Africa’s richest man backs $660m Ethiopia-Djibouti fuel pipeline

Africa’s richest man, Aliko Dangote, is among the backers of a $660 million fuel pipeline that would run from Djibouti’s coast deep into landlocked Ethiopia — a project that could reshape energy supply across the Horn of Africa.

The pipeline, stretching roughly 550 kilometres, is designed to carry petroleum products from Djibouti’s port facilities to Ethiopia’s capital, Addis Ababa. Right now, Ethiopia depends almost entirely on diesel-powered trucks to haul fuel across difficult terrain from the coast. It’s slow, expensive, and unreliable. The pipeline would cut transportation costs dramatically and reduce the country’s exposure to fuel shortages.

Jobs, security, and a strategic bet

For Djibouti, the deal isn’t just about pipes in the ground. It’s about cementing the small nation’s role as the region’s indispensable logistics hub. Port authorities expect the project to generate hundreds of permanent jobs and significantly increase throughput volumes at existing terminal facilities.

Ethiopia, with a population of over 120 million people and one of Africa’s fastest-growing economies, has long struggled with energy insecurity. Fuel price spikes have rippled through its transport and manufacturing sectors with damaging regularity.

Dangote’s involvement signals serious private-sector confidence in the corridor.

“This infrastructure will be transformative for regional trade and energy stability,” said a spokesperson for the project’s development consortium, without disclosing the full list of investors.

Construction is expected to begin before the end of 2025, with completion targeted within three years. But financing arrangements still need to be finalised, and regulatory approvals in both countries are ongoing. If it gets built on schedule, the pipeline could be pumping fuel by 2028 — changing the economics of an entire region.