The $660 million Damarjog-Dewele Oil Terminal and Pipeline Project being developed by Dangote Group in Djibouti and Ethiopia is expected to improve fuel supply, cut transportation bottlenecks and strengthen trade links across the Horn of Africa.
Ethiopian Prime Minister, Dr Abiy Ahmed, and Djibouti President, Ismaïl Omar Guelleh, said this at the groundbreaking ceremony of the project at the Damerjog Industrial Development Free Trade Zone in Djibouti.
The project entails the construction of a 120-kilometre multiproduct pipeline linking marine and coastal petroleum storage facilities at Damarjog in Djibouti with inland storage and distribution facilities at Dewele in Ethiopia.
The two leaders commended Dangote Industries Limited President and Chief Executive, Aliko Dangote, for the investment, describing the project as an important infrastructure development for regional energy security and economic integration.
Guelleh said the project would support Djibouti’s ambition to emerge as a major logistics, industrial and energy centre on the continent.
“Today marks an important chapter in Djibouti’s journey toward becoming a premier centre for logistics, energy, and industrial development,” he said.
“The Damarjog-Dewele Pipeline Project is not merely infrastructure; it is an investment in the future prosperity of our region.”
According to him, the project would increase trade volumes, expand port operations and stimulate commercial activity while attracting new investment to Djibouti.
“This investment will generate significant value for Djibouti through increased trade volumes, stronger commercial activity, and enhanced investor confidence,” Guelleh said.
He added that the project would create jobs, support local businesses and consolidate Djibouti’s position as a gateway connecting economies in the region.
“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,” the president said.
For Ethiopia, Abiy said the project would provide a more reliable and efficient means of transporting refined petroleum products into the landlocked country.
“Ethiopia’s continued economic expansion depends on reliable and efficient access to energy resources,” he said.
“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 prime minister said improved fuel logistics would benefit a wide range of economic activities, including aviation, transportation, agriculture, manufacturing and construction.
“The impact of this investment extends beyond the energy sector,” Abiy said.
“Reliable access to petroleum products will support aviation, transportation, agriculture, manufacturing, construction, and broader industrial development.”
He said the pipeline would also improve product quality control, reduce losses associated with long-distance transportation and strengthen the competitiveness of the Ethiopian economy.
Abiy described the project as another demonstration of the economic partnership between Ethiopia and Djibouti.
“The relationship between Ethiopia and Djibouti has always been anchored on shared prosperity and mutual development,” he said.
“This pipeline is another demonstration of our commitment to regional cooperation and the development of infrastructure that serves the interests of our people.”
The Ethiopian leader added that the project showed how African countries could collaborate on infrastructure to improve connectivity and promote sustainable development.
Dangote said the investment was part of his group’s long-term commitment to developing infrastructure that would help African countries maximise their economic potential.
“This project is designed to enhance energy security, improve supply-chain efficiency, and create sustainable economic value for both Djibouti and Ethiopia,” he said.
He said the project would produce economic benefits for both countries, with Djibouti gaining from increased port activity and revenue, while Ethiopia would benefit from more dependable fuel supplies and fewer logistics constraints.
“Djibouti will benefit from increased port activity, higher revenues, and new employment opportunities. Ethiopia will gain stronger energy security and fewer logistics bottlenecks,” Dangote said.
“It is truly a win-win outcome for both countries, while local businesses across the value chain will benefit from expanded economic activity.”
Dangote noted that the Djibouti corridor was currently the primary route for Ethiopia’s imports and exports, including petroleum products, making it a critical trade corridor for the country.
He said the pipeline would reduce reliance on long-distance tanker transportation and consequently improve the safety and efficiency of fuel distribution.
According to him, it would ease congestion, lower operational risks and minimise product losses and possible environmental incidents associated with the movement of petroleum products by road.
The project is also expected to generate thousands of direct and indirect jobs during construction and operation.
Dangote Group said the investment would further create opportunities for local contractors and suppliers while supporting transport operators, host communities and skills development.
The pipeline is part of Dangote Group’s Vision 2030 strategy, which envisages investments of $50 billion across Africa in critical industrial and energy infrastructure.
The strategy is designed to support industrialisation, regional trade and greater economic self-sufficiency across the continent.
Dangote said the group remained committed to reducing Africa’s dependence on imports through investments that promote local production.
“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,” he said.
“This is Africa building the infrastructure it needs to accelerate development and deepen intra-African trade.”
The Damarjog-Dewele project adds to Dangote Group’s growing portfolio of energy and industrial investments across Africa, including the Dangote Petroleum Refinery in Nigeria.
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