Ethiopia, Djibouti Presidents Hail Dangote’s $660 Million Oil Terminal, Pipeline Project

–        Describe project as game-changer for regional trade, energy security

 

Peter Uzoho

 

Prime Minister of Ethiopia, Dr. Abiy Ahmed, and President of the Republic of Djibouti, Ismaïl Omar Guelleh, have hailed Dangote Group’s $660 million Damarjog-Dewele Oil Terminal and Pipeline Project as a transformative investment that will strengthen regional integration, improve energy security, create jobs, and accelerate economic growth across the Horn of Africa.

The two leaders spoke at the ground-breaking ceremony of the project held at the Damerjog Industrial Development Free Trade Zone in Djibouti. They praised the vision and commitment of African industrialist and President/Chief Executive of Dangote Industries Limited, Aliko Dangote, for championing one of the region’s most significant privately funded energy infrastructure investments.

A statement by Dangote Group said the project comprised a modern 120-kilometre multiproduct pipeline linking marine and coastal storage facilities at Damarjog in Djibouti with inland storage and distribution facilities at Dewele in Ethiopia.

Upon completion, it will facilitate the efficient transportation of refined petroleum products, enhance supply chain reliability, and support the growing energy needs of Ethiopia and the wider region.

Guelleh described the project as a milestone in Djibouti’s ambition to become a leading logistics, industrial, and energy hub for Africa.

He said, “Today marks an important chapter in Djibouti’s journey toward becoming a premier centre for logistics, energy, and industrial development.

“The Damarjog-Dewele Pipeline Project is not merely infrastructure; it is an investment in the future prosperity of our region.”

According to the Djiboutian leader, the project will stimulate economic activity, expand port operations, attract new investments, and create thousands of direct and indirect employment opportunities.

Guelleh added, “This investment will generate significant value for Djibouti through increased trade volumes, stronger commercial activity, and enhanced investor confidence. It will create jobs, support local businesses, and further strengthen our position as a critical gateway connecting regional economies.

“We are proud to partner with the Dangote Group in delivering a project that demonstrates the strength of African-led investment and practical African solutions to African challenges.”

Ahmed described the project as a strategic infrastructure development that will significantly strengthen Ethiopia’s energy security while supporting the country’s industrialisation agenda.

He stated, “Ethiopia’s continued economic expansion depends on reliable and efficient access to energy resources. This pipeline will provide a modern, dependable, and cost-effective system for transporting refined petroleum products into the country, thereby enhancing our energy security and reducing supply-chain vulnerabilities.”

The Ethiopian leader said the project would eliminate transportation bottlenecks, improve efficiency within the petroleum distribution network, and ensure a more stable supply of fuel for key sectors of the economy.

He explained, “The impact of this investment extends beyond the energy sector. Reliable access to petroleum products will support aviation, transportation, agriculture, manufacturing, construction, and broader industrial development.

“It will improve product quality control, reduce losses associated with long-distance transportation, and enhance the competitiveness of our economy.”

Ahmed also emphasised that the project reflected the longstanding economic partnership between Ethiopia and Djibouti.

He stated, “The relationship between Ethiopia and Djibouti has always been anchored on shared prosperity and mutual development.

“This pipeline is another demonstration of our commitment to regional cooperation and the development of infrastructure that serves the interests of our people…It illustrates how African nations can work together to unlock opportunities, improve connectivity, and deliver sustainable development.”

Speaking at the ceremony, Dangote said the Damarjog-Dewele Pipeline Project aligned with the group’s broader vision of building transformative infrastructure that supports Africa’s economic development and self-sufficiency.

He stated, “This project is designed to enhance energy security, improve supply-chain efficiency, and create sustainable economic value for both Djibouti and Ethiopia. It underscores our commitment to investing in infrastructure that enables African countries to maximize their economic potential.”

Dangote explained that the project would boost economic activity in Djibouti while guaranteeing a more reliable supply of refined petroleum products to Ethiopia.

According to him, “Djibouti will benefit from increased port activity, higher revenues, and new employment opportunities. Ethiopia will gain stronger energy security and fewer logistics bottlenecks. It is truly a win-win outcome for both countries, while local businesses across the value chain will benefit from expanded economic activity.”

Dangote stated that the Djibouti corridor currently served as the primary route for Ethiopia’s imports and exports, including petroleum products, making it one of the most strategic economic corridors in Africa.

He added that the pipeline would substantially improve the safety and efficiency of petroleum transportation by reducing dependence on long-distance tanker movements, easing congestion, lowering operational risks, and minimising the potential for product losses and environmental incidents.

Beyond its direct economic impact, the project is expected to create thousands of jobs during construction and operation while facilitating skills transfer and supporting local contractors, suppliers, transport operators, and host communities.

The Damarjog-Dewele Pipeline Project forms part of Dangote Group’s broader Vision 2030 strategy, under which the group plans to invest $50 billion across Africa in critical industrial and energy infrastructure aimed at boosting regional trade, industrialisation, and economic self-sufficiency.

Dangote reiterated the group’s commitment to reducing Africa’s dependence on imports and encouraging local production.

He said, “Our vision is to support African countries in becoming self-sufficient in products for which they possess the raw materials, market demand, and strategic necessity. This is Africa building the infrastructure it needs to accelerate development and deepen intra-African trade.”

The project further strengthens Dangote Group’s position as a leading investor in Africa’s energy and industrial sectors, building on the success of the Dangote Petroleum Refinery and other strategic investments across the continent.