Africa’s richest man helps fund $660m fuel pipeline between Ethiopia and Djibouti

Nigerian billionaire Aliko Dangote has announced his support for a $660 million (£500 million) fuel pipeline project connecting Ethiopia and Djibouti. The pipeline will span 120 kilometers (75 miles) and connect Djibouti’s Damerjog port to a distribution facility in Dewele, Ethiopia. It will also provide storage for approximately 400 million liters of fuel.

Ethiopian Prime Minister Abiy Ahmed stated that the pipeline will cut the time required to transport fuel from Djibouti's port to Addis Ababa from five days to just one. Dangote, Africa’s richest man, emphasized that the project will enhance Ethiopia's energy security and bolster its fuel supply chain resilience. 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 that support various industries such as transport, aviation, agriculture, and construction. Djibouti is also expected to profit from heightened port activity, job creation, and increased government revenues. This initiative is part of Dangote's broader strategy to expand his infrastructure and manufacturing businesses across Africa.

Dangote Cement boasts production capacity of around 55 million tonnes annually, while his oil refinery in Nigeria can process 700,000 barrels of crude oil per day and is aiming to double that capacity to 1.4 million barrels per day. The refinery has recently issued 4.1 billion ordinary shares on the Nigerian stock exchange, with the aim of raising approximately $1.63 billion (£1.2 billion).

In Kenya, Dangote plans to start construction next week on a proposed 700,000-barrel-a-day crude oil refinery in Lamu.