$10B Bishoftu International Airport Project Set to Transform African Aviation
Ethiopia’s ambitious plan to construct the continent’s largest airport took a major step forward yesterday with the signing of a $10 billion financing mandate between Ethiopian Airlines Group and the African Development Bank (AfDB).
Under the agreement, the AfDB will serve as Mandated Lead Arranger, Global Coordinator, and Bookrunner, tasked with mobilising nearly $8 billion of the total cost. The Bank also intends to provide up to $500 million from its own resources, subject to Board approval.
The mandate letter was signed by Ethiopian Airlines Group Chief Commercial Officer Lemma Yadecha and AfDB President Dr Akinwumi A. Adesina in the presence of Ethiopia’s Minister of Finance, Ahmed Shide. Distinguished guests included Ethiopian Airlines Board Chair Lt General Yilma Merdassa, Malawi’s Finance Minister Simplex Chithyola, and senior diplomats from South Sudan, the Democratic Republic of Congo, Togo, and Zambia.
Located 40 kilometres south of Addis Ababa, the greenfield Bishoftu International Airport will initially handle 60 million passengers annually, rising to 110 million in its second phase. It will also manage 3.73 million tonnes of cargo and provide parking for 270 aircraft, while reducing Ethiopian Airlines’ fuel consumption by 15%.
Dr Adesina hailed the project as a “game changer for air transport in Africa and globally” and praised the “visionary leadership” of Prime Minister Abiy Ahmed, noting Ethiopia’s rapid pace of transformation. “Speed and scale are now the hallmarks of Ethiopia,” he said.
Ethiopian Airlines CEO Mesfin Tasew, represented at the signing by Lemma Yadecha, described the agreement as “a decisive step toward realising a world-class pan-African gateway” that will boost intra-African trade, regional integration, tourism, and global connectivity.
Construction is expected to commence in late 2025, with Phase I scheduled for completion by November 2029. The development will feature an “airport city” with hotels, shopping malls, recreational areas, and direct rail and expressway links to Addis Ababa.
Dr Adesina, making his final official visit to Ethiopia as AfDB President, underlined the Bank’s strong track record in financing transformative infrastructure, having invested over $55 billion in the past decade. He recalled the AfDB’s previous $160 million loan in 2016 to support Ethiopian Airlines’ fleet expansion.
The Bishoftu International Airport will complement Bole International Airport, which will continue to handle domestic flights. The project also aligns with the AfDB’s “Integrate Africa” priority, aimed at breaking down barriers, enhancing connectivity, and driving economic growth across the continent.
Ethiopian Airlines, Africa’s most awarded carrier, has reported record revenues of $7.6 billion for the fiscal year ending 30 June 2025, transporting 19 million passengers. The airline has committed $350 million towards resettlement and livelihood restoration for affected communities.
