Nigerian billionaire Aliko Dangote is backing a $660 million pipeline project that will transport refined petroleum products between Ethiopia and Djibouti.
The 120km pipeline will connect the port of Damerjog in Djibouti with a petroleum distribution facility in Dewele, Ethiopia, under an agreement announced by Ethiopian Investment Holdings.
The project is expected to be completed within 18 months and will include storage facilities at both ends of the pipeline.
Ethiopia, which does not have direct access to the sea, relies heavily on Djibouti for imports, including fuel and other petroleum products.
Ethiopian Prime Minister Abiy Ahmed said the pipeline would help cut transport costs and delays while improving the country’s energy security along the key trade corridor.
The investment forms part of Dangote Group’s broader expansion across Africa, with the conglomerate increasingly involved in infrastructure, manufacturing and energy projects beyond Nigeria.
In Ethiopia, the group is also developing a $4 billion fertiliser pipeline and power plant, alongside a polypropylene packaging facility.
Dangote is further expected to begin construction of a new 700,000-barrel-per-day refinery in Lamu, Kenya, adding to the group’s growing footprint in Africa’s energy sector.
The latest project highlights the increasing push for infrastructure that can strengthen regional trade and improve the movement of critical energy products across African markets.
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