Ethiopia is taking a major step toward its ambitious goal of becoming Africa’s leading aviation hub after signing an agreement with the African Development Bank (AfDB) to support the construction of a new US $7.8 billion international airport.
- •The planned airport, to be located in Bishoftu—about 40 kilometers southeast of Addis Ababa—aims to relieve pressure on Bole International Airport, which is nearing capacity as Ethiopian Airlines expands its fleet and route network.
- •The accord was signed on Friday between Ethiopian Airlines CEO Mesfin Tasew and AfDB Vice President Nnenna Nwabufo – with Ethiopia’s Finance Minister Ahmed Shide, describing the AfDB’s support as “critical” to the country’s economic transformation.
The airport will increase annual passenger capacity from 17 million to over 60 million by 2040, reinforcing the airline’s dominance in African aviation.
The Ethiopian government has yet to disclose a financing structure for the project, but officials say they are exploring a mix of public and private investment.
The project aligns with Ethiopia’s broader economic strategy, which includes ongoing macroeconomic reforms aimed at stabilizing inflation, attracting foreign investment, and boosting infrastructure development.
AfDB President Akinwumi Adesina pledged the bank’s “full commitment” to the project, calling it a “continental flagship” that will enhance regional connectivity and economic integration.
The Finance Minister—Shide—urged the AfDB to extend its financial and technical support beyond aviation, highlighting the country’s need for investment in energy, transport, and industrialization. The lender’s current support portfolio in the country stands at US$1.2 billion.
Ethiopian Airlines is Africa’s largest and most profitable carrier—outpacing regional rivals by leveraging its Addis Ababa hub as an icon for intercontinental travel. The new airport is expected to further solidify its position against competitors such as Kenya Airways and South African Airways, which have struggled with financial losses and required constant government bailouts.
