The Prime Minister of Ethiopia, Dr Abiy Ahmed, and President of Djibouti, Ismaïl Omar Guelleh, have described Dangote Group’s $660 million Damarjog-Dewele Oil Terminal and Pipeline Project as a major investment that will strengthen regional trade, enhance energy security and drive economic growth across the Horn of Africa.
The leaders spoke at the groundbreaking ceremony of the project at the Damerjog Industrial Development Free Trade Zone in Djibouti, where they commended the President and Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, for championing the privately funded energy infrastructure project.
The project involves the construction of a 120-kilometre multiproduct pipeline connecting marine and coastal storage facilities at Damarjog in Djibouti to inland storage and distribution facilities at Dewele in Ethiopia.
Upon completion, the pipeline is expected to facilitate the efficient transportation of refined petroleum products, improve supply reliability and support the growing energy needs of Ethiopia and other countries in the region.
According to a statement issued on Thursday, President Guelleh described the project as a significant milestone in Djibouti’s ambition to become a leading logistics, industrial and energy hub in Africa.
“Today marks an important chapter in Djibouti’s journey toward becoming a premier centre for logistics, energy, and industrial development. The Damarjog-Dewele Pipeline Project is not merely infrastructure; it is an investment in the future prosperity of our region,” he said.
Guelleh said the project would stimulate economic activity, expand port operations, attract investment and create direct and indirect employment opportunities.
He added that increased trade volumes and commercial activities would strengthen Djibouti’s position as a gateway connecting regional economies.
“We are proud to partner with the Dangote Group in delivering a project that demonstrates the strength of African-led investment and practical African solutions to African challenges,” the president said.
On his part, Prime Minister Abiy described the project as a strategic infrastructure development that would strengthen Ethiopia’s energy security and support its industrialisation agenda.
“Ethiopia’s continued economic expansion depends on reliable and efficient access to energy resources. This pipeline will provide a modern, dependable, and cost-effective system for transporting refined petroleum products into the country, thereby enhancing our energy security and reducing supply-chain vulnerabilities,” he said.
Abiy said the project would address transportation bottlenecks, improve efficiency in petroleum distribution and provide a more stable fuel supply for critical sectors of the Ethiopian economy.
He noted that reliable access to petroleum products would benefit aviation, transportation, agriculture, manufacturing, construction and other industries.
The Ethiopian leader also said the project demonstrated the longstanding economic partnership between Ethiopia and Djibouti and their commitment to regional infrastructure development.
Speaking at the ceremony, Dangote said the project was consistent with his group’s broader vision of developing infrastructure that promotes African economic growth and self-sufficiency.
“This project is designed to enhance energy security, improve supply-chain efficiency, and create sustainable economic value for both Djibouti and Ethiopia,” he said.
Dangote explained that Djibouti would benefit from increased port activity, higher revenues and employment opportunities, while Ethiopia would gain improved energy security and reduced logistics bottlenecks.
He said the Djibouti corridor currently serves as the primary route for Ethiopia’s imports and exports, including petroleum products, making it one of Africa’s strategic economic corridors.
According to him, the pipeline would improve the safety and efficiency of petroleum transportation by reducing reliance on long-distance tanker movements, easing congestion and lowering operational risks.
The project is also expected to create jobs during construction and operation, facilitate skills transfer and provide opportunities for local contractors, suppliers, transport operators and host communities.
The Damarjog-Dewele project forms part of Dangote Group’s Vision 2030 strategy, under which the company plans to invest $50 billion across Africa in industrial and energy infrastructure.
Dangote said the group remained committed to reducing Africa’s dependence on imports and supporting local production.
“Our vision is to support African countries in becoming self-sufficient in products for which they possess the raw materials, market demand, and strategic necessity,” he said.
The project adds to Dangote Group’s investments in Africa’s energy and industrial sectors, including the Dangote Petroleum Refinery and other strategic projects across the continent.
