Key points:
- Ethiopian Airlines, AfDB sign airport deal
- $7.8bn project to boost capacity to 60m
- New hub set to drive tourism, trade growth
ETHIOPIAN Airlines has signed a landmark partnership with the African Development Bank (AfDB) to co-develop Ethiopia’s ambitious new mega international airport. The agreement, confirmed by the Ethiopian Ministry of Finance and reported on Saturday, marks a major step forward in the $7.8bn Bishoftu International Airport project.
The letter of intent was signed on Friday by Ethiopian Airlines Group CEO Mesfin Tasew and AfDB Vice President for Regional Development, Integration, and Business Delivery, Nnenna Nwabufo. Ethiopia’s Minister of Finance, Ahmed Shide, attended the ceremony and praised the AfDB’s ‘comprehensive support’ for Ethiopia’s development initiatives.
According to the Ministry of Finance, the AfDB’s current investment in Ethiopia exceeds $1.2bn, funding several key development sectors. Shide also highlighted the importance of Ethiopia’s ongoing macroeconomic reforms, describing them as essential for inclusive growth and long-term stability.
$7.8bn airport to expand Ethiopia’s aviation capacity
The Bishoftu International Airport is expected to become one of Africa’s largest aviation hubs. Scheduled to be completed by 2040, the new airport will increase Ethiopia’s annual passenger capacity from the current 17 million to over 60 million, according to the Ethiopian government. This expansion will reinforce Ethiopian Airlines’ position as the continent’s leading airline and boost the country’s bid to become a major tourism destination.
Ethiopian Airlines is spearheading the project, with full backing from the AfDB. The new facility will address increasing demand for both international and domestic flights, as the existing Addis Ababa Bole International Airport is nearing its operational capacity due to the rapid growth of the airline and the country’s aviation sector.
AfDB pledges strong support for continental flagship
AfDB President Akinwumi Adesina reaffirmed the bank’s full commitment to supporting the Bishoftu project. He described it as a ‘continental flagship project’ that will drive connectivity, commerce, and regional integration across Africa.
Both sides also pledged to strengthen their partnership through strategic, innovative collaborations aimed at benefiting Ethiopians and the broader region. Ethiopian Finance Minister Ahmed Shide urged the AfDB to continue supporting Ethiopia’s wider macroeconomic reforms and other transformative infrastructure projects.
Positioning Ethiopia as a key regional hub
The Ethiopian government expects the new mega airport to catalyse economic development by enhancing trade, tourism, and regional connectivity. As Ethiopian Airlines continues its rapid growth, the expanded capacity will enable the carrier to meet rising demand for passenger and cargo services, securing Addis Ababa’s role as a critical transit point for African and global travellers.
Ethiopian Airlines has long been recognised as a leader in African aviation, and this project underscores its ambitions to maintain and expand that leadership. The new airport is part of Ethiopia’s broader strategy to modernise its transport infrastructure and stimulate economic growth through increased global engagement.
A transformative project for Ethiopia and Africa
The Bishoftu International Airport project represents a bold vision for the future of Ethiopian aviation. With support from the AfDB and other stakeholders, the initiative is set to transform Ethiopia into a major aviation hub, unlocking opportunities for investment, tourism, and job creation.
The project aligns with Ethiopia’s macroeconomic reform agenda, which aims to create a robust and inclusive economy capable of withstanding global challenges.
