Ethiopia and AfDB Join Forces for $7.8 Billion Abusera International Airport Project

The Abusera International Airport is a key pillar of Ethiopian Airlines Group’s 2035 strategic roadmap, which includes aggressive network expansion, human capital development, and infrastructure investment.

In a major step toward transforming East Africa’s air transport infrastructure, the African Development Bank (AfDB) and Ethiopian Airlines Group have signed a Letter of Intent (LoI) to collaborate on the $7.8 billion Abusera International Airport Project. This transformative development is set to position Ethiopia as a premier aviation hub on the continent while meeting the rising demand for passenger and cargo capacity.

The Letter of Intent was signed on Friday, 14 March, at the AfDB headquarters in Abidjan, Côte d'Ivoire. Ethiopian Airlines Group Chief Executive Officer Mesfin Tasew Bekele and AfDB Vice President for Regional Development, Integration and Business Delivery, Nnenna Nwabufo, led the official signing, reaffirming both institutions' commitment to fast-tracking regional integration and sustainable infrastructure development.

The Ethiopian delegation was led by Finance Minister Ahmed Shide and included top-level officials such as Adamu Tadele (CFO, Ethiopian Airlines Group), Tiguist Fisseha (Senior Advisor to the Finance Minister), Abraham Tesfaye (Infrastructure Director, Ethiopian Airlines Group), and Berhanu Anbessa (Head of IFIs, Ethiopian Ministry of Finance).

Next-Generation Airport for a Rapidly Expanding Market

The Abusera International Airport will be located in Bishoftu, about 40 kilometers southeast of the capital Addis Ababa, and is envisioned as a world-class aviation facility. It will serve as a complementary expansion to the recently upgraded Addis Ababa Bole International Airport, which is approaching its maximum annual capacity of 25 million passengers.

Designed to meet future air transport needs, Abusera will become a vital hub not only for Ethiopia but for the broader African continent. It will feature advanced cargo and passenger handling facilities, extensive runways, and cutting-edge digital infrastructure. The goal is to enhance Ethiopian Airlines’ global competitiveness, support its ambitious Vision 2035 strategy, and better link Africa with international markets.

A Symbol of African Excellence

During a meeting with the Ethiopian delegation, African Development Bank Group President Dr. Akinwumi Adesina praised the airline’s track record and affirmed the Bank’s unwavering support for the project. “I'm a great friend of Ethiopia, and of course, Ethiopian Airlines is Africa’s pride, a symbol of excellence and resilience,” he said. “The African Development Bank is fully committed to supporting this transformative flagship project, which will strengthen the continent’s aviation leadership and economic integration.”

Finance Minister Ahmed Shide echoed this sentiment, highlighting the significance of the partnership: “Today’s signing of the Letter of Intent for the new mega airport development project is yet another testament to AfDB’s commitment to supporting Ethiopia’s ambitious flagship air transport project. This project will not only reinforce Ethiopian Airlines’ competitive edge in passenger and cargo services, but also enhance Africa’s global air connectivity and integration.”

Strengthening Regional Ties and Boosting Trade

The airport’s development aligns with one of AfDB’s “High Five” priorities—specifically, fostering regional integration. By improving transport networks and borderless mobility, the airport will boost trade, tourism, and investment across the region. It also supports the African Continental Free Trade Area (AfCFTA) by improving access to regional and global markets.

Ethiopian Airlines has long played a leading role in connecting African nations. With Abusera, the airline is expected to expand its already robust network, which currently spans over 130 international destinations. The new airport will allow for more direct flights, reduced travel time, and increased air cargo capacity, benefiting industries like agriculture, pharmaceuticals, and e-commerce.

Surging Revenues and a Bold Vision for 2035

The Abusera International Airport is a key pillar of Ethiopian Airlines Group’s 2035 strategic roadmap, which includes aggressive network expansion, human capital development, and infrastructure investment.

In the fiscal year ending 30 June 2024, Ethiopian Airlines reported record revenues of $7.02 billion (more than 402 billion Ethiopian Birr), marking a 14% year-on-year increase. The airline carried a total of 17.1 million passengers, with 13.4 million traveling on international routes and 3.7 million domestically.

The airline’s profitability, operational resilience, and technological adoption have cemented its reputation as Africa’s largest and most successful carrier. The addition of Abusera International Airport is expected to further accelerate this momentum, with projections of increased employment, enhanced logistics capability, and stronger GDP contributions from aviation-related sectors.

Looking Ahead

As Ethiopia continues to pursue transformative infrastructure projects, the Abusera International Airport stands out as a milestone initiative with the potential to shape the nation’s economic future and redefine Africa’s role in global aviation. With strategic backing from the African Development Bank and the proven leadership of Ethiopian Airlines Group, the skies are looking increasingly promising for the Horn of Africa and beyond.