Djibouti approved proposals by Dangote Group and Ethiopian Investment Holdings to build oil and gas pipelines through the Horn of Africa state, according to a statement from the presidency.
The projects would deepen Dangote’s eastward expansion and give Ethiopia a new route to international energy markets.
In the first phase, the companies plan to build a refined petroleum products pipeline from Djibouti’s port to Dawele in southeastern Ethiopia. A second phase would involve crude oil and natural gas pipelines from Ethiopia’s Somali region to export markets via Djibouti.
Strategic Push
The pipeline plan comes as Dangote widens its regional footprint beyond Nigeria, where his 650,000-barrels-a-day refinery has become the centerpiece of his industrial empire. The move also aligns with Ethiopia’s push to build out energy infrastructure and attract capital into large-scale industrial projects.
Dangote Group and EIH are already working together on a $4 billion fertilizer complex in Ethiopia’s Somali region, a project that will include a natural gas pipeline and a 120-megawatt power plant. That existing partnership gives the two sides an industrial base from which to extend into transport infrastructure.
Investment Angle
Dangote said last week that Ethiopia will account for about 9% of his planned investment over the next five years, making it his second-largest destination after Nigeria. That signals the country’s growing importance in his Africa strategy and suggests more projects could follow if the pipeline plan advances.
For Djibouti, the deal strengthens its role as a logistics and transit hub for the region. For Ethiopia, it offers a possible lifeline to global markets for hydrocarbons as the country looks to monetize domestic resources and expand infrastructure.
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