By Kennedy Nalyanya
ADDIS ABABA — The African Development Bank (AfDB) has committed up to $500 million in funding for the development of a new international airport in Ethiopia, a project that is set to become Africa's largest upon completion. The bank's pledge is a key part of its broader role as the lead arranger for the ambitious project, which carries an estimated total cost of $10 billion.
The agreement, formalized in a recent ceremony in Addis Ababa, appoints the AfDB as the Initial Mandated Lead Arranger (IMLA). In this capacity, the bank will spearhead efforts to mobilize up to $8 billion in debt financing from various public and private sources. Ethiopian Airlines, the country's state-owned flag carrier and the largest airline in Africa, will contribute 20% of the total project cost.
The new facility, to be known as Bishoftu International Airport, will be located approximately 45 kilometers southeast of the capital, Addis Ababa. It is designed to alleviate the significant capacity constraints at the current hub, Addis Ababa Bole International Airport, which is nearing its maximum annual capacity of 25 million passengers.
According to officials, the Bishoftu airport will be built in phases and is expected to have an initial capacity of 60 million passengers annually, with a potential expansion to 110 million passengers per year at full capacity. This scale would position it as one of the world's leading aviation hubs and a major gateway for air travel to and from Africa.
The project is a central component of Ethiopian Airlines' "Vision 2040" growth strategy, which aims to enhance the airline's global competitiveness and expand its network. The new airport is expected to feature four runways and advanced cargo facilities, serving as a hub for all international and cargo traffic while Bole International Airport shifts its focus to domestic operations.
AfDB President Dr. Akinwumi Adesina hailed the project as a "transformational regional integration project" that aligns with the African Union's Agenda 2063, which promotes continental connectivity and a single African air transport market. Construction is scheduled to begin later this year, with a target completion date of 2029. The project is anticipated to create thousands of jobs, boost tourism, and strengthen Ethiopia's position as a key player in the global aviation industry.
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