopia and Djibouti for refined petroleum products, meant to enhance fuel transportation through one of East Africa’s critical trade routes. The 120-kilometer-long project will link Damerjog in Djibouti and Dewele in eastern Ethiopia, connecting Djibouti’s coastline fuel infrastructure to its inland storage and distribution networks.
This project is being implemented through a joint venture by the Ethiopian Investment Holdings (EIH) company and the Dangote Group, as the infrastructure will reduce dependence on tanker trucks and increase fuel security in Ethiopia.
What Is the Ethiopia-Djibouti Pipeline Project?
The proposed pipeline system will be a 120 km multiproduct pipeline which will be capable of moving refined petroleum products from one country to another.
A vital part of the system will be the storage. Present estimates show that there will be about 375,000 cubic metres of storage at Damerjog and 800,000 cubic metres at Dewele, making a total storage capacity of over 1 million cubic metres for the whole system.
The project was announced on September 24, 2026, during the launch ceremony attended by Ethiopian Prime Minister Abiy Ahmed, Djiboutian President Ismail Omar Guelleh, and Dangote Group President Aliko Dangote. The parties have expressed an understanding that the system can be put into operation in 18 months’ time.
Why Does Ethiopia Require the Pipeline?
Being a landlocked country, Ethiopia is highly dependent on Djibouti for importing goods, among other things, petroleum products. The fuel moved via road now has to travel via the highly congested Ethiopia-Djibouti transport corridor.
According to Ethiopian Investment Holdings CEO Brook Taye, the pipeline will reduce reliance on trucks, minimize congestion, and speed up fuel delivery. Ethiopian officials have also asserted that the project will lower logistics expenses and improve energy security.
Therefore, the project is likely to ensure the availability of a dedicated channel for the transportation of fuel from the coast to Ethiopia’s distribution network.
Significance for Djibouti
For Djibouti, the significance of the project includes the further development of Djibouti’s position as an energy and logistical gate to Ethiopia and the Horn of Africa region.
The pipeline will connect the Damerjog Industrial Development Free Trade Zone and its infrastructure to the distribution network of Ethiopia at the location called Dewele. Increased ability to handle and store fuel will contribute to increased activities at Djibouti’s port and industrial facilities and will reduce the burden on road transport.
Where Does Dangote Come In?
The involvement of Dangote is an expansion of the Nigerian company’s increasingly active role in the energy and industrial activities of East Africa.
The firm is collaborating with Ethiopian Investment Holdings on the construction of the pipeline. At the same time, the firm itself is making major investments in various projects within East Africa that include fertilizer and energy production, as well as building a refinery in Kenya.
Thus, for Dangote, this is just another cross-border infrastructure project in a strategically valuable trade corridor of Africa.
What Comes Next?
In the immediate future, work will concentrate on the pipeline and the related storage facilities. Although the officials have already mentioned an approximate 18-month timeline to begin operations, there is not enough information about the financing structure, contractors, and throughput capacity of the project.
Nevertheless, if everything goes according to plan, this Damerjog-Dewele system might divert a substantial amount of Ethiopia’s fuel supply from road tankers to pipelines.
Ethiopia in Focus: Conflict, Politics & Aviation
What Happened at Mekelle Airport?
Check out the latest developments surrounding Tigray forces and Ethiopian Airlines flights.
Who Are the Seven Armed Groups?
Find out about the alliance challenging Abiy Ahmed and what comes next.
How Did Africa Benefit From BRICS?
Uncover how South Africa, Egypt, Ethiopia, and Nigeria gained from the summit.
What Happened During the Monastery Ceremony?
See what happened when a landslide struck worshippers during the religious ceremony.
Which African Airline Should You Choose?
Compare Ethiopian Airlines, Kenya Airways, and RwandAir to understand their differences.
