The Prime Minister of Ethiopia, Dr. Abiy Ahmed, and the President of Djibouti, Ismaïl Omar Guelleh, have described Dangote Group’s $660 million Damarjog-Dewele Oil Terminal and Pipeline Project as a transformative investment that will strengthen regional integration, enhance energy security and accelerate economic growth across the Horn of Africa.
The leaders spoke at the groundbreaking ceremony of the project at the Damerjog Industrial Development Free Trade Zone in Djibouti, where they commended President and Chief Executive of Dangote Industries Limited, Aliko Dangote, for championing the privately funded energy infrastructure project.
The project comprises a 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, the pipeline will facilitate the transportation of refined petroleum products, improve supply-chain reliability and support the growing energy needs of Ethiopia and the wider region.
President Guelleh described the project as a major milestone in Djibouti’s ambition to become a leading logistics, industrial and energy hub in Africa.
He said the investment would stimulate economic activity, expand port operations, attract new investments and create thousands of direct and indirect employment opportunities.
“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,” he said.
Guelleh added that the project would increase trade volumes, strengthen commercial activity and enhance investor confidence, while supporting local businesses and further positioning Djibouti as a 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,” he added.
Similarly, Prime Minister Abiy described the project as strategic infrastructure that would strengthen Ethiopia’s energy security and support its industrialisation agenda.
He said reliable and efficient access to energy resources remained critical to Ethiopia’s economic expansion.
“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,” Abiy said.
According to him, the project would eliminate transportation bottlenecks, improve efficiency in the petroleum distribution network and ensure a more stable fuel supply for key sectors of the Ethiopian economy.
He noted that reliable access to petroleum products would support aviation, transportation, agriculture, manufacturing, construction and broader industrial development.
The Prime Minister also said the project would improve product quality control, reduce losses associated with long-distance transportation and enhance the competitiveness of Ethiopia’s economy.
Abiy described the pipeline as another demonstration of the longstanding economic partnership between Ethiopia and Djibouti, noting that both countries remained committed to infrastructure development that promotes shared prosperity.
Speaking at the ceremony, Dangote said the project aligns with the Group’s broader vision of developing transformative infrastructure to support Africa’s economic development and self-sufficiency.
“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,” he said.
Dangote explained that Djibouti would benefit from increased port activity, higher revenues and new employment opportunities, while Ethiopia would gain stronger energy security and reduced logistics bottlenecks.
He said the project would also benefit businesses across the value chain through increased economic activity.
According to Dangote, the Djibouti corridor currently serves as the primary route for Ethiopia’s imports and exports, including petroleum products, making it one of the strategic economic corridors in Africa.
He said the pipeline would improve the safety and efficiency of petroleum transportation by reducing dependence on long-distance tanker movements, easing congestion, lowering operational risks and minimising potential product losses and environmental incidents.
The project is also 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.
The strategy is aimed at boosting regional trade, industrialisation and economic self-sufficiency across the continent.
Dangote reiterated the Group’s commitment to reducing Africa’s dependence on imports and promoting 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. This is Africa building the infrastructure it needs to accelerate development and deepen intra-African trade,” he said.
The project further expands Dangote Group’s investments in Africa’s energy and industrial sectors, building on the Dangote Petroleum Refinery and other strategic investments across the continent.
