Aliko Dangote’s Dangote Group is putting more than $600 million into a new fuel pipeline linking Ethiopia and Djibouti, opening another front in the conglomerate’s growing African infrastructure push.
The $660 million Damarjog-Dewele project will connect Djibouti’s coastal fuel facilities to Ethiopia through a 120-kilometre multi-product pipeline.
The system will also include large storage terminals at both ends. The project is being developed by Dangote Group and Ethiopian Investment Holdings.
It is expected to reduce the heavy reliance on trucks moving fuel along the Ethiopia-Djibouti corridor, cutting transport delays and logistics costs.
Storage Capacity
The storage facilities will have more than one million cubic metres of combined capacity, with the pipeline providing a more direct route into Ethiopia.
Ethiopian officials say the project could cut fuel transit time from about five days to 24 hours.
For Dangote, the investment fits a strategy of building African supply chains around energy, manufacturing and logistics.
The group has already committed more than $4 billion to Ethiopia, including a major fertiliser project and supporting infrastructure.