Ethiopia gets AfDB funds for new mega airport

Ethiopian Airlines and the African Development Bank (AfDB) have signed a mandate letter for financing what will be Africa’s largest aviation infrastructure project

The bank will contribute US$500mn towards the financing of the new Bishoftu airport, which is expected to be Africa's largest when completed in 2029.

The four-runway airport, to be sited near the town of Bishoftu, about 45 km southeast of Addis Ababa, will position Ethiopia as a leading air transport hub for the continent.

The total project cost is estimated at around US$10bn, with the airline expecting to provide around 20% of the funding and the rest to come from creditors.

The signing of the mandate letter — naming AfDB as Initial Mandated Lead Arranger for the financing of the mega airport — is a big step in attracting full funding for the remainder of the project.

“We are pleased to partner with the African Development Bank in arranging the required financing for the development of this iconic aviation infrastructure,” said Ethiopian Airlines Group CEO Mesfin Tasew.

“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 new greenfield airport will have an initial capacity of 60 million passengers annually, with future expansion to 110 million, making it the largest airport in Africa, and one of the top global hubs.

The mega airport will serve as a future international hub for passenger and cargo traffic at Addis Ababa, complementing the existing Bole International Airport, which will retain its domestic operations.

The airport will also anchor a so-called ‘aerotropolis’ designed to stimulate regional development, enhance logistics capacity and generate tens of thousands of jobs.

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