Ethiopian Airlines, AfDB Seal $500m Financing Deal for Africa’s Largest Airport in Bishoftu

…Bishoftu set to host a world-class aviation hub with capacity for 110 million passengers annually

Poised to transform air connectivity across Africa, Ethiopian Airlines Group (EAG) and the African Development Bank (AfDB) have signed a mandate letter appointing the Bank as Initial Mandated Lead Arranger (IMLA) for the financing of Ethiopian Airlines’ new mega airport in Bishoftu.

The signing, which follows the Letter of Intent agreed on 24 March 2025, will see AfDB provide a USD 500 million loan and lead the mobilisation of additional funding required for the continent’s most ambitious airport development to date.

Located in Abusera, 40 kilometres south of Addis Ababa, the state-of-the-art greenfield facility will open with a capacity to handle 60 million passengers annually, with plans to expand to 110 million – making it the largest airport in Africa and one of the world’s top global hubs.

Ethiopian Airlines Group CEO, Mesfin Tasew, hailed the agreement as a major milestone in the airline’s quest to lead aviation growth in Africa.

“We are pleased to partner with the African Development Bank in arranging the required financing for this iconic aviation infrastructure,” he said. “The signing of this mandate letter marks a decisive step toward realising a world-class pan-African gateway that will boost intra-African trade, regional integration, tourism, and global connectivity.”

AfDB President, Dr Akinwumi Adesina, echoed the sentiment, describing the deal as a proud moment for African aviation.

“This is a decisive step toward creating a pan-African gateway that will not only connect the continent but also serve as a powerful driver of trade, tourism, and regional integration,” he said.

The AfDB’s role aligns closely with the African Union’s Agenda 2063 and the African Single Air Transport Market (SAATM), reinforcing the Bank’s position as a catalyst for strategic infrastructure that meets Africa’s long-term development priorities.

The Bishoftu mega airport is expected to complement Addis Ababa’s Bole International Airport, which will continue to handle domestic flights, while the new hub will focus on international passenger and cargo traffic.

Beyond boosting air connectivity, the airport will anchor an aerotropolis designed to stimulate regional economic growth, enhance logistics capacity, and create tens of thousands of jobs.

The development is part of Ethiopian Airlines Group’s ambitious Vision 2040 strategy, which focuses on network expansion, infrastructure growth, and human capital development to enhance global competitiveness.

The airline – Africa’s largest and most profitable – closed its last fiscal year on 30 June 2025 with record revenues of USD 7.6 billion, an 8% increase year-on-year, carrying 19 million passengers, including 15.1 million on international routes.

Once operational, the Bishoftu mega airport is expected to redefine African aviation, setting new benchmarks in capacity, service, and economic impact.