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Ethiopian Airlines and AfDB Launch $10 Billion Airport Project

Ethiopian Airlines and AfDB Announce $10 Billion Bishoftu International Airport Project
Ethiopia has announced an ambitious plan to develop the Bishoftu International Airport (BIA), a $10 billion project intended to establish one of the world’s largest aviation hubs. The African Development Bank (AfDB) will lead the financing efforts, aiming to mobilize nearly $8 billion and providing an initial $500 million loan, subject to Board approval.
The agreement was formalized through a mandate letter signed by Ethiopian Airlines Group Chief Commercial Officer Lemma Yadecha and AfDB President Dr. Akinwumi Adesina. Ethiopia’s Finance Minister Ahmed Shide was present at the signing ceremony, alongside senior officials from Malawi, South Sudan, the Democratic Republic of Congo, Togo, and Zambia.
Project Scope and Strategic Importance
Situated 40 kilometers south of Addis Ababa, Bishoftu International Airport is designed to initially handle 60 million passengers annually, with plans to expand capacity to 110 million in the future. The airport will also accommodate up to 3.73 million tonnes of cargo each year. The development includes an integrated airport city featuring hotels, shopping malls, leisure facilities, and direct rail and expressway connections to the capital.
Dr. Akinwumi Adesina praised Ethiopian Airlines as “Africa’s oldest and best airline,” underscoring its pivotal role in regional integration. He highlighted that the new airport would significantly enhance the airline’s operational and fleet capacity while reinforcing Africa’s position in global aviation. Adesina also commended Prime Minister Abiy Ahmed for Ethiopia’s rapid transformation.
Ethiopian Airlines CEO Mesfin Tasew described the agreement as “a decisive step” toward establishing a pan-African gateway. The project is expected to stimulate intra-African trade, tourism, and connectivity, positioning Ethiopia as a central hub in the continent’s aviation landscape.
Challenges and Market Implications
Despite its promise, the project faces considerable challenges. Securing the full $10 billion will require extensive fundraising beyond the AfDB’s initial commitment. The initiative must also overcome complex regulatory and logistical obstacles while adhering to a tight schedule, with groundwork slated to begin in late 2025 and Phase I targeted for completion by November 2029.
Market reactions have been largely positive, with expectations that the project will attract increased investor interest in Ethiopian infrastructure. However, regional competitors may respond by upgrading their own hubs or enhancing operational efficiencies to maintain market share.
The AfDB brings a strong track record in infrastructure financing, having invested over $55 billion in the past decade. The Bank previously supported Ethiopian Airlines with a $160 million loan in 2016 and has backed major projects across Africa, including wind power initiatives in Ethiopia and regional railway developments.
Bishoftu International Airport will complement Addis Ababa’s Bole International Airport, which will continue to serve domestic flights. Together, these facilities are poised to reinforce Ethiopia’s status as a key aviation hub for Africa and beyond.

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