Ethiopia, AfDB Seal $8B Financing Mandate for Mega Bishoftu International Airport

Ethiopian Airlines has earmarked $350 million for livelihood restoration and resettlement of communities affected by the project, signalling its commitment to socially responsible development.

Ethiopia’s ambitious plan to construct a world-class international airport capable of rivalling the busiest global hubs took a decisive step forward on Monday with the signing of a landmark financing agreement between the Ethiopian Airlines Group and the African Development Bank (AfDB).

In a high-profile ceremony in Addis Ababa, the AfDB was appointed as the initial mandated lead arranger, global coordinator, and book runner for mobilising up to $8 billion of the $10 billion needed for the new Bishoftu International Airport. Subject to Board approval, the Bank plans to contribute $500 million directly.

A Strategic Gateway for Africa

The signing ceremony brought together key dignitaries, including Ethiopian Airlines Group Chief Commercial Officer Lemma Yadecha, AfDB President Dr. Akinwumi Adesina, and Ethiopia’s Minister of Finance Ahmed Shide. Also present were the Ethiopian Airlines Board Chair Lt General Yilma Merdessa and senior diplomatic representatives from Malawi, 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, with future expansion planned to accommodate 110 million passengers and 3.73 million tons of cargo each year. The facility is envisioned as a pan-African gateway, reinforcing Ethiopian Airlines’ position as the continent’s largest and most successful carrier.

Economic Integration and Global Connectivity

Dr. Adesina praised Ethiopia’s determination and scale of ambition, calling the project “a testament to the power of vision, determination and resolve to put Africa at the top in global aviation.” He noted Ethiopian Airlines’ exceptional 75-year operational history, its role in supporting the global COVID-19 response, and its ongoing contribution to regional economic integration.

Ethiopian Airlines Group CEO Mesfin Tasew, represented at the event by Yadecha, said the airport would be “a world-class pan-African gateway that will boost intra-African trade, regional integration, tourism, and global connectivity.”

The new airport will complement Bole International Airport, which will retain domestic operations, and will feature an airport city with shopping malls, hotels, recreation areas, and direct transport links to Addis Ababa via rail and expressway.

Construction Timeline and Social Responsibility

Groundwork for the project is set to begin late 2025, with Phase I targeted for completion by November 2029. Ethiopian Airlines has earmarked $350 million for livelihood restoration and resettlement of communities affected by the project, signalling its commitment to socially responsible development.

AfDB’s Track Record in Mega Infrastructure

The Bishoftu project aligns with one of the AfDB’s High 5 priorities: Integrate Africa. The Bank will leverage its experience in structuring large-scale infrastructure financing, having supported projects such as the Aysha Wind Power Project in Ethiopia and the Tanzania-Burundi-DR Congo Standard Gauge Railway.

Under Dr. Adesina’s presidency, the AfDB has financed over $55 billion in infrastructure across the continent, including a $160 million corporate loan in 2016 for Ethiopian Airlines’ fleet expansion.

A Boost to Africa’s Aviation Future

With Ethiopian Airlines transporting 19 million passengers in the fiscal year ending June 2025 and generating record revenues of $7.6 billion, the new Bishoftu International Airport is expected to significantly expand capacity, speed, and connectivity. Its hub-and-spoke model, supported by subregional hubs, will further link African capitals and global destinations, enabling faster movement of people, goods, and services.

Dr. Adesina described the partnership as “a fitting match between Africa’s largest airline and its biggest infrastructure financier,” promising that the AfDB will “deliver so that Ethiopia can deliver this project for its people.”