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| L-R, Ethiopia Prime Minister Abiy Ahmed; President/CE, Dangote Industries Limited, Aliko Dangote; President of the Republic of Djibouti, Ismail Omar Guelleh, at the Dangote Oil & Gas Trading Damerjog, Djibouti, groundbreaking ceremony of the Damerjog Oil Terminal and Pipeline Damerjog–Dewele Project in the Federal Republic of Djibouti on Thursday, September 24, 2026. |
A major energy infrastructure project backed by Nigerian industrialist Aliko Dangote is set to reshape the movement of refined petroleum products between Djibouti and Ethiopia, with the two countries looking to strengthen trade, energy security and economic activity along one of the Horn of Africa’s most important commercial corridors.
The $660 million Damarjog-Dewele Oil Terminal and Pipeline Project, which broke ground at the Damerjog Industrial Development Free Trade Zone in Djibouti, will connect coastal petroleum storage facilities in Damarjog to inland storage and distribution infrastructure at Dewele in Ethiopia.
The project includes a 120-kilometre multiproduct pipeline designed to transport refined petroleum products more efficiently into Ethiopia, potentially reducing some of the logistical challenges associated with moving fuel over long distances by road.
Ethiopian Prime Minister Abiy Ahmed and Djibouti President Ismaïl Omar Guelleh, who spoke at the groundbreaking ceremony, described the project as an important development for their respective economies and the wider region.
For Ethiopia, which relies heavily on the Djibouti corridor for imports and exports, the pipeline is expected to provide a more dependable route for refined petroleum products. Abiy said improved access to fuel would support sectors including transportation, aviation, agriculture, manufacturing and construction.
He also pointed to the potential reduction in transportation bottlenecks and losses associated with long-distance movement of petroleum products.
For Djibouti, the project fits into the country’s ambition to expand its role as a regional logistics and energy hub. President Guelleh said increased petroleum-related activity could generate additional port operations, commercial opportunities, investment and employment.
Dangote, whose group is financing the project, said the investment forms part of a wider strategy to develop infrastructure capable of supporting African economic integration and reducing dependence on imported industrial capacity.
The project is also expected to create employment during construction and operation while providing opportunities for local contractors, suppliers, transport operators and businesses connected to the petroleum value chain.
Its significance extends beyond the two countries. The Djibouti corridor is already a critical trade route for landlocked Ethiopia, making improvements to energy logistics potentially relevant to businesses and industries dependent on dependable fuel supplies.
The pipeline also comes as Dangote Group pursues its broader Vision 2030 investment strategy across Africa, with plans focused on industrial and energy infrastructure.
At a time when African countries are seeking stronger intra-African trade links and more resilient supply chains, the Damarjog-Dewele project illustrates how infrastructure connecting neighbouring economies can become a foundation for wider commercial activity.
For Djibouti and Ethiopia, the immediate question is how effectively the new infrastructure can translate into more reliable fuel distribution and increased economic activity.
For Dangote, it represents another major step in a strategy that increasingly places African industrial infrastructure at the centre of the group’s expansion.
