Nigerian billionaire Aliko Dangote has committed to financing a $660 million fuel pipeline project designed to link the port of Damerjog in Djibouti to a distribution hub in Dewele, Ethiopia. The initiative, which spans 120 kilometers, is slated to become operational within the next 18 months.
Ethiopian Prime Minister Abiy Ahmed noted that the joint venture is projected to reduce the transit time for fuel shipments to Addis Ababa from five days to a single day. The pipeline will feature storage capacity for 400 million liters and will facilitate the transport of diesel, petrol, and jet fuel.
During the project's ground-breaking ceremony, Dangote emphasized that the infrastructure would bolster Ethiopia's energy security and improve the resilience of its supply chain. As a landlocked nation, Ethiopia depends on Djibouti for the majority of its petroleum imports. Officials expect the pipeline to alleviate strain on existing transport networks, benefiting sectors such as agriculture, aviation, and construction, while simultaneously boosting Djibouti’s port activity and tax revenue.
This investment aligns with Dangote’s broader strategy to expand his industrial footprint across the continent. The billionaire, who operates a major oil refinery in Nigeria and a significant cement production business, is also planning a new refinery project in Lamu, Kenya.
Source: BBC News
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