IFC Backs Ethiopia Hotel Expansion With $80 Million Loan

IFC Regional Vice President for Africa Ethiopis Tafara said tourism remains one of the strongest drivers of employment and business activity, generating opportunities across multiple industries.

The International Finance Corporation (IFC) is investing $80 million in Ethiopia's hospitality sector through a partnership with MIDROC Ethiopia PLC, a move expected to create thousands of jobs while expanding the country's capacity to host international visitors and major events.

The funding will support the refurbishment of the iconic Sheraton Addis hotel and the construction of a new Sheraton property in the Ethiopian capital, helping strengthen one of the country's most important economic sectors.

Investment Aims to Boost Jobs and Tourism

The project is expected to support more than 9,400 direct and indirect jobs across the economy, creating employment opportunities for young people and women who make up a significant portion of the hospitality workforce.

IFC Regional Vice President for Africa Ethiopis Tafara said tourism remains one of the strongest drivers of employment and business activity, generating opportunities across multiple industries. The investment comes at a time when Ethiopia is looking to strengthen economic growth through tourism, which contributes around 10 per cent of the country's gross domestic product and supports approximately 3.5 million direct and indirect jobs. With an estimated two million people entering the labour market each year, expanding employment opportunities remains a major national priority.

Sheraton Expansion to Support Major International Events

The financing package will help modernize the existing Sheraton Addis, one of Africa's best-known luxury hotels, while adding a new Sheraton-branded property to increase accommodation capacity in Addis Ababa. The additional rooms are expected to play an important role in hosting large international gatherings, including the United Nations Climate Change Conference scheduled for November 2027.

Industry observers note that demand for quality accommodation continues to grow as Ethiopia seeks to attract more business travellers, conference delegates and leisure tourists. MIDROC Investment Group Chief Executive Officer Jemal Ahmed Abdu described the partnership as strategically important for both the company and Ethiopia's hospitality industry, highlighting its potential contribution to employment and sector modernization.

Green Building Standards Included in Development

The project is also expected to introduce the country's first green-certified hotels, marking an important step for sustainable construction within Ethiopia's emerging green building sector. Beyond hospitality, the investment reflects a broader partnership between IFC and MIDROC Investment Group across several industries, including healthcare, manufacturing and agribusiness.

The World Bank Group says the project aligns with its development goals for Ethiopia by supporting economic diversification, value addition and private sector-led job creation. Officials believe the investment will strengthen tourism infrastructure, attract additional international visitors and contribute to long-term economic opportunities across the country.