AfDB Appointed Lead Arranger for Ethiopian Airlines’ Bishoftu Int’l Airport Financing

Addis Ababa, August 11, 2025 (ENA) -- The African Development Bank (AfDB) and Ethiopian Airlines Group today signed a letter appointing the Bank as the Mandated Lead Arranger for the financing of the Bishoftu International Airport — which, upon completion, will be Africa’s largest airport.

The mandate letter was signed by African Development Bank President Dr. Akinwumi A. Adesina and Ethiopian Airlines Chief Commercial Officer Lema Yadecha.

Under the agreement, the AfDB will lead resource mobilisation efforts to finance the multi-billion-dollar infrastructure, reflecting its catalytic role in advancing strategic infrastructure projects across Africa and its proven leadership in structuring complex transactions.

The Bank’s appointment underscores its unique capacity to align public and private sector financing in support of Africa’s development priorities.

Located in Abusera, 40 km south of Addis Ababa, the proposed Bishoftu International Airport will have an initial capacity to handle 60 million passengers annually, expanding to 110 million passengers at full capacity. Currently, Africa’s busiest airports serve between 18 and 29 million passengers per year.

The new airport project emphasizes network expansion, infrastructure development, and human capital investment to address capacity constraints at Ethiopia’s current Bole International Airport and enhance global competitiveness.

Construction of the airport’s first phase will begin in late 2025. Once operational, Bishoftu will serve as one of Africa’s prime aviation hubs for international, regional, and cargo traffic, complementing Bole International Airport in Addis Ababa, which will focus on domestic operations.

Speaking at the signing, Ethiopian Airlines Chief Commercial Officer Lema Yadecha highlighted the project’s urgency and scale.

He said by the fiscal year ending June 30, 2025, 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.

The site at Abusera, 40 km south of Addis Ababa, was selected after comprehensive studies and a master plan finalized in 2022.

According to Lema, the airport will open in phases starting November 2029, featuring two parallel runways and terminal facilities covering 775,000 square meters for 60 million passengers annually. At full development, it will have four parallel runways and 1.5 million square meters of facilities for 110 million passengers yearly.

Cargo handling capacity will begin at 2.1 million tons, growing to 3.73 million tons at full development. The project includes an Airport City with hotels, business parks, and leisure facilities to drive local economic growth.”

Finance Minister of Ethiopia, Ahmed Shide praised the project’s significance: “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.”

African Development Bank President Dr. Akinwumi A. Adesina lauded Ethiopian Airlines as a critical driver of regional integration and economic growth. “Ethiopian Airlines today is indispensable for connecting capitals, peoples, and markets across Africa.”

During the COVID-19 pandemic, while many airlines stopped flying, Ethiopian Airlines innovated by converting passenger cars into cargo carriers, transporting vaccines, medicines, and equipment worldwide, Adesina noted.

“I was particularly impressed by Ethiopian Airlines’ achievements, including winning the Skytrax Best Airline in Africa Award for seven consecutive years — a remarkable feat. I commend CEO Mr. Tasew and the entire leadership and staff for their outstanding performance, which has made Africa proud.”