Dangote Backs $660 Million Ethiopia-Djibouti Petroleum Pipeline Project

Nigerian industrialist Aliko Dangote is backing a $660 million refined petroleum products pipeline linking Ethiopia and Djibouti, in a project expected to improve fuel transportation and strengthen energy security along the key regional trade corridor.

The project, announced on Thursday by Ethiopian Investment Holdings, will establish a 120-kilometre pipeline connecting the Damerjog port area in Djibouti to a distribution and storage facility at Dewele in Ethiopia. The development is being undertaken through a partnership between Ethiopian Investment Holdings and the Dangote Group.

Pipeline to support Ethiopia's fuel supply

Landlocked Ethiopia relies heavily on Djibouti for access to imported goods, including petroleum products. The new pipeline is expected to provide an alternative to long-distance road transportation and improve the movement of fuel into the Ethiopian market.

The project will include storage infrastructure at both ends of the pipeline. Ethiopian state media reported that the facilities will provide substantial combined storage capacity for refined petroleum products.

The system is expected to become operational within approximately 18 months.

Ethiopian Prime Minister Abiy Ahmed said the investment would reduce logistics costs and delays while strengthening energy security and improving the efficiency of the Ethiopia-Djibouti corridor.

Dangote expands African infrastructure footprint

The pipeline forms part of Dangote Group's broader expansion across Africa, particularly in energy, manufacturing and infrastructure.

In Ethiopia, the group is also pursuing major industrial investments, including a fertiliser and energy-related development. The latest pipeline project adds petroleum transportation and storage infrastructure to Dangote's growing regional portfolio.

The development also comes as Dangote prepares to expand into Kenya's energy sector.

Lamu refinery project

Dangote is scheduled to break ground on a proposed 700,000-barrel-per-day oil refinery and petrochemical complex in Lamu, Kenya, on September 30, 2026.

The Kenyan project is expected to become one of the largest refinery developments in East Africa if completed as planned. Engineers India Limited has secured a contract worth more than $450 million to provide project management and engineering services for the development.

The Lamu project is part of Dangote's wider strategy of investing in large-scale industrial and energy infrastructure across the continent.

The Ethiopia-Djibouti pipeline, meanwhile, is expected to strengthen an important supply corridor linking the port of Djibouti with Ethiopia's inland distribution network, potentially reducing reliance on road-based fuel transportation.