- Ethiopian Airlines: “With forecasts projecting up to 60 million passengers annually by 2040, expanding Bole International Airport further is not feasible, making a new mega-hub airport essential.”
- Groundworks for Ethiopian Airlines new address, Bishoftu International Airport, are expected to start late 2025, with phase one set for completion by November 2029.
- The $10 billion project will include an airport city complete with shopping malls, hotels, recreation areas, as well as direct rail and expressway links to Addis Ababa.
Ethiopian Airlines ambition to turn into a global aviation giant has received a boost after authorities in the country entered into a deal with the African Development Bank (AfDB) to raise the billions required to build a new, modern airport.
AfDB has been contracted as the lead arranger, global coordinator and book runner to mobilize nearly $8 billion of the $10 billion needed to construct a new greenfield: Bishoftu International Airport (BIA).
Bishoftu International Airport (BIA) is projected to will have an initial capacity of 60 million passengers, before pushing it up to 110 million annually. What’s more, the new airport roughly 40 kilometres from Addis Ababa is projected to transport about 3.73 million tonnes of cargo every year.
Ethiopia eyes ‘world’s top 20 aviation hubs by 2035’ status
“This world-class airport will serve as a vital gateway to progress and prosperity. More than a transport hub, it is a transformative project that will position Ethiopia among the world’s top 20 aviation hubs by 2035,” stated Foreign Affairs Minister Ahmed Shide.
According to Ethiopian Airlines Chief Commercial Officer Lema Yadecha, the aviation company’s current address, Bole International Airport, handled 19 million passengers, nearing its expanded capacity of 25 million.
“With forecasts projecting up to 60 million passengers annually by 2040, expanding Bole further is not feasible, making a new mega-hub airport essential,” explained Yadecha.
According to an update, AfDB plans to advance up to $500 million in financing to the new project.
“The African Development Bank is proud to partner with Ethiopia in its vision to expand the operational and fleet capacity of the Ethiopian Airlines,” AfDB President Dr. Akinwumi Adesina said at the signing ceremony, lauding 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,” the Bank Group chief said.
Other guests at the ceremony included Ethiopian Airlines Group Board Chair Hon. Lt General Yilma Merdessa, Malawi’s Minister of Finance and Economic Affairs Simplex Chithyola, South Sudan’s Ambassador to Ethiopia Boutros Thok Deng, the Democratic Republic of Congo’s Chargé d’affaires in Ethiopia Exkael Kabongo, his Togolese counterpart Thomas Deji, and Zambia’s Nawa Sibongo.
Boost intra-African trade
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.
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.”
He summed up the financing partnership between Ethiopian Airlines and the Bank as a fitting one between Africa’s largest airline—with an especially noteworthy record of supporting the global response to the Covid19 pandemic—and the continent’s biggest infrastructure financier, to deliver a “game changer” for African and global aviation.
“In the past ten years under my Presidency, the Bank has financed over $55 billion in infrastructure,” Dr. 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 Dr. Adesina.
The Ethiopian Airlines Group and the AfDB signed a Letter of Intent on 24 March 2025 to partner for the financing of this flagship project.
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.
It supports several transformative infrastructure projects as a mandated lead arranger, including the Aysha Wind Power Project in Ethiopia and the Tanzania-Burundi-DR Congo Standard Gauge Railway Project.
State-owned transport companies
Over the years, the Bank has successfully executed debt-raise mandates for limited-recourse infrastructure projects as well as state-owned transport companies such as Transnet, Portos e Caminhos de Ferro de Moçambique, and Ghana Airports Company.
The Bishoftu International Airport will serve international passenger and cargo traffic, complementing Bole International Airport, which will retain Ethiopian’s domestic operations.
Ethiopian Airlines hub-and-spoke network, with subregional hubs, is driving connectivity across Africa and with the rest of the world. With the planned airport, the speed, frequency and scale of connections for people, goods, and services is set to increase significantly.
The expansion is also in line with one of the African Development Bank’s High 5 priorities, which is 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.
Ethiopian Airlines: Most successful aviation unit in Africa?
Ethiopian Airlines Group, Africa’s most successful airline, with more than 75 years of operational history, is the seven-time consecutive winner of Skytrax’s ‘Best Airline’ in Africa’ award.
In the fiscal year ending 30 June 2025, the airline reported record revenues of $7.6 billion, reflecting an 8 percent year-on-year growth. It transported 19 million passengers, with 15.1 million on international routes and 3.9 million within the country.
The company has allocated a total of $350 million for livelihood restoration and resettlement of communities that will be affected by the construction.
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