Salaam Group’s Fuelstor breaks ground on $160 million energy terminal in Djibouti

Watchdog Uganda about 1 hour 2 mins read

DAMERJOG, Djibouti — Fuelstor, a strategic energy and logistics infrastructure company, owned by Salaam Group, has broken ground on a $160 million multi-product terminal in Damerjog, a high-stakes investment designed to anchor Djibouti’s position as the primary energy and logistics artery for East Africa.
Salaam Group’s portfolio includes Salaam Bank Uganda, Salaam Investment Bank, Salaam Microfinance Bank in Kenya, and operations in South Sudan and Malaysia.

The newly launched facility, which represents a DJF 30 billion capital injection, spans 22 hectares and is engineered as an integrated platform for the storage, trading and redistribution of fuel, liquefied petroleum gas and edible oil.

With a projected capacity of 400,000 metric tons, the terminal arrives at a critical juncture for regional supply chain security.

The project signals a shift toward sophisticated multimodal infrastructure, leveraging Djibouti’s strategic maritime access to serve the growing inland demand in Ethiopia and the wider Horn of Africa.

“This project represents a defining milestone for Fuelstor and a significant step forward for the region’s energy and logistics landscape,” said Houssein Ahmed Houmed, general manager of Fuelstor. “Fuelstor Terminal is uniquely positioned to become a key gateway connecting global supply markets to growing demand across East Africa.”

The construction phase, led by the international engineering firm Somagec, is expected to catalyze local economic activity and create hundreds of jobs. For Djibouti, the terminal is more than an industrial site; it is a centerpiece of the national ambition to modernize the logistics ecosystem and provide a resilient buffer against global supply fluctuations.

Backed by the Salaam Group, the initiative reflects a long-term commitment to infrastructure-led economic transformation.

Once operational, the terminal will integrate logistics and trading capabilities to streamline the flow of essential commodities across the continent’s most active trade routes.

Salaam Group’s portfolio includes Salaam Bank Uganda, Salaam Investment Bank, Salaam Microfinance Bank in Kenya, and operations in South Sudan and Malaysia.