Landmark $500M Boost as AfDB Funds Ethiopia’s Mega Airport

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The African Development Bank (AfDB) has committed a significant $500 million loan to the Ethiopian Airlines Group (EAG).

This funding is for the new Bishoftu airport project, which is set to become Africa’s largest aviation hub. AfDB

Additionally, the AfDB will lead the effort to mobilize the remaining finances needed for this major infrastructure project. The new airport is an important part of the continent’s growing aviation sector.

The construction of the Bishoftu International Airport, which upon completion will be Ethiopian Airlines’ new global hub and Africa’s largest airport, will cost a total of $10 billion. Ethiopian Airlines

Under the agreement signed, the Bank will lead resource mobilization efforts to raise debt financing of up to $8 billion.

Located in Abusera, just south of Addis Ababa, the new greenfield airport will have a massive initial capacity.

The airport is designed to handle 60 million passengers annually. Future expansion plans could see this capacity grow to 110 million.

This will make it one of the top global hubs and the largest airport in all of Africa. The project aligns with African Union’s Agenda 2063, boosting regional connectivity.

Ethiopian Airlines Group CEO Mesfin Tasew expressed his delight about the partnership. He said, “The signing of this mandate letter marks a decisive step toward realizing a world-class pan-African gateway.”

This infrastructure will boost intra-African trade, regional integration, tourism, and global connectivity.

Mr. Tasew emphasized the airline’s commitment to leading the enhancement of the aviation industry across the continent.

 President of the AfDB, Dr. Akinwumi Adesina, also highlighted the project’s importance. He called it a “proud moment for African aviation and infrastructure.”

He believes this gateway will significantly enhance regional integration and trade. The AfDB’s role as Initial Mandated Lead Arranger (IMLA) shows its commitment to strategic African infrastructure.

This leadership in structuring complex deals therefore helps align public and private capital with the continent’s long-term development.

In addition, this mega airport will serve as the future hub for all international passenger and cargo traffic. It will work alongside Bole International Airport, which will focus on domestic operations.

Meanwhile, construction of the airport’s first phase will begin in late 2025.

Once operational, it will be one of Africa’s prime aviation hubs for international, regional, and cargo traffic, while complementing the existing Bole International Airport in Addis Ababa, which will shift its focus to domestic operations.

Moreover, the appointment of the AfDB as mandated lead arranger reflects its catalytic role in advancing strategic infrastructure projects across the continent.

This role is further strengthened by its proven leadership in supporting African champions and promoting regional integration.

The new aerotropolis will also stimulate regional development and enhance logistics capacity. It is expected to generate tens of thousands of jobs, significantly benefiting the local economy.

The AfDB is committed to advancing key infrastructure that supports the African Single Air Transport Market (SAATM).

Consequently, this project not only meets growing air traffic demands but also represents African-led development excellence. It is a testament to the Bank’s unique capacity to drive complex projects.

Ethiopian Airlines Group is Africa’s most successful airline. It is actively pursuing its ambitious 2040 growth strategy, with the AfDB and other partnerships.

This strategy focuses on network expansion and key infrastructure development, such as this new airport.

The airline aims to enhance its global competitiveness through continuous investment in human capital and facilities.

In the last fiscal year, the airline reported record revenues of USD 7.6 billion. This was an impressive 8% year-on-year growth. The airline also transported a total of 19.0 million passengers.

Of these, 15.1 million were on international routes, and 3.9 million were on domestic flights. This robust performance demonstrates the airline’s strong position in the market.