Ethiopia has taken a major step toward building the new Bishoftu International Airport, a $10 billion mega-project designed to rival some of the world’s largest airports. In a high-profile signing ceremony, the African Development Bank (AfDB) was confirmed as the initial mandated lead arranger, global coordinator, and book runner, tasked with mobilizing nearly $8 billion of the funding. The Bank plans to directly contribute $500 million, pending Board approval.
Located 40 kilometers south of Addis Ababa, the greenfield airport will initially handle 60 million passengers annually, with capacity to expand to 110 million, and will manage 3.73 million tons of cargo each year. Alongside the airport, an “airport city” will be developed, featuring hotels, shopping malls, recreational areas, and direct rail and expressway connections to the capital. Groundworks are scheduled to begin in late 2025, with Phase I expected to be completed by November 2029.
AfDB President Dr. Akinwumi Adesina praised Ethiopia’s vision and Prime Minister Abiy Ahmed’s leadership, calling the project a “game changer” for African and global aviation. Ethiopian Airlines Group CEO Mesfin Tasew highlighted its potential to enhance intra-African trade, regional integration, tourism, and global connectivity. The airline’s hub-and-spoke network is already a leading driver of African connectivity, and the new facility will significantly expand reach and efficiency.
The AfDB has a strong track record in structuring major infrastructure financing across Africa, including transformative transport and energy projects. In 2016, it extended a $160 million corporate loan to support Ethiopian Airlines’ fleet modernization. Ethiopian Airlines, Africa’s most awarded carrier with over 75 years of history, posted record revenues of $7.6 billion in 2025, carrying 19 million passengers.
To support local communities, $350 million has been allocated for livelihood restoration and resettlement of those affected by the project. Once operational, the Bishoftu International Airport will complement Addis Ababa’s Bole International Airport, which will focus on domestic operations, and position Ethiopia as one of the most important aviation hubs in the world.
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