Djibouti has launched a strategic energy project worth $160 million to enhance its corridor to Ethiopia. The project, initiated by President Ismaïl Omar Guelleh, aims to develop new energy and logistics infrastructure at the Damerjog industrial park. The project includes a modern petroleum product storage terminal and a multipurpose pipeline to ensure secure transportation of hydrocarbons to Ethiopia. This development is part of a broader regional economic integration effort.
The project was launched in the presence of Ethiopian Prime Minister Dr. Abiy Ahmed Ali and Aliko Dangote, President and CEO of the Nigerian Dangote Group, which is collaborating on the project. The initiative is expected to strengthen economic complementarity between Djibouti and Ethiopia, which has been a long-standing relationship. President Guelleh emphasized the importance of this partnership, highlighting the trust and shared conviction between the two nations to transform their complementarities into concrete projects.
The new terminal will have a storage capacity of 375,000 cubic meters and will be able to handle up to five million tons of petroleum products per year. The project also involves the construction of a 120-kilometer multipurpose pipeline connecting Damerjog to Dawanleh, near the Ethiopian border. Spanning 80 hectares, the project is expected to create hundreds of jobs. President Guelleh noted that this infrastructure will enhance Djibouti's logistical capacity and secure the region's energy supply.
The project aligns with Djibouti's goal of modernizing its infrastructure and diversifying its economy. President Guelleh emphasized the country's strategic position at the entrance of the Bab el-Mandeb, which comes with both privilege and responsibility to serve regional stability, prosperity, and integration. The project is a tripartite collaboration between Djibouti, Ethiopia, and the Dangote Group, leveraging the economic and geographical complementarities of the three partners.
A memorandum of understanding was signed between the Djibouti Ports and Free Zones Authority (APZFD), Ethiopian Investment Holdings (EIH), and the Dangote Group to strengthen cooperation on the project. This development is expected to enhance Djibouti's logistical and energy capacities while securing petroleum product supplies for Djibouti and the regional markets. The project will contribute to the strengthening of economic integration between Djibouti and Ethiopia.
Prime Minister Abiy Ahmed Ali was received by President Guelleh at Djibouti's international airport earlier in the day. The two leaders discussed bilateral relations and the strategic importance of the Damerjog project. The project is seen as a significant step towards establishing Djibouti as a regional logistical and energy platform. The collaboration between the three partners is expected to drive economic growth and regional integration.
The project is a testament to the strong partnership between Djibouti, Ethiopia, and the Dangote Group. President Guelleh praised the Dangote Group's pan-African vision and commitment to investing in Africa's growth. The project is expected to have a positive impact on the region, driving economic development and enhancing energy security.
Key points
- The project aims to strengthen the economic corridor between Djibouti and Ethiopia.
- The project includes a modern petroleum product storage terminal and a multipurpose pipeline.
- The initiative is expected to create hundreds of jobs and drive regional economic integration.
