The Prime Minister of Ethiopia, Dr. Abiy Ahmed, and the President of Djibouti, Ismaïl Omar Guelleh, have commended Dangote Group’s $660 million Damarjog-Dewele Oil Terminal and Pipeline Project, describing the investment as a major boost to regional trade, energy security, job creation and economic growth across the Horn of Africa.
The two leaders spoke at the groundbreaking ceremony of the project at the Damerjog 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, in championing one of the region’s major privately funded energy infrastructure investments.
The project comprises a modern 120-kilometre multiproduct pipeline linking marine and coastal storage facilities at Damarjog in Djibouti with 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-chain reliability and support the growing energy needs of Ethiopia and the wider region.
President Guelleh described the project as a major milestone in Djibouti’s ambition to become a leading logistics, industrial and energy hub for 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,” Guelleh said.
According to him, the investment will stimulate economic activity, expand port operations, attract new investments and create thousands of direct and indirect employment opportunities.
He said the project would also increase trade volumes, strengthen commercial activity and enhance investor confidence while supporting local businesses and reinforcing Djibouti’s position as a critical 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,” he added.
Prime Minister Abiy Ahmed described the project as a strategic infrastructure development that would strengthen Ethiopia’s energy security and support 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,” Abiy stated.
He noted that the project would help eliminate transportation bottlenecks, improve efficiency within Ethiopia’s petroleum distribution network and provide a more stable supply of fuel for key sectors of the 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 industrial development,” he said.
According to the Ethiopian leader, the project would also improve product quality control, reduce losses associated with long-distance transportation and enhance the competitiveness of the Ethiopian economy.
Abiy further highlighted the longstanding economic partnership between Ethiopia and Djibouti, describing the pipeline as another demonstration of their commitment to regional cooperation and shared development.
“The relationship between Ethiopia and Djibouti has always been anchored on shared prosperity and mutual development. This pipeline is another demonstration of our commitment to regional cooperation and the development of infrastructure that serves the interests of our people,” he said.
Speaking at the ceremony, Dangote said the Damarjog-Dewele Pipeline Project aligns with the Group’s broader vision of developing transformative infrastructure capable of supporting Africa’s economic development 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. It underscores our commitment to investing in infrastructure that enables African countries to maximize their economic potential,” Dangote said.
He explained that Djibouti would benefit from increased port activity, higher revenues and new employment opportunities, while Ethiopia would gain stronger energy security and fewer logistics bottlenecks.
“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 value chain will benefit from expanded economic activity,” he said.
Dangote noted that 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.
He said the pipeline would significantly improve the safety and efficiency of petroleum transportation by reducing dependence on long-distance tanker movements, easing congestion, lowering operational risks and minimising the potential for product 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 contractors, suppliers, 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 promoting 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. This is Africa building the infrastructure it needs to accelerate development and deepen intra-African trade,” he said.
The project further expands Dangote Group’s investments in Africa’s energy and industrial sectors, building on the Dangote Petroleum Refinery and other strategic investments across the continent.