A significant development in African aviation infrastructure is underway as Ethiopian Airlines Group and the African Development Bank (AfDB) have formalized a partnership to finance the ambitious Bishoftu International Airport project. Scheduled for completion in 2029, this greenfield facility is poised to become the largest airport in Africa and a pivotal global aviation hub. The agreement, signed on August 11, 2025, designates the AfDB as the Initial Mandated Lead Arranger (IMLA), tasked with providing $500 million in loans and spearheading the mobilization of additional funds for the expansive project.
Located in Abusera, approximately 40 kilometers south of Addis Ababa, the new airport represents a strategic expansion of Ethiopia's aviation capabilities. Ethiopian Airlines anticipates an initial annual passenger capacity of 60 million, with projections for expansion to 110 million. This substantial increase aims to alleviate current capacity constraints at Addis Ababa's Bole International Airport, which will continue to manage domestic flights while the new hub becomes the primary gateway for international passenger and cargo traffic. The project is a cornerstone of Ethiopian Airlines' Vision 2040 strategy, underscoring a commitment to network expansion and infrastructure development. Mesfin Tasew, Group CEO of Ethiopian Airlines, highlighted the project's significance as a decisive step towards a world-class pan-African gateway that will foster intra-African trade, regional integration, tourism, and global connectivity. Echoing this sentiment, AfDB President Dr. Akinwumi Adesina emphasized the project's alignment with the African Union's Agenda 2063 and the African Single Air Transport Market (SAATM), marking it as a proud moment for African aviation and infrastructure. The Bishoftu International Airport is envisioned as the anchor for a broader "aerotropolis," an integrated airport city designed to stimulate regional development, enhance logistics, and generate substantial employment opportunities. This concept, pioneered by experts like John Kasarda, focuses on creating economic centers around airports, leveraging their connectivity to foster business growth and efficiency. Financially, the project is a substantial undertaking, with the AfDB committed to anchoring the fundraising efforts. The overall project cost is estimated at $10 billion, with Ethiopian Airlines contributing 20% from its internal resources. The AfDB's involvement, including its commitment of up to $500 million pending board approval, signifies a strong belief in the project's potential to transform Ethiopia's economic landscape and solidify its position as a major global aviation player. The development aligns with Ethiopia's long-term economic strategy, aiming to harness aviation to drive foreign investment and enhance cross-continental connectivity, thereby competing with established hubs in Europe and Asia.