Business
Dangote to Co-Fund $660 Million Ethiopia-Djibouti Petroleum Pipeline
Nigerian industrialist Aliko Dangote is co-financing a US$660 million pipeline to carry refined petroleum products between Djibouti and Ethiopia, officials announced Thursday.
The 120-kilometer (75-mile) line, unveiled by Ethiopian Investment Holdings, will connect Djibouti’s Damerjog port to a distribution hub in Dewele, with storage facilities at both ends. Landlocked Ethiopia depends on the Djibouti port for most of its imports, including fuel.
Construction is expected to take about 18 months. Ethiopian Prime Minister Abiy Ahmed said the pipeline would cut logistics costs and delays while bolstering regional energy security.
The project extends Dangote Group’s rapid expansion across African infrastructure and manufacturing. The conglomerate is already building a US$4 billion fertilizer pipeline and power plant, along with a polypropylene packaging plant, in Ethiopia. It is also set to break ground next week on a 700,000-barrel-per-day oil refinery in Lamu, Kenya.