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Ethiopia, Djibouti advance $660 million fuel pipeline

  • October 5, 2026
  • Dagmawi Zeleke

Ethiopia is moving to strengthen its fuel security through a $660 million (R10.7bn) pipeline project linking the country to Djibouti, with Nigerian industrialist Aliko Dangote also involved in the investment.

Ethiopian Investment Holdings says the 120km pipeline will connect the Damerjog petroleum hub in Djibouti to Dewele in Ethiopia’s Somali Region.

The project will include storage facilities at both ends and is expected to be completed within two years.

Ethiopian Investment Holdings CEO Brook Taye said the infrastructure would allow fuel shipments arriving in Djibouti to be transferred into storage and then transported by pipeline to Ethiopia.

Taye said the project would reduce delays and demurrage costs, lower fuel transport costs and save foreign exchange.
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