AfDB to Mobilise $8B for Ethiopia’s New Bishoftu International Airport
The African Development Bank Group (AfDB) has signed a mandate to lead the mobilisation of $8 billion in debt financing for Ethiopia’s planned Bishoftu International Airport, a transformative infrastructure project expected to position the country as a global aviation hub.
At a signing ceremony held at the Ethiopian Skylight Hotel in Addis Ababa, AfDB President and Chairman of the Board of Directors, Dr Akinwumi A. Adesina, lauded Ethiopian Airlines’ track record as Africa’s leading carrier, noting its resilience during the COVID-19 pandemic and its consistent recognition as ‘Best Airline in Africa’ for seven consecutive years by Skytrax.
The new airport, to be built in Bishoftu, will initially handle 60 million passengers annually, with capacity to expand to 110 million in its second phase. It will also accommodate 3.7 million tonnes of cargo and parking for 270 aircraft, while enabling a 15% reduction in fuel consumption for Ethiopian Airlines. The total project cost is estimated at $10 billion.
“The Bishoftu airport will be a game changer for air transport in Africa and globally,” Dr Adesina said, commending Prime Minister Abiy Ahmed’s “visionary leadership” and the Government of Ethiopia’s rapid resettlement of 2,800 households affected by the development.
The AfDB will contribute up to $500 million of the debt financing from its own resources. The remaining funding will be raised from global lenders, with the Bank serving as Mandated Lead Arranger, Global Coordinator, and Bookrunner.
Dr Adesina highlighted the Bank’s track record as Africa’s largest infrastructure financier, having invested over $55 billion in infrastructure projects during his decade-long tenure. He also praised Ethiopian Airlines’ profitability, citing $7.2 billion in revenues in 2024 and a 24% rise in passenger numbers to 19 million.
Phase one of Bishoftu International Airport is expected to significantly ease congestion at Addis Ababa’s Bole International Airport, which is nearing its 25 million passenger capacity. Ethiopian Airlines is concurrently expanding its fleet from 126 to 240 aircraft.
As this marks Dr Adesina’s final official visit to Ethiopia as AfDB President, he expressed gratitude to the Ethiopian government, AfDB staff, and outgoing Country Manager Leandre Bassole for their role in securing the mandate.
“I look forward to flying Ethiopian Airlines back here in a few years and landing at the Bishoftu International Airport. What a great day that will be,” he said.
