Ethiopia and Djibouti, with the support of Nigerian billionaire and Africa’s richest man, Aliko Dangote, are to build a pipeline to transport oil between the two countries, Ethiopian Prime Minister Abiy Ahmed announced on Thursday.
“The project will be implemented as part of a partnership between Ethiopian Investment Holdings and the Dangote Group. This landmark infrastructure project will reduce logistical costs and delays, strengthen energy security, and enhance the efficiency and sustainability of the Ethiopia–Djibouti corridor,” Ahmed wrote on social media.
A spokesperson for the Ethiopian Prime Minister’s Office told Reuters that the project is valued at $660 million. It will comprise a 120-km pipeline and oil storage facilities with a capacity of 375,000 cubic metres (in the town of Damergog in Djibouti) and 800,000 cubic metres (in Devele, Ethiopia).
“This is not just a petroleum pipeline — it is an investment in future growth, regional integration and a more secure shared economic future,” added Ahmed.
In February, Ethiopia’s Minister of Transport Alemu Sime held talks with the management of the port of Tadjoura in Djibouti regarding the possibility of using the port for trade.
Earlier in September, the head of Nigeria’s Dangote Group and Africa’s richest man, Aliko Dangote, announced that he would invest $10 billion in the continent’s energy sector. That same month, Dangote entered the top 40 richest people in the world following the initial public offering (IPO) of the Dangote oil refinery. (Afr Initiative/GSF)