Nigerian billionaire Aliko Dangote is putting up $660 million to build a fuel pipeline linking Ethiopia and Djibouti. The project includes a 120-kilometre pipeline from Djibouti’s Damerjog port to a distribution centre in Dewele, Ethiopia, along with storage tanks holding about 400 million litres of fuel.
The pipeline is expected to start operations within 18 months. Ethiopian Prime Minister Abiy Ahmed said it would cut the time needed to transport fuel from Djibouti’s port to Addis Ababa from five days to one. The first phase will carry jet fuel, diesel and petrol.
Dangote, Africa’s richest man, said the project would strengthen Ethiopia’s energy security and make its fuel supply chain more resilient. Ethiopia relies heavily on Djibouti’s port for imports because it is landlocked. The new pipeline should ease pressure on existing transport systems that serve industries like transport, aviation, agriculture and construction.
Djibouti will see more port activity, job opportunities and government revenue as a result of the project. The pipeline will be a joint venture between Dangote and Ethiopia.
This fuel pipeline is part of Dangote’s wider push into infrastructure and manufacturing across Africa. His Dangote Cement produces about 55 million tonnes a year. In Nigeria, his oil refinery processes 700,000 barrels of crude daily and aims to double that to 1.4 million barrels. The refinery recently listed 4.1 billion shares on the Nigerian stock exchange to raise about $1.63 billion.
In Kenya, Dangote’s company plans to break ground soon on a crude oil refinery in Lamu with a 700,000-barrel daily capacity.
The pipeline project between Ethiopia and Djibouti fits with Dangote’s broader strategy to develop energy and industrial projects across the continent. It also reflects Ethiopia’s aim to improve fuel transport efficiency and reduce costs linked to its reliance on Djibouti’s port infrastructure.
According to Joy Online.
