Dangote funds 660 million dollar Ethiopia Djibouti fuel pipeline

Nigerian billionaire Aliko Dangote has announced that he is helping to finance a new 660 million dollar fuel pipeline connecting Ethiopia and Djibouti. The infrastructure project is designed to improve energy security and streamline the supply chain for petroleum products across the region. It is expected to commence operations within eighteen months of the announcement.

The scheme includes a 120 kilometre pipeline linking Damerjog port in Djibouti to a distribution facility in Dewele, Ethiopia. The project will also feature storage capacity of approximately 400 million litres. The initial phase will focus on transporting key petroleum products, including jet fuel, diesel and petrol. Ethiopian Prime Minister Abiy Ahmed stated that the new route would reduce the time required to move fuel from the port to Addis Ababa from five days to just one.

Landlocked Ethiopia relies heavily on Djibouti for imports, and the new infrastructure aims to alleviate pressure on existing transport systems that support sectors such as aviation, agriculture and construction. Djibouti is also anticipated to benefit from increased port activity, job creation and higher government revenues. Dangote, who made his fortune in the cement industry, described the project as a means to strengthen Ethiopia’s energy resilience.

This investment forms part of Dangote’s broader expansion of infrastructure and manufacturing operations across Africa. His cement business has an annual production capacity of about 55 million tonnes. Meanwhile, his Nigerian oil refinery currently processes 700,000 barrels of crude a day and is seeking to double that capacity to 1.4 million barrels. The refinery recently listed 4.1 billion ordinary shares on the Nigerian stock exchange to raise approximately 1.63 billion dollars. Additionally, the company is set to break ground next week on a proposed 700,000 barrel a day refinery in Lamu, Kenya.