The 120-kilometre cross-border pipeline will link Damerjog in Djibouti with Dewele in Ethiopia, backed by major storage facilities and an investment designed to strengthen energy security, cut logistics costs and deepen regional integration.
By Ajong Mbapndah L
Ethiopia and Djibouti have joined forces with the Dangote Group on a $660 million petroleum infrastructure project that will establish a new refined petroleum products pipeline between the two neighbouring Horn of Africa countries.
The project was announced on September 24 during Ethiopian Prime Minister Abiy Ahmed’s visit to Djibouti, where he appeared alongside Djiboutian President Ismail Omar Guelleh and Nigerian industrialist Aliko Dangote. It will involve the construction of a 120-kilometre pipeline connecting Damerjog in Djibouti with Dewele in Ethiopia.
The project will be developed through a partnership between Ethiopian Investment Holdings and the Dangote Group, with storage terminals planned at both ends of the pipeline. Reuters reported that the infrastructure will include approximately 375,000 cubic metres of storage capacity at Damerjog and 800,000 cubic metres at Dewele. The project is expected to become operational within 18 months.
Prime Minister Abiy described the investment as an important step towards strengthening the Ethiopia-Djibouti economic corridor, which serves as a critical trade and logistics lifeline for landlocked Ethiopia.
“Together with President Ismail Omar Guelleh and Aliko Dangote, today we announce a major strategic investment connecting Damerjog in Djibouti to Dewele in Ethiopia,” Abiy said in remarks shared on social media and subsequently highlighted by Silabat Manaye Dessalegn.
According to Abiy, the infrastructure is expected to reduce logistics costs and delays while strengthening energy security and improving the efficiency and resilience of the Ethiopia-Djibouti corridor. He presented the project as part of a broader push towards regional integration and African-led investment in major infrastructure.
For Ethiopia, the pipeline offers the prospect of reducing reliance on road transportation for petroleum products moving through Djibouti. The project could provide a more efficient supply route while strengthening strategic fuel reserves for one of Africa’s largest and fastest-growing markets.
The scale of the planned storage infrastructure is also significant. Combined capacity at Damerjog and Dewele is expected to exceed one million cubic metres, creating a substantial petroleum storage and distribution system along the corridor.
President Guelleh placed the project within a wider African debate about energy security, industrialisation and the continent’s continued dependence on imported refined petroleum products.
Guelleh said Africa must move away from a model in which it exports raw energy resources only to import refined products at prices determined elsewhere. He described energy independence as an important foundation for broader economic independence and argued that African countries need infrastructure capable of connecting production, processing and markets.
The Djiboutian leader also stressed the importance of developing African technical expertise alongside physical infrastructure, saying the people who operate and maintain major projects must acquire the skills required to sustain them.
“A pipeline we cannot maintain ourselves is not independence,” Guelleh said.
Beyond petroleum transportation, the project represents another major expansion of Dangote’s investment footprint in East Africa. The Dangote Group is separately pursuing a $4 billion fertiliser-related investment in Ethiopia that includes associated energy and industrial infrastructure, according to Reuters.
The partnership also underscores the increasingly prominent role of African private capital in financing strategic infrastructure across the continent. Ethiopia brings a large domestic market, while Djibouti provides the port and logistics infrastructure through which much of Ethiopia’s international trade moves. Dangote brings capital and extensive industrial experience developed through major investments across Africa.
For Djibouti, the pipeline could further reinforce the country’s position as a logistics and energy gateway to Ethiopia and the wider Horn of Africa. For Ethiopia, it promises a more secure and efficient petroleum supply system as the country expands its industrial base and infrastructure.
The project also carries wider implications for African regional integration. Guelleh argued that initiatives such as the African Continental Free Trade Area will ultimately require physical infrastructure — including ports, railways, roads and pipelines — capable of moving goods and energy efficiently between African markets.
If delivered within the projected 18-month timeframe, the Damerjog-Dewele pipeline would stand as one of the most consequential recent infrastructure investments along the Ethiopia-Djibouti corridor, bringing together two governments and one of Africa’s largest private industrial groups around a project centred on energy security, trade efficiency and regional connectivity.
