On September 24, 2026, Djibouti's President Ismail Omar Guelleh initiated the construction of modern energy infrastructure at the Damerjog Industrial Park. The project includes a terminal for storing petroleum products and transportation networks, such as oil and gas pipelines. This guarantees the secure transportation of hydrocarbons to Ethiopia. The launch event was attended by Ethiopian Prime Minister Abiy Ahmed Ali, highlighting the strong economic ties between the two nations.
The project is a significant example of economic integration between Djibouti and Ethiopia, which have enjoyed close relations for nearly three decades. The initiative aims to enhance cooperation in the strategic energy sector. President Guelleh emphasized the importance of the project, stating that it would transform the region's energy landscape. He expressed gratitude to Prime Minister Abiy Ahmed Ali for his presence, which testifies to the strong ties between the two countries.
The project is being implemented with the financial support of Dangote Group, a prominent African conglomerate. The company's President and CEO, Aliko Dangote, attended the launch ceremony. The project will feature a modern storage terminal with a capacity of 375,000 cubic meters, handling five million tons of petroleum products annually. Additionally, a multiproduct pipeline will be constructed from Damerjog.
The project will cover an area of 80 hectares and is expected to create several hundred jobs. President Guelleh highlighted the project's benefits, including enhanced logistical capacity, secure energy supply, and reduced pressure on road corridors. The project will also decrease the region's carbon footprint and open up regional energy resources to international markets.
President Guelleh praised Aliko Dangote's vision and investment in the project, saying that it demonstrates the potential for African competitiveness when private sector leaders collaborate with governments. The President reaffirmed Djibouti's commitment to modernizing its infrastructure and diversifying its economy. He emphasized the country's strategic position at the entrance of the Bab el-mandeb, which comes with a responsibility to serve regional stability, prosperity, and integration.
The launch ceremony concluded with the signing of a tripartite memorandum of understanding between the Djibouti Ports Authority, Ethiopian Investment Holdings, and Dangote Group. This agreement outlines the cooperation framework for the project. Earlier in the day, Prime Minister Abiy Ahmed Ali received a warm welcome in Djibouti, where he met with President Guelleh and Aliko Dangote.
The modern energy infrastructure project is expected to have a significant impact on the region's energy sector and economy. The project's completion will enhance Djibouti's position as a key player in regional energy supply and integration. The collaboration between Djibouti, Ethiopia, and Dangote Group demonstrates the potential for African countries to work together to drive economic growth and development.
Key points
- The project includes a terminal for storing petroleum products with a capacity of 375,000 cubic meters and a multiproduct pipeline from Damerjog.
- The project aims to enhance cooperation in the strategic energy sector between Djibouti and Ethiopia.
- The project is expected to create several hundred jobs and have a significant impact on the region's energy sector and economy.
