Dangote Group has partnered with Ethiopia and Djibouti to develop a $660 million refined petroleum products pipeline designed to improve fuel transportation and strengthen energy security along the strategic East African corridor.
The 120-kilometre Damarjog-Dewele pipeline will connect coastal storage facilities in Djibouti with inland storage and distribution infrastructure in Ethiopia. The project is expected to become operational within 18 months.
The development will include about 375,000 cubic metres of petroleum storage capacity in Djibouti and another 800,000 cubic metres in Ethiopia. The infrastructure is expected to reduce reliance on long-distance tanker transportation, easing congestion, logistics costs and transportation risks.
Ethiopia, a landlocked country, depends heavily on Djibouti for imports, including petroleum products. The pipeline is therefore expected to provide a more efficient route for fuel supplies while supporting sectors such as transportation, agriculture, manufacturing, aviation and construction.
For Djibouti, the project is expected to increase port activity, attract investment and strengthen its position as a regional logistics and energy hub.
The investment also expands Dangote Group’s growing footprint across Africa, adding another major energy infrastructure project to its portfolio beyond Nigeria.
The pipeline is expected to support regional trade and supply-chain resilience while demonstrating the growing role of private African capital in financing strategic infrastructure across the continent.
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