Ethiopia and Djibouti Concluded Memorandum of Understanding to explore a joint opportunities for the development of oil storage facility in Djibouti’s Damerjog Industrial Park on May 4, 2020 in Djibouti. The MoU was signed by Mr. Mamo Merhertu, Chief Executive Officer of Ethiopian Investment Holdings, a holding company belonging to Federal Democratic Republic of Ethiopia and Mr. Aboubaker Omar Hadi, Chairman of Djibouti Ports and Free zones Authority and Great Horn Investment Holding.
The MoU intends to create conducive environment for future joint development of oil storage terminal in Djibouti which will ultimately take the existing well founded strong economic ties between the two sisterly countries to the next high level. To this end, it envisages several mechanisms through which the two countries will endeavor to work in the spirit of collaboration to find the possibility of forging a cooperation to set up an oil storage facility in Damerjog with a view to provide storage services to petroleum products destined for the gateway demand of both Djibouti’s and Ethiopia’s markets as well as Transshipment.
The signature of the MOU was attended by H.E Ambassador Berutukan Ayano, State Minister for Foreign Affairs of the FDRE and H.E. Berhanu Tsegaye, Ambassador Extraordinary and Plenipotentiary of the FDRE to the Republic of Djibouti.
During the signing ceremony of the document, the high officials of both countries underscored that the new initiative is critically important to ensure a sustainable oil supply to Ethiopia’s increasing demand since the current trend indicates that the country’s oil demand shows roughly 10 percent increment every year.
