Africa's richest man helps fund $660m fuel pipeline between Ethiopia and Djibouti

Nigerian billionaire Aliko Dangote has pledged financial support for a $660 million fuel pipeline linking Ethiopia and Djibouti, a project that will stretch 120 km from Djibouti’s Damerjog port to a distribution hub in Dewele, Ethiopia, and incorporate storage capacity of roughly 400 million litres. The joint venture between Dangote and the Ethiopian government aims to cut the transit time for petroleum products—jet fuel, diesel and petrol—from the port to Addis Ababa from five days to a single day, thereby bolstering Ethiopia’s energy security and creating jobs at Djibouti’s port.

The pipeline is expected to ease pressure on existing transport corridors that serve Ethiopia’s key sectors, including aviation, agriculture, construction and general logistics, by providing a more reliable and faster supply chain for fuel imports. Ethiopia, a landlocked nation, depends heavily on Djibouti’s port for its petroleum needs, and the new infrastructure will make the supply chain more resilient while stimulating economic activity in both countries. Djibouti stands to benefit from heightened port traffic, increased government revenues and new employment opportunities tied to the pipeline’s operation and ancillary services.

Dangote’s involvement reflects his broader strategy of expanding infrastructure and manufacturing across Africa. His conglomerate already operates Dangote Cement, with a 55 million‑tonne annual capacity, and runs a Nigerian oil refinery processing 700,000 barrels per day, a figure he plans to double to 1.4 million barrels. The refinery recently raised $1.63 billion by listing 4.1 billion shares on the Nigerian stock exchange, and Dangote’s firm is set to break ground on a 700,000‑barrel‑per‑day crude refinery in Kenya’s Lamu region next week, underscoring the scale of his continental investment push.

⚡ Effects Interpreter