Ethiopia Taps AfDB to Help Raise $8B for Mega Airport
TLDR
- Ethiopia has appointed the African Development Bank (AfDB) to lead efforts to secure up to $8 billion for the Bishoftu International Airport Development Project
- The financing agreement was signed in Addis Ababa by Ethiopian Airlines Group Chief Commercial Officer Lemma Yadecha and AfDB President Akinwumi Adesina
- The AfDB has earmarked as much as $500 million, pending board approval, as anchor funding for the $10 billion project
Ethiopia has appointed the African Development Bank (AfDB) to lead efforts to secure up to $8 billion for the Bishoftu International Airport Development Project, which could become Africa’s largest airport.
The financing agreement was signed in Addis Ababa by Ethiopian Airlines Group Chief Commercial Officer Lemma Yadecha and AfDB President Akinwumi Adesina. Finance Minister Ahmed Shide said the project will quadruple the country’s aviation capacity and double tourist arrivals within a decade.
The AfDB has earmarked as much as $500 million, pending board approval, as anchor funding for the $10 billion project. Located about 40 kilometers south of the capital, the airport will be built in two phases. The first phase will handle 60 million passengers annually, with capacity reaching 110 million by final completion in 2029.
Ethiopian Airlines plans to fund 20% of the total investment and begin construction in November after relocating farmers from the site.
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Key Takeaways
Ethiopia’s Bishoftu airport project signals its intent to position itself as Africa’s leading aviation hub, challenging established transit points in Dubai, Johannesburg, and Casablanca. The move comes as Addis Ababa Bole International Airport nears its 25 million passenger annual capacity, limiting growth opportunities for Ethiopian Airlines. The planned capacity of 110 million passengers would place Bishoftu among the world’s largest airports, enabling more long-haul connections and transit traffic between Africa, Europe, Asia, and the Americas. For Ethiopia, the hub could boost tourism, foreign investment, and cargo throughput, creating spillover benefits for hospitality, manufacturing, and trade sectors. With AfDB’s involvement and a phased funding approach, Ethiopia is also signalling a preference for diversified financing sources to mitigate reliance on a single lender or bilateral partner. Successful execution will depend on managing costs, meeting deadlines, and maintaining political and economic stability during the build-out.
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