The African Development Bank (AfDB) said on Monday it will contribute $500 million to the construction of an airport near the Ethiopian capital expected to become the continent’s largest.
The massive travel hub in Bishoftu, roughly 45 kilometres (28 miles) south of the capital Addis Ababa, will cost an estimated $10 billion and be able to handle some 110 million passengers a year at full capacity, according to the AfDB.
The new greenfield Bishoftu International Airport (BIA), located 40 kilometers south of Addis Ababa, will have an initial capacity of 60 million passengers, eventually expanding to 110 million, and transport 3.73 million tons of cargo annually.
The mandate letter was signed by Ethiopian Airlines Group Chief Commercial Officer Lemma Yadecha and the President of the African Development Bank Group Dr. Akinwumi Adesina, in the presence of Ethiopia’s Minister of Finance, Hon. Ahmed Shide.
“The African Development Bank is proud to partner with Ethiopia in its vision to expand the operational and fleet capacity of the Ethiopian Airlines,” Adesina said, praising Ethiopia for putting “Africa at the top in global aviation.”
“With its 75 years of operational history, Ethiopian airlines is Africa’s oldest and best airline. It is critical for regional economic integration, connecting capitals, people and markets, with its globally rated cargo facilities,” he added.
Similarly, Ethiopian Airlines Group CEO Mesfin Tasew, who was represented at the signing ceremony by Chief Commercial Officer Yadecha, said, “The signing of this mandate letter marks a decisive step toward realizing a world-class pan-African gateway that will boost intra-African trade, regional integration, tourism, and global connectivity.”
Groundworks are expected to begin late 2025, with Phase I expected to be completed by November 2029. The multi-billion-dollar project will include an airport city with facilities such as shopping malls, hotels, recreation areas, as well as direct rail and expressway links to Addis Ababa.
According to a statement by the Bank, Adesina, making his last official visit to Ethiopia, praised the “visionary leadership” of Ethiopia’s Prime Minister, Abiy Ahmed, who he noted is transforming the country “every hour, every day, every week, at scale. Speed and scale are now the hallmarks of Ethiopia.”
“In the past ten years under my Presidency, the Bank has financed over $55 billion in infrastructure,” Adesina said, pledging to “do all we can to support Ethiopia to achieve its dream.” He noted that the African Development Bank in 2016 extended a $160 million corporate loan to support the modernization and expansion of Ethiopian Airline’s fleet.
“I wish to assure you that the African Development Bank will deliver, so that this project can be delivered by Ethiopia for its people,” said Adesina.
The Ethiopian Airlines Group and the AfDB had signed a Letter of Intent on March 24, 2025 to partner for the financing of the flagship project.
