The Prime Minister of Ethiopia, Dr. Abiy Ahmed and President of the Republican of Djibouti, H . E Ismail Omar Guelleh, have hailed the Dangote Group’s $660 million Damarjog – Dewele Oil Terminal and Pipeline Project as a transformative investment that will strengthen regional integration, improve energy security, create jobs, and accelerate economic growth across Horn of Africa.
The two leaders spoke at the groundbreaking ceremony of the landmark project held at the Damarjog Industrial Development Free Trade Zone in Djibouti, where they praised the vision and commitment of African Industrialist and President / Chief Executive of Dangote Industries Limited, Aliko Dangote for championing one of the region’s most significant private funded energy infrastructure investments.
The project comprises modern 120 – kilometre multi – product pipeline linking marine and coastal storage facilities at Damarjog in Djibouti with inland storage and distribution facilities at Dewele in Ethiopia. Upon completion, it will facilitate the official transformation of refined petroleum products, enhance supply chain reliability, and support growing energy needs of Ethiopia and the wider region.
President Guelleh described the project as a milestone in Djibouti’s ambition to become leading logistics, industrial, and energy hub for Africa.
“Today marks an important chapter in Djibouti’s journey toward becoming a premier center 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,” President Guelleh said.
According to Djiboutian leader, the project will stimulate economic activity, expand export operations, attract new investments, and create thousands of direct and indirect employment opportunities.
“This investment will generate significant value for Djibouti through increased trade volumes, stronger commercial activity, and enhance investor confidence. It will create jobs, support local businesses, and further strengthen our position as a critical gateway connecting regional economic – – -We are proud to partner with Dangote Group in delivering a project that demonstrates the strength of Africa – led investment and practical African solutions to African challenges,” he said.
Ethiopian Prime Minister Abiy Ahmed described the project as a strategic infrastructure development that will significantly strengthen Ethiopia’s energy security while supporting the country’s 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,” Prime Minister Abiy Ahmed stated.
He noted that the project would eliminate transportation bottlenecks, improve efficiency within the petroleum distribution network, and ensure a more stable supply of fuel for sectors of the Ethiopian economy.
“The impact of this investment extends beyond the energy sector. Reliable access to petroleum products will support aviation, transportation, agriculture, manufacturing, construction, and broader industries development. It will improve product quality control, reduce losses associated with long – distance transportation, enhance the competitiveness of our economy.
The Ethiopian leader also emphasized that the project reflects the longstanding economic partnership between Ethiopia and Djibouti. “The relationship between Ethiopia and Djibouti has always been anchored on share prosperity and mutual development. The pipeline is another demonstration of our commitment to regional cooperation and development of infrastructure that served the interests of our people. It illustrates how African nations can work together to unlock opportunities, improve connectivity and deliver sustainable development,” he said.
Speaking at the ceremony, President and Chief Executive of Dangote Industries Limited, Aliko Dangote said the Damarjog – Dewele Pipeline Project aligns with the Group’s broader vision of building transformative infrastructure that supports Africa’s economic development and self – sufficiency.
“This project is designed to enhance energy security, improve supply – chain efficiency, and create create sustainable economic value of both Djibouti and Ethiopia. It underscores our commitment to investing in infrastructure that enables African countries to maximize that economic potential,” Dangote said.
He explained that the project would boost economic activity in Djibouti while guaranteeing a more reliable supply of refined petroleum products of Ethiopia.
Djibouti will benefit from increased port activity, higher revenues, and new employment opportunities. Ethiopia will gain stronger energy security and fewer logistics bottlenecks. It is truly a win – win outcome for both countries, while local businesses across the their value chain will benefit from expanded economic activity.
Dangote noted that Djibouti corridor currently serves as the primary route for Ethiopia’s imports and exports, including petroleum products, making it one of the most strategic economic corridors in Africa.
He added that the pipeline would substantially improve the safety and efficiency of petroleum transportation by reducing dependence on long – distance tanker movements, easing congestion, lowering operational risks, and minimizing the potential for losses and environmental incidents.
Beyond its direct economic impact, the project is expected to create thousands of jobs during construction and operation while facilitating skills transfer and supporting local contactors, supplies, transport operators, and host communities.
The Damarjog – Dewele Pipeline Project forms part of Dangote Group’s broader Vision 2030 strategy, under which the Group plans to invest $50 billion across Africa in critical industrial and energy infrastructure aimed at boosting regional trade, industrialisation, and economic self – sufficiency.
Dangote reiterated the Group’s commitment to reducing Africa’s dependence on imports and encouraging local production.
“Our vision is to support African countries in becoming self – sufficient in production for which they posses the raw materials, market demand,. and strategic necessity. This is Africa building the infrastructure it needs to accelerate development and deepen intra – African trade,” he said.
The project further strengthens Dangote Group’s position as a leading investor in Africa’s energy and industrial sectors of Dangote Petroleum Refinery and other strategic investments across the continent.
