Ethiopia’s new mega hub a step closer to reality

The African Development Bank (AfDB) is to play a leading role in efforts to find up to $10 billion in funds to finance the construction of a potentially new game changing airport for Ethiopia.

Under an agreement signed between AfDB and the Ethiopian Airlines Group, the bank been appointed as the “mandated lead arranger, global coordinator and book runner” to mobilise nearly $8 billion of the $10 billion needed for the mega project.

It will provide $500 million in financing for the planned new Bishoftu International Airport (BIA), which will be located 40 kilometres south of capital, Adis Ababa.

The airport, say its backers, will finally give Ethiopia a state-of-the-art international airport that will rival some of the world’s biggest gateways.

According to the initial proposals, the greenfield airport will have an initial capacity of 60 million passengers per annum, eventually expanding to 110 million, and be capable of handling up to 3.73 million tons of cargo annually.

Dr Akinwumi Adesina, president of the AfDB, said: “The African Development Bank is proud to partner with Ethiopia in its vision to expand the operational and fleet capacity of the Ethiopian Airlines,” praising Ethiopia for putting “Africa at the top in global aviation.”

He continued: “With its 75 years of operational history, Ethiopian airlines is Africa’s oldest and best airline. It is critical for regional economic integration, connecting capitals, people and markets, with its globally rated cargo facilities.”

Ethiopian Airlines Group’s chief commercial officer, Lemma Yadecha said: “The signing of this mandate letter marks a decisive step toward realising a world-class pan-African gateway that will boost intra-African trade, regional integration, tourism, and global connectivity.”

The country’s Minister of Finance, Ahmed Shide, believes that the new airport will position Ethiopia among the world’s top 20 aviation hubs by 2035.

Groundworks on the new airport are expected to begin late 2025, with Phase I expected to be completed by November 2029.

The multi-billion-dollar project will include an airport city with facilities such as shopping malls, hotels, recreation areas, as well as direct rail and expressway links to Addis Ababa.

Ethiopian Airlines Group can lay claim to being Africa’s most successful airline. It has won Skytrax’s ‘Best Airline in Africa’ award for seven successive years, and in the fiscal year ending June 30, 2025, reported record revenues of $7.6 billion (+8%).

It has allocated a total of $350 million for livelihood restoration and resettlement of communities that will be affected by the construction.