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

Nigerian tycoon Aliko Dangote has pledged his support for a $660 million fuel pipeline project linking Ethiopia and Djibouti. The venture, which will also involve Ethiopia, aims to transport key petroleum products such as jet fuel, diesel, and petrol. With a storage capacity of around 400 million liters, the pipeline is set to drastically cut down the time needed to deliver fuel from Djibouti's port to the Ethiopian capital, Addis Ababa – from five days to just one.

Dangote, Africa's richest man, highlighted that this infrastructure development will enhance Ethiopia's energy security and make its fuel supply chain more robust. Currently, landlocked Ethiopia heavily relies on Djibouti's port for imports, including petroleum products. The new pipeline is expected to alleviate pressure on existing transport systems, benefiting industries such as transport, aviation, agriculture, and construction.

Moreover, Djibouti is anticipated to gain from heightened port activity, job creation, and increased government revenues. This project is in line with Dangote's broader strategy of expanding infrastructure and manufacturing businesses across Africa. Dangote Cement, one of his ventures, boasts a production capacity of about 55 million tonnes annually. His oil refinery in Nigeria currently processes 700,000 barrels of crude daily and is planning to double this capacity to 1.4 million barrels per day.

Dangote Cement has recently floated 4.1 billion ordinary shares on the Nigerian stock exchange, aiming to raise approximately $1.63 billion. The company also plans to break ground on a proposed 700,000-barrel-a-day crude oil refinery in Lamu, Kenya, next week.