Daily news
Nigerian billionaire Aliko Dangote said he is helping to fund a new $660 million refined petroleum product pipeline between Ethiopia and Djibouti.
Under the deal announced by Ethiopian Investment Holdings on Thursday, the project will see a 120km link built to connect Damerjog port to a distribution facility in Dewele.
Landlocked Ethiopia relies heavily on Djibouti’s port for imports, including petroleum products.
The pipeline is expected to begin operations within 18 months with the project including storage facilities on both ends of the connection.
Ethiopia’s Prime Minister, Abiy Ahmed, said it “will reduce logistics costs and delays” and strengthen energy security along the corridor.
The project comes as Dangote Group expands its infrastructure and manufacturing businesses across Africa.
It is building a $4 billion fertiliser pipeline and power plant, plus a polypropylene packaging facility in Ethiopia.
Dangote is also due to break ground next week on a new 700,000-barrel-per-day oil refinery in Lamu, Kenya.
