Ethiopia has moved closer to building Africa's largest airport after signing a mandate letter with the African Development Bank (AfDB) to arrange financing for a new greenfield facility in Bishoftu.
- •The Bishoftu International Airport will sit 40 kilometers south of Addis Ababa in the Abusera area and will start with a capacity of 60 million passengers a year and grow to 110 million.
- •The design includes multiple runways, extensive parking for aircraft, and modern terminals for passengers and cargo.
AfDB will provide a US$ 500 million loan and act as Initial Mandated Lead Arranger to secure the remaining funding, which will come from a mix of multilateral lenders, commercial banks, and potential bond issuances.
Earlier estimates put the total cost between US$ 7.8 billion and US$ 10 billion, to be implemented in phases to match demand growth. Ethiopian Airlines Group will contribute roughly 20% of the financing, drawn from internal resources and strategic partnerships, and will lead project design, construction oversight, and operational planning.
Ethiopian Airlines Group CEO Mesfin Tasew has said that the deal marks a decisive step toward creating a pan-African gateway that will boost trade, tourism, and connectivity. AfDB President Dr. Akinwumi Adesina noted the project shows African leadership in delivering major infrastructure in line with the African Union's Agenda 2063 and the Single Air Transport Market.
Operational Role and Development Goals
The new airport will handle all international passenger and cargo operations, while Bole International Airport, which has already reached its 25 million passenger annual capacity, will focus on domestic flights. Bishoftu will anchor an aerotropolis to drive regional development, improve logistics, and create tens of thousands of jobs.
For Ethiopian Airlines, the project is central to long-term growth. In the fiscal year ending June 30, 2025, the airline recorded revenues of US$ 7.6 billion, up 8% from the previous year, and carried 19 million passengers.
Construction is slated to start in late 2025 and be completed by 2029.