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Airports

$10 Billion Mega-Airport Financing Partnership Between Ethiopian Airlines and African Development Bank Takes Off

Strategic Insights

— 2 min read

The African Development Bank has taken a significant step towards realizing Ethiopia's vision for a new international airport that will rival some of the world's biggest, with a monumental signing ceremony marking the Bank's role as the initial mandated lead arranger, global coordinator, and book runner to mobilize nearly $8 billion of the $10 billion needed for the mega project. The new Bishoftu International Airport will have an initial capacity of 60 million passengers, eventually expanding to 110 million, and transport 3.73 million tons of cargo annually.

Key Takeaways:

  • The African Development Bank will provide financing of $500 million, subject to Board approval, for the new Bishoftu International Airport project.
  • The Bank will mobilize up to $8 billion in financing for the mega project, with the remaining $2 billion to be sourced from other investors.
  • The new airport will have an initial capacity of 60 million passengers, eventually expanding to 110 million, and transport 3.73 million tons of cargo annually.
  • Groundworks for the project 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.
  • The partnership between Ethiopian Airlines and the Bank is a fitting one, with Africa's largest airline partnering with the continent's biggest infrastructure financier to deliver a "game changer" for African and global aviation.
  • The Bank has a track record of responsibly structuring and mobilizing financing from commercial banks, development finance institutions, and institutional investors for structured projects across the continent.
  • The Bishoftu International Airport will serve international passenger and cargo traffic, complementing Bole International Airport, which will retain Ethiopian's domestic operations.
  • Ethiopian Airlines Group has reported record revenues of $7.6 billion in the fiscal year ending 30 June 2025, reflecting an 8% year-on-year growth.

Statistics:

  • $500 million: The African Development Bank's proposed financing for the new Bishoftu International Airport project.
  • $8 billion: The amount of financing that the Bank will mobilize for the mega project.
  • 60 million: The initial capacity of the new Bishoftu International Airport, which will eventually expand to 110 million passengers.
  • 3.73 million tons: The annual cargo transport capacity of the new Bishoftu International Airport.
  • 2025: The expected start date for the groundworks of the project.
  • 2029: The expected completion date of Phase I of the project.
  • $7.6 billion: The record revenues reported by Ethiopian Airlines Group in the fiscal year ending 30 June 2025.
  • 8%: The year-on-year growth in revenues reported by Ethiopian Airlines Group in the fiscal year ending 30 June 2025.

Sources:

  • "The $10 Billion Mega-Airport Financing Partnership Between Ethiopian Airlines and African Development Bank Takes Off." African Development Bank, 12 Aug. 2023, https://www.afdb.org/en/news-and-events/press-releases/10-billion-mega-airport-financing-partnership-between-ethiopian-airlines-and-african-development-bank-takes-85992

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