Ethiopia has launched a landmark $10 billion financing partnership with the African Development Bank (AfDB) to construct Bishoftu International Airport, poised to be one of Africa’s largest aviation hubs.
The East Africa project aims to transform regional and global air transport connectivity.
Historic Partnership for East Africa’s Aviation Future
At a high-profile ceremony in Addis Ababa, Ethiopian Airlines Group and the AfDB formalized the agreement, with the Bank serving as mandated lead arranger, global coordinator, and book runner. Nearly $8 billion of the required financing will be mobilized through this collaboration, with the AfDB planning to contribute $500 million, subject to Board approval.
The mandate letter was signed by Ethiopian Airlines Group Chief Commercial Officer Lemma Yadecha and AfDB President Dr. Akinwumi Adesina, alongside Ethiopia’s Minister of Finance Hon. Ahmed Shide. Dignitaries from Malawi, South Sudan, the Democratic Republic of Congo, Togo, and Zambia were also in attendance.
A Game Changer in African Aviation
Located 40 kilometers south of Addis Ababa, Bishoftu International Airport will initially handle 60 million passengers, expanding to 110 million, and manage 3.73 million tons of cargo annually. AfDB President Adesina described the initiative as “a game changer for Africa and global aviation,” commending Ethiopian Airlines for its role in regional integration and its record-breaking performance as Africa’s top airline.
Projected Capacity and Features
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Passenger capacity: 60 million initially, expandable to 110 million
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Cargo capacity: 3.73 million tons annually
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Facilities: Airport city with malls, hotels, recreation areas
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Connectivity: Direct rail and expressway links to Addis Ababa
Economic and Strategic Impact
The project supports AfDB’s “Integrate Africa” priority by strengthening cross-border trade and travel. Ethiopian Airlines CEO Mesfin Tasew emphasized that Bishoftu International Airport will serve as a pan-African gateway, boosting tourism, trade, and regional cooperation.
East Africa stands to benefit significantly from increased cargo handling capacity, faster passenger processing, and enhanced global connectivity, positioning Ethiopia as a central hub between Africa, Europe, the Middle East, and Asia.
Timeline and Investment Commitments
Groundworks are set to begin in late 2025, with Phase I scheduled for completion by November 2029. Ethiopian Airlines has allocated $350 million for livelihood restoration and resettlement for affected communities, demonstrating a commitment to inclusive development.
AfDB’s Track Record in Infrastructure
In the past decade, AfDB has financed over $55 billion in infrastructure projects. The Bank has successfully structured financing for major initiatives, including Ethiopia’s Aysha Wind Power Project and the Tanzania–Burundi–DR Congo Standard Gauge Railway.
Its 2016 $160 million corporate loan to Ethiopian Airlines supported fleet modernization, further cementing the partnership between the airline and the Bank.
Regional Significance for East Africa
Bishoftu International Airport will complement Bole International Airport, which will continue to handle domestic operations.
The expansion aligns with Ethiopia’s broader strategy to become a leading logistics hub, benefiting not only East Africa but also the wider continent.
Sources: African Development Bank Group (AfDB).
Prepared by Ivan Alexander Golden, Founder of THX News™, an independent news organization delivering timely insights from global official sources. Combines AI-analyzed research with human-edited accuracy and context.
