Ethiopia’s state investment arm has signed a memorandum of understanding with Nigeria’s Dangote Industries Limited and Djibouti’s Great Horn Investment Holding S.A. to develop petroleum storage and pipeline infrastructure linking the two countries, with the foundation stone laid on Thursday in Djibouti.

Prime Minister Abiy Ahmed, Djiboutian President Ismail Omar Guelleh and Dangote Group President Aliko Dangote jointly laid the stone for the project, which carries an estimated investment of USD 660 million and a projected completion timeline of less than two years.

The infrastructure is designed as an integrated petroleum products supply chain, connecting marine receipt and storage facilities in Djibouti with pipeline, storage and delivery infrastructure inside Ethiopia. Ethiopian Investment Holdings (EIH) said the project could ease logistics bottlenecks, improve the reliability of fuel supply and lower transport costs.

Ethiopia, landlocked since 1993, relies on Djibouti as its principal maritime gateway, and the bulk of its imported petroleum currently moves inland by road tanker. EIH said a shift toward pipeline transport could cut that dependence on trucking and reduce the carbon footprint of fuel logistics along the corridor.

“Africa needs bold infrastructure that removes bottlenecks and unlocks economic potential,” EIH Chief Executive Officer Dr. Brook Taye said, adding that the project offered an opportunity to strengthen Ethiopia’s petroleum supply chain and improve regional connectivity.

“At EIH, we are focused on investments that strengthen critical infrastructure and create long term value,” he said.

Deepening EIH–Dangote ties

The agreement extends a growing investment relationship between EIH and the Dangote Group. The two are already partners on a USD 2.5 billion urea fertilizer complex in Gode, Somali Region, with a planned annual production capacity of three million tonnes.