Africa's wealthiest man, Aliko Dangote, announced a $160 million pipeline project connecting Djibouti and Ethiopia, which will enhance the movement of refined petroleum products between the two countries. This Damarjog-Dewele pipeline project, a partnership between Dangote Group and Ethiopian Investment Holdings, had its groundbreaking ceremony at the Djibouti Damerjog Industrial Park. The initiative aims to strengthen Ethiopia's energy security through improved petroleum supply, while also boosting Djibouti's port activity, revenues, and job creation.
The project involves linking marine and coastal storage facilities at Damarjog in Djibouti with inland storage and distribution facilities at Dewele in Ethiopia, creating a modern multiproduct pipeline network. This infrastructure development, spanning approximately 80 hectares within the Damerjog Industrial Park, will feature a storage capacity of 375,000 cubic meters and a transit capacity of up to 5 million tons of petroleum products per year. The facility will connect to the Damerjog-Nagad railway line and the Damerjog Liquid Bulk Port, ensuring efficient logistics.
Dangote emphasized that the pipeline will provide Ethiopia with greater energy security, reduce logistics challenges associated with petroleum transportation, and improve product quality control. It is expected to support key sectors such as industry, aviation, transport, agriculture, and construction. For landlocked Ethiopia, this project offers a crucial alternative to heavy road transport, cutting logistics costs, easing highway congestion, and reducing its carbon footprint. Additionally, the project will create jobs during construction, support permanent technical and administrative roles, and transfer skills to local populations.
Beyond direct economic benefits, the project will improve the safety of petroleum transportation by reducing long-distance tanker traffic, thereby easing congestion, lowering road risks, and decreasing the possibility of spills and losses. This development is part of Dangote Group’s broader Vision 2030 strategy, which includes a $50 billion investment across Africa, focusing on reducing import dependence and increasing local production of goods with raw materials and market demand on the continent. The group also aims to expand its Lagos refinery capacity and is developing other extensive pipeline networks across Africa, including a 2,650-kilometer pipeline connecting Namibia, Botswana, and South Africa, with a budget exceeding $3.5 billion.
