Keypoints:
- AfDB to raise $7.8bn for Ethiopia
- Bishoftu airport to serve 100m travellers
- Ethiopian Airlines to fund 20% of project
THE African Development Bank (AfDB) has been appointed lead arranger for a $7.8bn fundraising effort to build what will be Africa’s largest airport, near Ethiopia’s capital, Addis Ababa.
In a statement issued late Thursday, the AfDB said its role reflected its ‘catalytic role in advancing strategic infrastructure across the continent and its proven leadership in structuring complex transactions’.
The mega-airport, planned near the town of Bishoftu, around 45 km southeast of Addis Ababa, is expected to be operational by 2029 and will eventually handle up to 100 million passengers a year. It will be four times larger than the current Bole International Airport, which is nearing its maximum capacity.
Ethiopian Airlines to contribute 20 percent of funding
Ethiopian Airlines, Africa’s largest airline by fleet and revenue, is spearheading the project and has committed to contributing 20 percent of the estimated $10bn cost. The remaining 80 percent will be secured from creditors, with the AfDB coordinating the financing package.
CEO Mesfin Tasew confirmed the figures on Tuesday while presenting the airline’s financial results. He also said that planning and design are underway, following the signing of an agreement for a four-runway facility.
Tasew previously warned that Bole International Airport, which currently handles up to 25 million passengers per year, is quickly reaching its operational limits. The new facility is part of a strategic plan to expand Ethiopia’s aviation footprint and strengthen its role as a continental and global hub.
Signing ceremony slated for August 12
A formal signing ceremony will be held in Addis Ababa on Monday, August 12. Ethiopian Prime Minister Abiy Ahmed and AfDB President Akinwumi Adesina are expected to attend, underscoring the national and continental importance of the project.
The location near Bishoftu was selected for its ample space for future expansion and its proximity to the capital. The project is expected to generate thousands of construction and operational jobs and attract further investment in Ethiopia’s transport and logistics sectors.
Strategic play for Africa’s aviation future
Once completed, the Bishoftu airport will surpass all existing African aviation facilities in terms of scale and passenger capacity. It is designed to solidify Ethiopia’s ambition to position itself as a global aviation gateway connecting Africa to the world.
The African Development Bank’s role in structuring and mobilising the complex financial arrangement marks another milestone in its growing portfolio of infrastructure leadership across the continent. The bank has significantly increased its investments in transport, energy, and climate-resilient projects in recent years.
This project represents a flagship opportunity not just for Ethiopia, but for African aviation as a whole.
