Billionare Aliko Dangote is helping to finance a $660 million refined petroleum products pipeline linking Ethiopia and Djibouti.

The 120-kilometre pipeline, announced by Ethiopian Investment Holdings, will connect Damerjog Port in Djibouti to a distribution facility in Dewele, with storage facilities planned at both ends.

The project is expected to begin operations within 18 months and is aimed at reducing logistics costs and delays for landlocked Ethiopia, which relies heavily on Djibouti for petroleum imports.

Ethiopian Prime Minister Abiy Ahmed said the pipeline would strengthen energy security along the corridor while improving the efficiency of petroleum distribution.

The investment comes as Dangote Group expands its infrastructure and manufacturing operations across Africa, including a $4 billion fertiliser pipeline and power plant and a polypropylene packaging facility in Ethiopia.

Dangote is also expected to break ground next week on a proposed 700,000-barrel-per-day refinery in Lamu, Kenya.