Ethiopia has begun preparations for a US$10 billion plan to build Bishoftu International Airport (BIA), set to rival the world’s largest hubs. The African Development Bank (AfDB) will lead the financing effort, aiming to mobilise nearly US$8 billion. It will also provide US$500 million, subject to Board approval.
The mandate letter was signed by Ethiopian Airlines Group Chief Commercial Officer Lemma Yadecha and AfDB President Dr Akinwumi Adesina. Ethiopia’s Finance Minister Ahmed Shide attended, along with senior officials from Malawi, South Sudan, the Democratic Republic of Congo, Togo, and Zambia.
BIA will be located 40 kilometres south of Addis Ababa. Initially, it will handle 60 million passengers a year, with capacity rising to 110 million. Cargo handling will reach 3.73 million tonnes annually. The site will also include an airport city with hotels, shopping malls, leisure facilities, and direct rail and expressway links to the capital.
AfDB President Adesina praised Ethiopian Airlines as “Africa’s oldest and best airline” and vital for regional integration. He said the project would expand the airline’s operational and fleet capacity while boosting Africa’s role in global aviation. He also commended Ethiopia’s Prime Minister Abiy Ahmed for his rapid transformation of the country.
Ethiopian Airlines CEO Mesfin Tasew called the agreement “a decisive step” toward creating a pan-African gateway. The project is expected to enhance intra-African trade, tourism, and connectivity. Groundwork is set to begin in late 2025, with Phase I scheduled for completion by November 2029.
AfDB has a strong record in infrastructure finance, having invested over US$55 billion in the past decade. It has previously backed Ethiopian Airlines with a US$160 million loan in 2016. The Bank also supports major African projects, such as wind power in Ethiopia and regional railway schemes.
BIA will complement Addis Ababa’s Bole International Airport, which will keep domestic operations. Together, the two airports will strengthen Ethiopia’s position as a key aviation hub for Africa and beyond.
