Salaam Group Launches USD 160 Million Djibouti Energy Hub Targeting Ethiopian, Regional Trade Flows

EBR_News May 13, 2026

Salaam Group has launched construction of a USD 160 million energy and logistics terminal in Djibouti, a project expected to strengthen fuel and commodity supply chains serving Ethiopia and the wider East African market.

The project, developed through Salaam Group subsidiary Fuelstor, officially broke ground this week in the strategic Damerjog corridor near Djibouti’s port infrastructure.

Spanning 22 hectares, the terminal will have storage capacity of approximately 400,000 metric tons for fuel, liquefied petroleum gas (LPG), and edible oil products. The facility is designed as an integrated storage, trading, and redistribution hub aimed at supporting growing regional demand and shifting trade routes across East Africa.

Fuelstor said the terminal’s logistics model is specifically structured around multimodal access to Ethiopia and neighboring regional markets, underlining Ethiopia’s continued importance as the primary trade destination linked through Djibouti’s ports.

“This project represents a defining milestone for Fuelstor and a significant step forward for the region’s energy and logistics landscape,” said Houssein Ahmed Houmed.

“Fuelstor Terminal is uniquely positioned to become a key gateway connecting global supply markets to growing demand across East Africa,” Houssein added.

The investment comes as Djibouti seeks to deepen its role as a regional logistics and transshipment hub amid rising demand for energy infrastructure, storage capacity, and trade connectivity in the Horn of Africa.

For Ethiopia, which relies heavily on Djibouti’s ports for imports including fuel and essential commodities, expanded storage and logistics infrastructure in the corridor could help improve supply reliability and regional trade efficiency.

The company said the project will support the movement and redistribution of strategic commodities while strengthening regional supply chain resilience at a time when global logistics disruptions and energy security concerns continue reshaping trade networks.

Construction is being handled by Somagec, an engineering firm involved in major maritime and industrial infrastructure projects.

Beyond logistics, the project is expected to generate hundreds of jobs during both construction and operational phases while contributing to local skills development and industrial activity in Djibouti.

Salaam Group said the investment aligns with its broader strategy of expanding across infrastructure and logistics sectors that support regional economic integration and long-term trade growth in Africa.

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