Prime Minister Abiy Ahmed Underscores Shared Prosperity as the Ultimate Promise of Ethiopia-Djibouti Corridor

Addis Ababa, September 24, 2026 (FMC) — Prime Minister Abiy Ahmed has underscored shared prosperity as the ultimate promise of the Ethiopia-Djibouti corridor, saying the landmark petroleum products pipeline must help turn the two countries’ shared geography into tangible economic gains.

Speaking at the groundbreaking ceremony for the 120-kilometre Ethiopia-Djibouti Petroleum Products Pipeline, Prime Minister Abiy said geography had given the two sisterly nations a shared corridor, connecting Djibouti to a vast market and Ethiopia to global trade.

“Our decisions must turn it into shared prosperity,” he said, stressing the need to realize the economic potential of the corridor.

The Prime Minister said delays, limited storage capacity and inefficient transportation have prevented the corridor from fully realizing its promise while raising costs for producers, businesses and households.

“Every litre of fuel that reaches Addis Ababa today has spent five days on a truck. That is a challenge we have come here to solve,” he said.

The new pipeline will connect Damerjog in Djibouti with Dewele in Ethiopia, with more than one million cubic metres of combined storage capacity at the two ends. Developed through a partnership between Ethiopian Investment Holdings and the Dangote Group, the project is expected to reduce the five-day fuel journey to about one day.

Prime Minister Abiy said the shorter transit time would deepen Ethiopia’s reserves and help protect supplies during periods of global uncertainty.

For Ethiopia, he said, the project will support the industries, transport systems, farms and cities that drive the economy. For Djibouti, it will bring greater transit volumes, better use of its energy infrastructure and a stronger position as a regional logistics hub.

Prime Minister Abiy credited Djibouti’s approach to Ethiopia’s growth as an opportunity for both countries, saying that vision reflected the steady leadership of President Ismail Omar Guelleh and the enduring partnership between the two nations.

He placed the investment against a backdrop of conflict disrupting shipping routes and unsettling energy markets, emphasizing the importance of resilience for Ethiopia and Djibouti, whose trade is closely tied to the Red Sea.

“For our two countries, whose trade is closely tied to the Red Sea, resilience is a necessity,” he said.

Prime Minister Abiy said the infrastructure serving the corridor must also evolve to meet future economic ambitions.

“The infrastructure that served yesterday’s economy cannot carry tomorrow’s ambition,” he said, calling for the port, highway, railway, Mojo Modern Logistics Centre, storage terminals and pipeline to function as “one connected system.”

“When they work together, journeys shorten, trade expands, and the entire region becomes more competitive,” he said.

The Prime Minister also highlighted the complementary strengths of the partners behind the project.

Djibouti, he said, brings its strategic position, port infrastructure and experience as a regional logistics and energy hub. Ethiopia brings a large and growing market and, through Ethiopian Investment Holdings, the capacity to mobilize investment and develop assets of national importance.

The Dangote Group brings capital, industrial experience and the ability to deliver at scale, he said.

Prime Minister Abiy commended Nigerian billionaire and industrialist Aliko Dangote for demonstrating that African enterprise can match ambition with action and compete globally.

He said the investment builds on that record in East Africa and represents a broader African development model.

“It is African capital building African infrastructure for African growth,” he said.

Prime Minister Abiy stressed that the groundbreaking must now be followed by implementation, saying the project’s success will ultimately be measured by the results experienced by citizens and businesses.

“We must now turn this commitment into a working pipeline,” he said.

“Our people must see the results: fuel arriving sooner, costs falling, reserves growing, and business becoming more competitive. That is the promise we make today and the one we will be measured by,” the Prime Minister said.

He thanked President Ismail Omar Guelleh for his leadership and Djibouti’s enduring partnership with Ethiopia, and expressed appreciation to Aliko Dangote for his confidence in Ethiopia and the future of Africa.

He also thanked Dr. George Elombi, President and Chairman of the African Export-Import Bank, for backing the project with financing.