Ethiopian Prime Minister Abiy Ahmed said Ethiopia and Djibouti, together with Nigerian businessman Aliko Dangote, have officiated the groundbreaking ceremony for a petroleum pipeline connecting the two countries.
In a Facebook post, the prime minister said the pipeline, which will have storage terminals at both ends, will be developed through a partnership between Ethiopian Investment Holdings and the Dangote Group. The project will connect Djibouti’s Damerjog port to Ethiopia’s Dewele.
According to him, the pipeline is expected to reduce logistics costs and delays while improving the efficiency and resilience of the Ethiopia–Djibouti trade corridor. It is also intended to strengthen Ethiopia’s energy security by improving the infrastructure for the transportation and storage of petroleum products, he further noted.
The project adds to Dangote’s growing investments in East Africa. In Ethiopia, the Dangote Group and Ethiopian Investment Holdings signed an agreement in August 2025 to develop a $2.5 billion urea fertilizer complex in Gode, Somali Region, with an annual production capacity of up to three million metric tonnes. The project includes associated infrastructure and a natural-gas pipeline.
Dangote’s planned East African oil refinery in Kenya is intended to expand the region’s petroleum-processing capacity and reduce reliance on imported refined fuel.
