**Africa's Richest Man, Ethiopia, and Djibouti to Build $660 Million Fuel Pipeline**
Nigerian billionaire Aliko Dangote, recognized as Africa's richest man, has partnered with Ethiopia and Djibouti to initiate a significant infrastructure project: a $660 million petroleum pipeline and storage facility. This venture aims to enhance the energy supply chain between the two countries and is expected to commence operations within the next 18 months.
The project will feature a 120-kilometer (approximately 75 miles) pipeline that will connect Damerjog port in Djibouti to a distribution facility in Dewele, Ethiopia. In addition to the pipeline, the project will include a storage capacity of around 400 million liters of petroleum products. Ethiopian Prime Minister Abiy Ahmed emphasized that this infrastructure will drastically reduce the transportation time for fuel from Djibouti to Ethiopia's capital, Addis Ababa, cutting it down from five days to just one day.
During the groundbreaking ceremony, Dangote highlighted the importance of this project in bolstering Ethiopia's energy security and enhancing the resilience of its fuel supply chain. As a landlocked nation, Ethiopia relies heavily on Djibouti's port for its imports, particularly petroleum products. The new pipeline is anticipated to alleviate the pressure on existing transportation systems that support various sectors, including transport, aviation, agriculture, and construction.
The project is expected to yield multiple benefits for Djibouti as well, including increased port activity, job creation, and a boost in government revenues. This collaboration is part of Dangote's broader strategy to expand his infrastructure and manufacturing businesses across the African continent.
Dangote Cement, the billionaire's flagship company, boasts a production capacity of approximately 55 million tonnes per year. Furthermore, his oil refinery in Nigeria has a current capacity to process 700,000 barrels of crude oil per day, with plans to double that capacity to 1.4 million barrels per day. Recently, the refinery took a significant step by listing 4.1 billion ordinary shares on the Nigerian stock exchange, aiming to raise about $1.63 billion.
In addition to the pipeline project, Dangote is also set to break ground next week on a proposed 700,000-barrel-a-day crude oil refinery in Lamu, Kenya, further underscoring his commitment to expanding energy infrastructure across Africa.
This pipeline initiative represents a critical step in enhancing regional energy cooperation and infrastructure development, reflecting the growing economic ties between Ethiopia and Djibouti, as well as Dangote's influential role in the African business landscape.