Ethiopia's Ambitious New International Airport Project Takes Off with African Development Bank's Support

The Ethiopian government, led by Prime Minister Abiy Ahmed, has taken a significant step towards realizing its vision of developing a world-class airport in Bishoftu, located 40 kilometers south of Addis Ababa. The ambitious project, which aims to rival some of the world's biggest airports, has received a major boost with the African Development 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 Bank plans to provide financing of $500 million, subject to Board approval.

Key Takeaways:

• The new Bishoftu International Airport (BIA) will have an initial capacity of 60 million passengers, eventually expanding to 110 million, and transport 3.73 million tons of cargo annually.
• The 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.
• Groundworks are expected to begin late 2025, with Phase I expected to be completed by November 2029.
• The multi-billion-dollar project will serve international passenger and cargo traffic, complementing Bole International Airport, which will retain Ethiopian's domestic operations.
• Ethiopian Airlines Group has allocated a total of $350 million for livelihood restoration and resettlement of communities that will be affected by the construction.
• The project is aligned with the African Development Bank's High 5 priorities, which aim to integrate Africa by breaking down barriers, building cross-border links, and enabling African economies to trade, travel, and thrive together in a globally competitive environment.

Statistics:

• The project requires nearly $8 billion of the $10 billion needed for the mega project.
• The African Development Bank plans to provide financing of $500 million, subject to Board approval.
• The Bishoftu International Airport will initially serve 60 million passengers and transport 3.73 million tons of cargo annually.
• Phase I of the project is expected to be completed by November 2029.
• 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.

Sources:

• "Ethiopia and African Development Bank take off on Bishoftu International Airport project" by African Development Bank, 2025.
• "Adesina's speech on the launch of the Bishoftu International Airport" by African Development Bank, 2025.
• "African Development Bank supports landmark Bishoftu International Airport project" by African Development Bank, 2025.