Djibouti and Ethiopia Break Ground on $660 Million Pipeline

President Ismaïl Omar Guelleh of Djibouti and Prime Minister Abiy Ahmed of Ethiopia broke ground on September 24, 2026, for the $660 million Damarjog-Dewele Oil Terminal and Pipeline Project. The infrastructure consists of a 120-kilometer multi-product pipeline connecting marine storage at the Damerjog Industrial Development Free Trade Zone in Djibouti to inland distribution facilities in Dewele, Ethiopia.

The project is a partnership between the Dangote Group and Ethiopian Investment Holdings. The terminal at Damerjog will provide a storage capacity of 375,000 cubic meters and a transit capacity of 5 million tons of petroleum products annually, while the Dewele facility will offer 800,000 cubic meters of storage. The pipeline is expected to be operational within 18 months.

Prime Minister Abiy Ahmed stated the initiative will reduce Ethiopia's reliance on road transport and long-distance tanker movements, thereby lowering logistics costs and enhancing energy security. President Guelleh characterized the project as a milestone in Djibouti's ambition to become a premier regional logistics and energy hub. The investment is part of a broader strategy by the Dangote Group to invest $50 billion in African industrial infrastructure by 2030 to promote economic self-sufficiency.

Separately, the Dangote Group expanded its East African footprint by signing a contract exceeding $450 million with Engineers India Limited. The agreement appoints the firm as the consultant for a new 700,000 barrel-per-day greenfield refinery and petrochemical plant in Kenya.