Africa’s richest man funds $660m pipeline between Ethiopia and Djibouti

 African billionaire from Nigeria, Aliko Dangote, is taking part in funding a fuel pipeline between Ethiopia and Djibouti worth $660 million.

The project aims to connect Damerjog port to a distribution facility in Dewele, Ethiopia through a 120km pipeline with a storage capacity of about 400 million liters; expecting to begin operation in 18 months.

Africa’s richest man Dangote said the project would strengthen Ethiopia’s energy security and make its fuel supply chain more resilient in his speech at the ground-breaking ceremony.

The project aims to serve both nations with Djibouti receiving increased port activity, job creation and higher government revenues and Ethiopia – which relies on the former for fuel imports – is expected to reduce pressure on existing transport networks serving industries such as aviation, agriculture and construction.

Dangote made his wealth with cement, with his firm, Dangote Cement, having a production capacity of about 55 million tons a year, he later expanded into the oil and gas industry with his oil refinery in Nigeria processing 700,000 barrels of crude a day and is seeking to double that to 1.4 million barrels a day.

Dangote’s refinery recently listed 4.1 billion ordinary shares on the Nigerian stock exchange, aiming to raise about $1.63bn, while in Kenya, the company is due to break ground on a proposed 700,000-barrel-a-day crude oil refinery next week.