By| Goodluck E.Adubazi, Abuja
The groundbreaking of the Damerjog pipeline and storage facility in Djibouti has been described as a major step towards strengthening energy security and deepening economic cooperation across East Africa.
Speaking at the groundbreaking ceremony alongside Djibouti President Ismail Omar Guelleh, Ethiopian Prime Minister Abiy Ahmed and African industrialist Aliko Dangote, President and Chairman of the Board of Directors of the African Export-Import Bank (Afreximbank), Dr. George Elombi, highlighted the African partnership behind the project.
Elombi said the project demonstrated what could be achieved when African governments, indigenous entrepreneurs and pan-African financial institutions combine resources and expertise to develop critical infrastructure.
The Damerjog project builds on the US$200 million oil jetty and pipeline financed by Afreximbank in 2023.
According to Elombi, the Bank is also set to finance the second phase of the jetty, estimated at US$130 million, while arranging an additional US$150 million facility for the development of critical industrial roads in Djibouti.
He said the investments form part of Afreximbank’s broader commitment to expanding Djibouti’s trade capacity and strengthening its role in regional commerce.
As part of the initiative, Afreximbank has approved trade confirmation lines for four Djiboutian banks and onboarded seven local banks onto its payment services programme.
The measures are expected to enhance access to trade finance, liquidity and regional payment services for businesses and financial institutions in the country.
Elombi also cited Tanzania’s 2.1-gigawatt Julius Nyerere Hydropower Station as another example of Africa’s growing capacity to deliver major infrastructure projects through African financing and expertise.
The hydropower project was built by African contractors and financed by Afreximbank alongside African commercial banks.
He said the Damerjog development and other projects across the continent demonstrate the potential of African-led investment and partnerships to drive infrastructure development, strengthen energy security and support regional economic integration.
The development comes amid growing efforts by African governments and financial institutions to mobilise domestic and continental capital for strategic infrastructure projects and reduce dependence on external financing.
