By Angel No Lie | KPD Online | September 27, 2026 | BUSINESS NEWS

Aliko Dangote is expanding his investments in East Africa through a major petroleum infrastructure partnership.

Nigerian billionaire Aliko Dangote has joined forces with Ethiopia and Djibouti to develop a $660 million petroleum pipeline designed to improve fuel transportation, strengthen energy security and expand economic cooperation in the Horn of Africa.

The project, announced on September 24, 2026, involves a partnership between Dangote Group and Ethiopian Investment Holdings. It will connect the port of Damerjog in Djibouti to Dewele in Ethiopia through a 120-kilometre pipeline.

Aliko Dangote is expanding his investments in East Africa through a major petroleum infrastructure partnership.

A New Route for Ethiopia’s Fuel Imports

The planned pipeline will transport refined petroleum products, including petrol, diesel and aviation fuel, into Ethiopia.

As a landlocked country, Ethiopia depends heavily on Djibouti’s ports for international trade and petroleum imports. Much of its fuel currently travels by road, creating transportation costs and logistical challenges.

Ethiopian Prime Minister Abiy Ahmed said the new infrastructure is intended to reduce delivery delays and strengthen the country’s fuel supply network.

The project also includes substantial storage facilities at both ends of the pipeline. Developers are targeting operations within 18 months, although the completion date remains subject to construction progress.

Petroleum storage and port infrastructure in Djibouti

Economic Opportunities for Both Countries

The investment is expected to support economic activity in both countries.

For Ethiopia, the pipeline could reduce dependence on long-distance tanker transportation and improve fuel availability for manufacturing, agriculture, aviation and construction.

Djibouti could benefit from increased port activity, additional employment opportunities and greater demand for logistics services.

At the project’s groundbreaking ceremony, Djiboutian President Ismail Omar Guelleh welcomed the investment as part of the country’s efforts to expand its position as a regional logistics and energy hub.

Fuel transportation by road in East Africa

Dangote Expands His African Energy Investments

The Ethiopia–Djibouti pipeline represents another step in Dangote Group’s expansion beyond Nigeria.

The conglomerate operates a major petroleum refinery near Lagos and has interests in cement, fertilisers, manufacturing and other industrial sectors.

Dangote said the new pipeline is intended to improve supply-chain efficiency while creating long-term economic value for Ethiopia and Djibouti.

Dangote’s petroleum refinery in Nigeria

What Happens Next?

Although the groundbreaking ceremony has taken place, the project must still progress through construction before it can begin commercial operations.

Its eventual impact will depend on timely completion, operating capacity, transport costs and the effectiveness of connections to Ethiopia’s wider distribution network.

If successfully delivered, the pipeline could become an important part of the region’s petroleum supply infrastructure and deepen commercial ties between Ethiopia and Djibouti.