Africa's richest man helps fund $660m fuel pipeline between Ethiopia and Djibouti

An important development from the financial markets: Africa's richest man helps fund $660m fuel pipeline between Ethiopia and DjiboutiImage source, Bloomberg via Getty ImagesImage caption, Aliko Dangote made his fortune from cement in NigeriaByOndiro OgangaPublished25 September 2026Nigerian billionaire Aliko Dangote has announced that he is helping to fund a new $660m (£500m) fuel pipeline between Ethiopia and DjiboutiThe project will include a 120km- (75 mile-) pipeline connecting Djibouti's Damerjog port to a distribution facility in Dewele, Ethiopia, as well as storage capacity of about 400 million litres. It is expected to begin operations within 18 months. Ethiopian Prime Minister Abiy Ahmed said the pipeline, which would be a joint venture between Dangote and Ethiopia, is expected to reduce the time needed to transport fuel from Djibouti's port to the Ethiopian capital, Addis Ababa, from five days to one.

The first phase will transport key petroleum products, including jet fuel, diesel and petrol. Speaking at the ground-breaking ceremony, Dangote, Africa's richest man, said the project would strengthen Ethiopia's energy security and make its fuel supply chain more resilient. Landlocked Ethiopia relies heavily on Djibouti's port for imports, including petroleum products.

Economic Details

The new infrastructure is expected to reduce pressure on existing transport systems supporting industries, including transport, aviation, agriculture and construction. Djibouti is also expected to benefit from increased port activity, job creation and higher government revenues. The project is part of Dangote's wider expansion of infrastructure and manufacturing businesses across Africa.

Dangote Cement has production capacity of about 55 million tonnes a year, while his oil refinery in Nigeria currently has capacity to process 700,000 barrels of crude a day and is seeking to double that to 1. 4 million barrels a day. The refinery recently listed 4.

1 billion ordinary shares on the Nigerian stock exchange, aiming to raise about $1. In Kenya, the company is due to break ground next week on a proposed 700,000-barrel-a-day crude oil refinery in Lamu. Figure caption, Dangote speaks to the about his new oil refinery in KenyaYou may also be interested in:'This is our company': Nigerians show off oil wealth after share-buying frenzy Published18 SeptemberLISTEN: Aliko Dangote: Africa’s richest person Go to BBCAfrica.

com, external for more news from the African continent.

Financial markets are tracking the development closely as investors assess the likely impact.