Ethiopian, Djibouti Leaders Commend Dangote’s $660m Pipeline Project

Prime Minister of Ethiopia, Dr Abiy Ahmed, and the President of the Republic of Djibouti, Ismaïl Omar Guelleh, have hailed the Dangote Group’s $660 million Damarjog-Dewele Oil Terminal and Pipeline Project as a transformative investment that will strengthen regional integration, improve energy security, create jobs, and accelerate economic growth across the Horn of Africa.

The two leaders spoke at the groundbreaking of the project held at the Damerjog Industrial Development Free Trade Zone in Djibouti, where they praised the vision and commitment of African industrialist and president/chief executive of Dangote Industries Limited, Aliko Dangote, for championing one of the region’s most significant privately funded energy infrastructure investments.

The project comprises a modern 120-kilometre multiproduct pipeline linking marine and coastal storage facilities at Damarjog in Djibouti with inland storage and distribution facilities at Dewele in Ethiopia. Upon completion, it will facilitate the efficient transportation of refined petroleum products, enhance supply chain reliability, and support the growing energy needs of Ethiopia and the wider region.

President Guelleh described the project as a milestone in Djibouti’s ambition to become a leading logistics, industrial, and energy hub for 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,” Guelleh said.

According to the Djiboutian leader, the project will stimulate economic activity, expand port operations, attract new investments, and create thousands of direct and indirect employment opportunities.

Ethiopian Prime Minister Abiy Ahmed described the project as a strategic infrastructure development that will significantly strengthen Ethiopia’s energy security while supporting the country’s industrialisation agenda.

“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,” Prime Minister Abiy stated.

He noted that the project would eliminate transportation bottlenecks, improve efficiency within the petroleum distribution network, and ensure a more stable supply of fuel for key sectors of the Ethiopian economy.

Speaking, president and chief executive of Dangote Industries Limited, Aliko Dangote, said the Damarjog-Dewele Pipeline Project aligns with the Group’s broader vision of building transformative infrastructure that supports 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 maximize their economic potential,” Dangote said.

He explained that the project would boost economic activity in Djibouti while guaranteeing a more reliable supply of refined petroleum products to Ethiopia.

Dangote noted that the Djibouti corridor currently serves as the primary route for Ethiopia’s imports and exports, including petroleum products, making it one of the most strategic economic corridors in Africa.

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

Beyond its direct economic impact, the project is expected to create thousands of jobs during construction and operation while facilitating skills transfer and supporting local contractors, suppliers, transport operators, and host communities.

The Damarjog-Dewele Pipeline Project forms part of Dangote Group’s broader Vision 2030 strategy, under which the Group plans to invest $50 billion across Africa in critical industrial and energy infrastructure aimed at boosting regional trade, industrialisation, and economic self-sufficiency.