Ethiopian Airlines Group has formally appointed the African Development Bank (AfDB) as the mandated lead arranger to secure USD 8 billion in debt financing for the construction of the new Bishoftu International Airport, a project anticipated to be the largest in Africa’s aviation sector.
The airport, to be situated in Abusera, Bishoftu, approximately 40 kilometres southeast of Addis Ababa, forms part of a USD 10 billion development plan to establish Ethiopia as a leading global air transport hub. The mandate agreement was signed by Ethiopian Airlines Chief Commercial Officer, Lema Yadecha, and AfDB President, Dr Akinwumi A. Adesina, in the presence of Ethiopia’s Minister of Finance, Ahmed Shide, and the airline’s Board Chairman, Lieutenant General Yilma Merdassa, who also serves as Commander of the Ethiopian Air Force.
Minister Shide described the airport as a “gateway to progress and prosperity”, emphasising its strategic importance for both Ethiopian and African connectivity. He noted that upon completion, the new facility will place Ethiopia among the top 20 global aviation hubs by 2035, with an initial capacity to accommodate 60 million passengers annually, expanding to 110 million in subsequent phases.
Dr Adesina commended Ethiopia’s ambition, remarking that the development would be a “game-changer” for global transport, with substantial implications for trade and tourism flows within and beyond Africa.
According to Ethiopian Airlines, the existing Bole International Airport handled 19 million passengers in the fiscal year ending 30 June 2025, approaching its expanded design capacity of 25 million. With forecasts projecting annual passenger volumes of up to 60 million by 2040, the airline concluded that a new, purpose-built hub is essential to meet long-term demand.
Master planning for Bishoftu International Airport was completed in 2022 following comprehensive feasibility studies. The first operational phase, scheduled for November 2029, will feature two parallel runways and terminal facilities spanning 775,000 square metres, accommodating 60 million passengers annually. At full build-out, the airport will operate four parallel runways and 1.5 million square metres of terminal space, handling up to 110 million passengers a year.
The facility will also serve as a major cargo hub, with an initial capacity of 2.1 million tonnes annually, rising to 3.73 million tonnes when fully developed. The surrounding Airport City development will include hotels, business parks, and leisure complexes, designed to stimulate local and national economic growth.
Lieutenant General Merdassa stated that the project would “position Ethiopia as a hub not only for Africa but for the world,” highlighting the airline’s track record of operational safety, customer service, and profitability despite industry challenges. Ethiopian Airlines, often referred to as the continent’s flagship carrier, has consistently ranked among Africa’s top-performing airlines in terms of passenger numbers, revenue, and global network reach.
The appointment of the AfDB underscores Ethiopia’s intent to leverage multilateral financing for strategic infrastructure, further aligning with continental initiatives to enhance intra-African connectivity. With construction expected to span over a decade, the Bishoftu International Airport represents a long-term commitment to strengthening Africa’s position in the global aviation industry.
