Dangote Group, Ethiopia, Djibouti to construct Ksh 85B fuel pipeline

Ethiopia, Djibouti and the Dangote Group have begun building a $660 million (Ksh85 billion) fuel pipeline and storage facility. The 120km pipeline will run from Damerjog in Djibouti to Dewele in Ethiopia, improving supply between the two nations. The project is also designed to enhance fuel security in the region and decrease the number of days Ethiopia receives fuel by up to 80%.

Ethiopian Prime Minister Abiy Ahmed addressed the groundbreaking ceremony, explaining how the pipeline will connect Ethiopia to global trade and Djibouti to a large market, while also reducing costs for producers, businesses, and households. He emphasized that every unit of fuel reaching Addis Ababa now has spent five days traveling by truck. The project aims to cut that journey down to only one day, bolstering reserves and ensuring supplies during times of global uncertainty.

The $85 billion infrastructure investment is expected to stimulate growth across various industries in Ethiopia and bolster Djibouti's status as an essential infrastructure and logistics hub, particularly amidst regional conflicts. Abiy Ahmed stated that the timing of the investment is vital, as shipping routes are being disrupted and emerging markets are facing instability. As the two countries' trade is heavily dependent on the Red Sea, the pipeline offers a more resilient solution.

Meanwhile, Nigerian billionaire Aliko Dangote is set to participate in the groundbreaking ceremony for the Ksh 2.2 trillion East Africa Oil Refinery in Lamu, Kenya, on September 30, 2026. The refinery, planned to be constructed over three years, will have the capacity to process 700,000 barrels of crude oil daily and will create an estimated 50,000 jobs.