Aliko Dangote’s expanding energy interests in East Africa are taking another step forward, with Dangote Group set to partner with Ethiopia and Djibouti on a $660 million petroleum products pipeline aimed at improving the movement and storage of refined fuel across the region.
The 120-kilometre pipeline will run between Damerjog in Djibouti and Dewele in Ethiopia, connecting large storage facilities at both locations. Damerjog is expected to have about 375,000 cubic metres of storage capacity, while Dewele will provide approximately 800,000 cubic metres. Combined, the facilities will hold about 1.175 million cubic metres of petroleum products.
The development is being undertaken through a partnership between Ethiopian Investment Holdings and Dangote Group, according to Ethiopian Prime Minister Abiy Ahmed, who confirmed the arrangement on X during a visit to Djibouti. Abiy made the announcement alongside Djiboutian President Ismail Omar Guelleh and Dangote.
A spokesperson in the Ethiopian Prime Minister’s office provided further details to Reuters on Thursday, September 24, 2026.
The pipeline is expected to become operational within 18 months and is intended to tackle logistical challenges along the Ethiopia-Djibouti transport corridor. According to the developers, the infrastructure will reduce transportation costs and delays while strengthening energy security and improving the resilience of petroleum supply chains serving both countries.
The project adds to Dangote Group’s established presence in Ethiopia, where the Nigerian conglomerate is already involved in a $4 billion fertiliser pipeline and power plant, as well as a polypropylene packaging facility.
Its East African energy portfolio is also extending into Kenya. Dangote and the Kenyan government are expected to break ground next week on a proposed crude oil refinery in Lamu with a planned processing capacity of 700,000 barrels per day.
Together, these investments span petroleum refining, energy infrastructure, fertiliser production and manufacturing, giving Dangote Group a growing industrial presence across several African markets.
The Ethiopia-Djibouti pipeline will add another strategic link to that network, connecting two neighbouring East African economies through dedicated infrastructure for the storage and movement of refined petroleum products.
The $660 million project further expands Dangote Group’s footprint in Africa’s energy and industrial infrastructure sector, building on investments already established across the continent.
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