The International Finance Corporation (IFC) has announced an $80 million long-term loan to MIDROC Ethiopia PLC (MEP) to support the expansion and modernization of Ethiopia’s hospitality sector. The investment will fund the refurbishment of the iconic Sheraton Addis and the development of a new Sheraton hotel in Addis Ababa.
The project is expected to generate more than 9,400 direct and indirect jobs, creating new employment opportunities for young people and women. As tourism continues to play a vital role in Ethiopia’s economy, the investment is designed to strengthen the country’s capacity to attract both business and leisure travelers.
According to IFC, the initiative supports Ethiopia’s broader economic development goals by increasing quality accommodation options and stimulating local economic activity through tourism-related services.
The expanded hospitality infrastructure is expected to help Addis Ababa accommodate major international events, including the United Nations Climate Change Conference (COP32) scheduled for November 2027. The project will also introduce Ethiopia’s first green-certified hotels, advancing sustainable development within the country’s emerging hospitality market.
The investment reflects IFC’s growing partnership with MIDROC Investment Group, one of Ethiopia’s largest private sector conglomerates. Beyond hospitality, the collaboration extends across key sectors such as agribusiness, manufacturing, and healthcare, supporting economic diversification and long-term job creation.
With tourism contributing significantly to Ethiopia’s GDP and employment, the IFC-MIDROC partnership is expected to enhance the country’s competitiveness as a regional destination. The project highlights the role of private sector investment in expanding tourism infrastructure, creating jobs, and supporting sustainable economic growth across Ethiopia.
