Fuelstor, a subsidiary of the Salaam Group, has officially commenced construction on a massive energy terminal at a cost of $160 million (30 billion Djibouti Francs). This project, believed to bring a significant shift to the East African energy sector, is a major private-sector investment designed to strengthen Djibouti’s role as a leading regional logistics and energy hub.
Situated within the strategic Damerjog industrial zone, the project spans 22 hectares and is designed as a sophisticated, modern, multi-purpose platform. The terminal will have the capacity to store, trade, and redistribute various petroleum products, Liquefied Petroleum Gas (LPG), and edible oils.
Countries in the Horn of Africa have long faced challenges regarding energy security and supply chain disruptions. With a projected capacity of 400,000 metric tons, the Fuelstor terminal arrives at a critical time for regional supply security. The project serves not only Djibouti but also acts as a primary logistics artery for neighboring countries with high fuel demands, particularly Ethiopia.
The expansion of storage capacity will serve as a “buffer shield,” enabling the region to withstand pressures caused by fluctuations in the global oil market.
“This project represents a major milestone for Fuelstor and a significant leap forward for the region’s energy and logistics landscape,” said Houssein Ahmed Houmed, General Manager of Fuelstor. “The Fuelstor terminal will be a key gateway connecting global supply markets with the growing demand in East Africa.”
The construction work is led by Somagec, a renowned international engineering firm, and is expected to create jobs for hundreds of Djibouti citizens during the construction phase. Beyond job creation, the project will facilitate the transfer of technical expertise in petroleum logistics and high-tech infrastructure management.
For the Salaam Group, this investment is a bold step toward diversifying its business beyond its strong presence in the financial sector. While the group is well-known for its Salaam Bank and investment institutions operating in Uganda, Kenya, South Sudan, and Malaysia, it has now demonstrated its entry into large-scale infrastructure and physical commodity trade.
The Damerjog hub is part of Djibouti’s “Vision 2035” plan to modernize the country. By leveraging Djibouti’s natural position at the crossroads of the Red Sea and the Gulf of Aden, the terminal is expected to make ship-to-shore transfers and distribution via rail and road much faster and more efficient.
