Aliko Dangote, identified as Africa’s richest man, has announced financial backing for a fuel pipeline project connecting Ethiopia and Djibouti at an estimated cost of $660m. The infrastructure will span 120 kilometers and link Djibouti’s Damerjog port to a distribution facility in Dewele, Ethiopia, with storage facilities capable of holding approximately 400 million litres of fuel.
The project is projected to become operational within 18 months. According to Ethiopian Prime Minister Abiy Ahmed, the pipeline will significantly accelerate fuel transport to the Ethiopian capital Addis Ababa, reducing transit time from five days to a single day. Initially, the pipeline will transport major petroleum products including jet fuel, diesel, and petrol.
Dangote stated at the ground-breaking ceremony that the initiative would enhance Ethiopia’s energy security and create a more resilient fuel supply chain. The landlocked nation currently depends on Djibouti’s port for substantial portions of its imports, particularly petroleum products. By establishing direct pipeline infrastructure, the project is expected to relieve congestion on existing transport networks that serve industries including transportation, aviation, agriculture, and construction. Djibouti stands to gain through expanded port operations, employment opportunities, and increased government revenue.
The pipeline development represents part of Dangote’s broader investment strategy across African markets. His cement company operates with annual production capacity of roughly 55 million tonnes, while his Nigerian oil refinery currently processes 700,000 barrels daily with plans to expand to 1.4 million barrels daily. The refinery recently listed shares on Nigeria’s stock exchange in a capital-raising effort. Additional expansion plans include a proposed 700,000-barrel-a-day refinery in Kenya’s Lamu region, with ground-breaking ceremonies scheduled for the following week.
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