EIH Dangote Ethiopia Djibouti Pipeline MoU: $660M Project Commences

• Ethiopian Investment Holdings (EIH), Dangote Group, and Djibouti’s Great Horn Investment Holding S.A. signed an MoU on September 24, 2026, for a new petroleum pipeline.
• The project, valued at $660 million, involves a 120-kilometer pipeline and terminals with over a million cubic meters of combined storage capacity.
• It aims to enhance Ethiopia's energy security and regional trade by connecting Damerjog, Djibouti, with Dewele, Ethiopia.
• Prime Minister Abiy Ahmed, President Ismail Omar Guelleh, and Alhaji Aliko Dangote attended the foundation stone laying ceremony.
• The pipeline is projected to be completed in less than two years and builds on an existing EIH-Dangote partnership in a $2.5 billion fertilizer complex.

More than a pipeline, this is an investment in future growth, regional integration and a more secure shared economic future with African investment at its center.

The development of a crucial cross-border petroleum pipeline linking Ethiopia and Djibouti officially commenced on September 24, 2026, with the signing of a Memorandum of Understanding (MoU) and the ceremonial laying of its foundation stone. This ambitious undertaking, valued at $660 million, brings together Ethiopian Investment Holdings (EIH), Nigeria’s Dangote Industries Limited, and Djibouti’s state-owned Great Horn Investment Holding S.A. The agreement paves the way for the construction of a vital energy artery designed to bolster regional trade and energy supply networks.

The foundation stone ceremony was attended by high-profile dignitaries, underscoring the strategic importance of the Ethiopia Djibouti petroleum pipeline project. Ethiopian Prime Minister Abiy Ahmed (PhD), Djibouti President Ismail Omar Guelleh, and Dangote Group Chief Alhaji Aliko Dangote were present to mark the occasion. Prime Minister Ahmed lauded the initiative, stating it represents "more than a pipeline," viewing it as an investment in future growth, regional integration, and a more secure shared economic future, with African investment at its core. This public endorsement highlights the political will behind the Abiy Ahmed Dangote pipeline.

The core of this initiative is a 120-kilometer petroleum pipeline, engineered to create an integrated supply chain for refined products. This infrastructure will connect marine receipt and storage facilities situated in Damerjog, Djibouti, with pipeline, storage, and distribution facilities located in Dewele, Ethiopia. The comprehensive design includes terminals at both ends, which collectively will provide over a million cubic meters of storage capacity.

This significant investment, totaling $660 million, is projected to be completed within a timeframe of less than two years, signaling an expedited development schedule for the $660 million Damerjog Dewele pipeline.

Beyond its physical components, the Ethiopia Djibouti petroleum pipeline project is envisioned as a critical piece of Ethiopia energy security infrastructure. Its primary objectives include significantly enhancing Ethiopia's energy security, fostering stronger regional trade links, and guaranteeing the safe, reliable, and efficient transportation of petroleum products originating from Djibouti. Officials emphasize that this initiative is poised to strengthen Ethiopia’s petroleum supply chain, improve regional connectivity, and ultimately boost the nation's economic competitiveness.

Brook Taye, the Chief Executive Officer of EIH, underscored the transformative potential of this "bold infrastructure." He articulated that such projects are vital for Africa, as they address bottlenecks and unlock economic potential. Taye further elaborated that the pipeline is expected to improve supply efficiency, deepen regional integration across East Africa, and promote more sustainable methods for transporting petroleum products, aligning with broader regional development goals.

The development of this petroleum pipeline project is not an isolated venture but rather a continuation of an expanding partnership between Ethiopian Investment Holdings and the Dangote Group. This collaboration already includes a substantial joint investment in a $2.5 billion urea fertilizer production complex located in Gode. This existing facility is designed to achieve an impressive annual production capacity of three million metric tonnes of urea, demonstrating a shared commitment to large-scale industrial development and regional economic growth. This broader alliance highlights the strategic nature of the EIH Dangote Ethiopia Djibouti pipeline MoU within a wider framework of cooperation.

This cross-border energy infrastructure project signals significant future legal work in project finance, regulatory compliance, and environmental law for firms advising on large-scale development in Ethiopia and Djibouti, requiring close monitoring of its progression and associated legal frameworks.

Source: Original reporting via Ethiopian Monitor