Africa's richest man helps fund $660m fuel pipeline between Ethiopia and Djibouti
The pipeline would strengthen energy security in landlocked Ethiopia, while creating jobs at Djibouti's port.
Nigerian billionaire Aliko Dangote is contributing funds for a $660 million fuel pipeline connecting Ethiopia and Djibouti. This project will encompass a 120km pipeline linking Djibouti's Damerjog port to a storage facility in Dewele, Ethiopia, along with storage capacity for approximately 400 million liters. The pipeline is anticipated to commence operations within 18 months.
Ethiopian Prime Minister Abiy Ahmed highlighted that this pipeline will cut the time to transport fuel from Djibouti's port to the Ethiopian capital, Addis Ababa, from five days to just one. Dangote, Africa's richest man, stated that the project would enhance Ethiopia's energy security and fortify its fuel supply chain, making it more resilient.
Landlocked Ethiopia heavily depends on Djibouti's port for imports, including petroleum products. The new infrastructure is anticipated to alleviate pressure on existing transport systems, supporting industries such as transport, aviation, agriculture, and construction. Additionally, Djibouti is projected to gain from heightened port activity, job creation, and increased government revenues.
The project aligns with Dangote's broader strategy of expanding infrastructure and manufacturing businesses across Africa. Dangote Cement, one of his ventures, possesses a production capacity of around 55 million tonnes annually. Meanwhile, his oil refinery in Nigeria presently has the capacity to process 700,000 barrels of crude oil daily and aims to double that output to 1.4 million barrels per day.
Recently, Dangote's Nigerian refinery listed 4.1 billion ordinary shares on the Nigerian stock exchange, with the aim of raising approximately $1.63 billion.
Moreover, Dangote is set to commence ground-breaking next week on a proposed 700,000-barrel-a-day crude oil refinery in Kenya's Lamu region. For further news from the African continent, visit BBCAfrica.com, available on Twitter @BBCAfrica, Facebook at BBC Africa, or Instagram at bbcafrica.
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