Aliko Dangote Helps Fund $660m Fuel Pipeline Between Ethiopia and Djibouti

Aliko Dangote, Africa's richest man, has announced that he is helping to fund a new $660m fuel pipeline between Ethiopia and Djibouti.

The project will include a 120km pipeline connecting Djibouti's Damerjog port to a distribution facility in Dewele, Ethiopia, as well as storage capacity of about 400 million litres.

It is expected to begin operations within 18 months and reduce the time needed to transport fuel from Djibouti's port to the Ethiopian capital, Addis Ababa, from five days to one.

The first phase will transport key petroleum products, including jet fuel, diesel and petrol.

Speaking at the ground-breaking ceremony, Dangote said the project would strengthen Ethiopia's energy security and make its fuel supply chain more resilient.

Djibouti is also expected to benefit from increased port activity, job creation and higher government revenues.

The project is part of Dangote's wider expansion of infrastructure and manufacturing businesses across Africa.

Dangote Cement has production capacity of about 55 million tonnes a year, while his oil refinery in Nigeria currently has capacity to process 700,000 barrels of crude a day and is seeking to double that to 1. 4 million barrels a day. The refinery recently listed 4. 1 billion ordinary shares on the Nigerian stock exchange, aiming to raise about $1. 63bn (£1. 2bn). In Kenya, the company is due to break ground next week on a proposed 700,000-barrel-a-day crude oil refinery in Lamu.

Dangote speaks to the BBC about his new oil refinery in Kenya

'This is our company': Nigerians show off oil wealth after share-buying frenzy

Listen: Aliko Dangote: Africa’s richest person

Go to BBCAfrica. com, external for more news from the African continent.

Follow us on Twitter @BBCAfrica, external, on Facebook at BBC Africa, external or on Instagram at bbcafrica, external