The President of Djibouti, Ismaïl Omar Guelleh, will preside over the laying of the first stone of the fuel storage and pipeline project on September 24, 2026, at the Djibouti Damerjog Industrial Park (DDIP) in Damerjog, Djibouti. The project, undertaken by the Dangote Group and Ethiopian Investment Holdings, is a significant investment in the region's economic development. The DDIP site is managed by Djibouti Damerjog Industrial Development (DDID).
The project involves an investment of $160 million and covers an area of approximately 80 hectares. Once completed, the facility will have a storage capacity of 375,000 cubic meters and a transit capacity of 5 million tons of petroleum products per annum. A pipeline will connect the DDIP to Dewele, located in eastern Ethiopia, enhancing the country's energy security and reducing logistics costs.
The project is expected to create several hundred local jobs, stimulating economic activity and providing opportunities for Djiboutian businesses in construction, logistics, maintenance, and services. The development will also increase the attractiveness of the DDIP, positioning it as a major industrial hub in the region. This aligns with Djibouti's strategy to diversify its economy and become a key player in the global logistics and trade industry.
For Ethiopia, the project offers a reliable alternative to road transport, reducing logistics costs and enhancing the security of its energy supplies. The pipeline will provide a more efficient and cost-effective way to transport petroleum products, supporting the country's economic growth and development. This project strengthens the economic ties between Djibouti and Ethiopia, fostering cooperation and mutual benefit.
The Dangote Group, a prominent African conglomerate, is leading the project, bringing its expertise in industrial development and management. Ethiopian Investment Holdings, a key player in Ethiopia's economy, is also involved in the project, ensuring that the development aligns with the country's strategic objectives. The collaboration between these entities and the governments of Djibouti and Ethiopia underscores the project's significance and potential impact.
The laying of the first stone marks a significant milestone in the project's implementation. The event is expected to attract high-level officials, business leaders, and stakeholders from both countries. As the project progresses, it will be closely watched by investors, policymakers, and industry experts, who recognize its potential to transform the region's economic landscape.
The fuel storage and pipeline project is a testament to the growing economic cooperation between Djibouti and Ethiopia. By investing in critical infrastructure, both countries are positioning themselves for sustainable growth and development. The project's success will depend on effective implementation, collaboration, and management, ensuring that its benefits are realized and its potential is fully unlocked.
Key points
- The project will create several hundred local jobs and stimulate economic activity in Djibouti.
- The pipeline will connect the DDIP to Dewele in eastern Ethiopia, enhancing the country's energy security.
- The project involves a $160 million investment and covers an area of approximately 80 hectares.
