The project is being done with backing from Africa investor company, Salaam Group Djibouti has commenced construction of a $160 million (Sh20.7 billion) fuel terminal expected to strengthen energy security in the region, as the East African Community mulls a refinery in Tanga.
Kenya, Uganda and Tanzania’s are harmonising plans to construct a joint petroleum refinery, an idea being driven by Nigerian billionaire Aliko Dangote. As the three EAC member states debate on their joint project, construction works at the Fuelstor Terminal in Djibouti have already kicked off.
The project, located in the strategic Damerjog corridor and being done with the backing of the Salaam Group, is being hailed as a milestone in Djibouti’s energy infrastructure. Salaam Group is an investor company that provides investment banking solutions for the electric, banking, and energy sectors, and is one of the fastest-growing companies in Africa.
It comes at a time when African economies are grappling with supply chain disruptions and volatile oil markets, recently fuelled by the Middle East crisis. The groundbreaking ceremony on Tuesday attracted senior government officials, industry players and international partners, underscoring the project’s regional significance as East African countries seek more resilient fuel supply networks.
Beyond being a conventional storage facility, Fuelstor is being developed as an integrated logistics and trading platform aimed at supporting increasing regional demand for petroleum products, liquefied petroleum gas (LPG), edible oil and other essential commodities.
It is expected to improve energy supply and strengthen regional trade and economic growth. The East African economies remain vulnerable to global geopolitical tensions that often trigger spikes in shipping costs and fuel prices. Countries such as Kenya, Uganda, Rwanda, South Sudan and Ethiopia heavily rely on imported refined fuel products transported through regional ports and corridors.