Ethiopia, Djibouti Launch Strategic Energy Link to Strengthen Regional Integration

Addis Ababa, September 24, 2026 (FMC) — Ethiopia and Djibouti have announced a major strategic investment to connect Damerjog in Djibouti with Dewele in Ethiopia through a new pipeline for refined petroleum products, backed by storage terminals at both ends.

Prime Minister Abiy Ahmed made the announcement alongside Djiboutian President Ismaïl Omar Guelleh and African business leader Aliko Dangote during his visit to Djibouti.

The project will be developed through a partnership between Ethiopian Investment Holdings (EIH) and the Dangote Group, placing African investment at the center of a major cross-border infrastructure initiative.

The new energy link is designed to reduce logistics costs and delays, strengthen energy security and improve the efficiency and resilience of the Ethiopia-Djibouti corridor.

With storage facilities supporting the pipeline on both sides of the border, the project is set to establish a more integrated system for the movement and management of refined petroleum products between the two countries.

Prime Minister Abiy described the initiative as more than a pipeline, emphasizing its wider significance for future growth, regional integration and a more secure shared economic future.

The project adds a major new dimension to the longstanding Ethiopia-Djibouti economic partnership, linking infrastructure, energy security and cross-border investment while reinforcing the strategic importance of the corridor to the wider Horn of Africa.

The initiative also highlights an expanding role for African capital and enterprises in building infrastructure that supports regional connectivity and economic integration.