Nigerian industrialist Aliko Dangote, in partnership with Ethiopia and Djibouti, is set to develop a $660 million refined petroleum products pipeline linking the two East African countries.
The project, announced on Thursday, September 24, 2026, will connect Damerjog in Djibouti with Dewele in Ethiopia through a 120-kilometre pipeline designed to improve the movement and storage of petroleum products along the strategic trade corridor.
The project is being developed through a partnership between Ethiopian Investment Holdings and the Dangote Group, with the announcement made during Ethiopian Prime Minister Abiy Ahmed’s visit to Djibouti alongside Djiboutian President Ismail Omar Guelleh and Dangote.
According to information disclosed by the Ethiopian Prime Minister’s office to Reuters, the infrastructure will include storage facilities at both ends of the pipeline. The planned storage capacity is approximately 375,000 cubic metres at Damerjog in Djibouti and 800,000 cubic metres at Dewele in Ethiopia, giving a combined capacity of about 1.175 million cubic metres.
The developers expect the pipeline to become operational within 18 months. It is intended to provide a more efficient route for transporting refined petroleum products from Djibouti’s coastal facilities into Ethiopia, which relies heavily on the Djibouti corridor for access to international trade.
The Ethiopian government said the project is expected to reduce logistics costs and delays along the Ethiopia-Djibouti transport corridor while improving the reliability and resilience of petroleum supply.
Prime Minister Abiy described the investment as part of efforts to strengthen regional integration and energy security, saying the project represents a broader investment in future economic growth with African investment playing a central role.
The pipeline is also expected to reduce dependence on long-distance road transportation of petroleum products. Moving larger volumes through a dedicated pipeline could reduce the number of fuel tankers using the busy corridor, potentially easing road congestion and lowering transportation risks.
For Dangote, the project represents another major expansion of his industrial investments outside Nigeria. The Dangote Group is already involved in other projects in Ethiopia, including a reported $4 billion fertiliser pipeline and power plant project, as well as a polypropylene packaging facility.
The announcement comes as Dangote continues expanding his interests across Africa’s energy and industrial sectors. His group is also preparing for a major refinery project in Kenya, where a 700,000-barrel-per-day crude oil refinery is planned in Lamu.
The Ethiopia-Djibouti pipeline is therefore expected to become an important piece of regional petroleum infrastructure, linking coastal storage and import facilities in Djibouti with inland distribution infrastructure in Ethiopia.
Beyond fuel transportation, the project is being presented by the participating governments and Dangote Group as an investment aimed at strengthening cross-border trade, improving supply-chain efficiency and supporting longer-term economic cooperation in the Horn of Africa.
With construction expected to be completed within about 18 months, the project could provide Ethiopia with a more reliable petroleum supply route while deepening the economic partnership between Ethiopia, Djibouti and Dangote’s Nigerian industrial group.
