Africa's richest man helps fund $660m fuel pipeline between Ethiopia and Djibouti

According to Nigerian billionaire Aliko Dangote has, he is helping to fund a new $660m (£500m) fuel pipeline between Ethiopia and Djibouti.

Key points

• The refinery lately listed 4.1 billion ordinary shares on the Nigerian stock exchange, aiming to raise concerning $1.63bn (£1.2bn).
• In Kenya, the firm is due to break ground next week on a proposed 700, 000-barrel-a-day crude oil refinery in Lamu.
• Speaking at the ground-breaking ceremony, Dangote, Africa's richest man, remarked the project would strengthen Ethiopia's energy security and produce its fuel supply chain more resilient.
• The project is part of Dangote's wider expansion of infrastructure and manufacturing businesses throughout Africa.
• Landlocked Ethiopia relies heavily on Djibouti's port for imports, including petroleum products.

As well as storage capacity of regarding 400 million litres, the project will include a 120km- (75 mile-) pipeline connecting Djibouti's Damerjog port to a distribution facility in Dewele, Ethiopia. It is projected to commence operations within 18 months.

Ethiopian Prime Minister Abiy Ahmed remarked the pipeline would reduce the time needed to transport fuel from Djibouti's port to the Ethiopian capital, Addis Ababa, from five days to one.

In practice, the first phase will transport key petroleum products, including jet fuel, diesel and petrol.

Landlocked Ethiopia relies heavily on Djibouti's port for imports, including petroleum products. The new infrastructure is projected to reduce pressure on existing transport systems supporting industries, including transport, aviation, agriculture and construction.

Djibouti is additionally anticipated to benefit from rose port activity, job creation and higher administration revenues.

For context, the project is part of Dangote's wider expansion of infrastructure and manufacturing businesses throughout Africa.

While his oil refinery in Nigeria at present has capacity to process 700, 000 barrels of crude a day and is seeking to double that to 1.4 million barrels a day, dangote Cement has production capacity of regarding 55 million tonnes a year.

Meanwhile, the refinery lately listed 4.1 billion ordinary shares on the Nigerian stock exchange, aiming to raise concerning $1.63bn (£1.2bn).

In Kenya, the firm is due to break ground next week on a proposed 700, 000-barrel-a-day crude oil refinery in Lamu. You may additionally be interested in.

'This is our firm': 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.

In short, africa' s richest man helps fund $660m fuel pipeline between Ethiopia and Djibouti is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.