A $660 million fuel pipeline linking Ethiopia and Djibouti is set to transform the movement of petroleum products between the two countries, with Nigerian billionaire Aliko Dangote among those helping to finance the project.
The 120-kilometre pipeline will connect Djibouti’s Damerjog Port to a fuel distribution facility in Dewele, Ethiopia, and will include storage capacity of about 400 million litres.
The project is expected to begin operations within 18 months.
Ethiopian Prime Minister Abiy Ahmed said it will cut the time needed to transport fuel from Djibouti to Addis Ababa from about five days to one.
The first phase will carry jet fuel, diesel and petrol.
Speaking at the groundbreaking ceremony on September 25, 2026, Africa's richest man, Dangote, said the project would strengthen Ethiopia’s energy security and make its fuel supply chain more resilient.
Landlocked Ethiopia relies heavily on Djibouti’s port for imports, including petroleum products.
The new pipeline is expected to ease pressure on existing transport networks serving sectors such as transport, aviation, agriculture and construction.
Djibouti is also expected to benefit from increased port activity, job creation and higher government revenues.
The project forms part of Dangote’s wider expansion of infrastructure and manufacturing investments across Africa.
Dangote Cement has production capacity of about 55 million tonnes a year, while his Nigerian oil refinery currently has capacity to process 700,000 barrels of crude oil per day and is seeking to double this to 1.4 million barrels.
In Kenya, Dangote is due to break ground next week on a proposed 700,000-barrel-a-day crude oil refinery in Lamu.