4 weeks ago
A new $660 million (£500 million) fuel pipeline and storage initiative is set to link Ethiopia and Djibouti, following an agreement between the two nations and Nigerian billionaire Aliko Dangote.
The development features a 120-kilometer (75-mile) pipeline stretching from the Damerjog port in Djibouti to a distribution depot in Dewele, Ethiopia. Additionally, the infrastructure will accommodate a storage capacity of approximately 400 million liters. The system is projected to become operational within 18 months.
Ethiopian Prime Minister Abiy Ahmed highlighted that the pipeline will slash the transit time for fuel moving from Djibouti's port to Addis Ababa, the capital of Ethiopia, from five days down to just one. During its initial phase, the pipeline will carry key petroleum products, such as petrol, diesel, and jet fuel. At the groundbreaking event, Dangote remarked that the venture would bolster the energy security of Ethiopia and enhance the resilience of its fuel supply chain.
Because Ethiopia is landlocked, it depends heavily on Djibouti's port facilities for importing goods, including petroleum. This new infrastructure aims to alleviate strain on current transport networks that service vital sectors like construction, agriculture, aviation, and transport. Meanwhile, Djibouti stands to gain from heightened port operations, employment opportunities, and increased government revenue.
This project aligns with Dangote's broader strategy to scale up manufacturing and infrastructure enterprises across the African continent. His company, Dangote Cement,
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