Mekelle፡Telaviv, Nairobi, Pretoria, London, (Tigray Herald).
Ethiopia, AfDB Ink $10 Billion Deal to Build Africa’s Largest Airport City Near Bishoftu
Ethiopian Airlines Group (EAG) and the African Development Bank (AfDB) have signed a landmark $10 billion financing agreement to construct Africa’s largest airport city, a state-of-the-art aviation hub in Bishoftu, Ethiopia.
The agreement, formalized through a Mandate Letter, appoints AfDB as the Initial Mandated Lead Arranger (IMLA) for the project. Under the deal, the Bank will provide $500 million in direct financing and mobilize the remaining funds needed for the massive greenfield development.
The new airport, to be built in Abusera 40 kilometers south of Addis Ababa will initially handle 60 million passengers annually, with future capacity to reach 110 million, placing it among the top global air hubs. The facility will serve as the main gateway for international passenger and cargo operations, while Bole International Airport will retain domestic services.
EAG CEO Mesfin Tasew hailed the partnership as a “decisive step toward realizing a world-class Pan-African gateway that will boost trade, integration, tourism, and connectivity.” AfDB President Dr. Akinwumi Adesina called the project “a proud moment for African aviation and infrastructure,” aligning with the African Union’s Agenda 2063 and the Single African Air Transport Market.
The airport will anchor an aerotropolis expected to create tens of thousands of jobs, enhance Ethiopia’s logistics capabilities, and stimulate regional economic growth. It also forms part of Ethiopian Airlines’ long-term “Vision 2040” strategy to expand its network, upgrade infrastructure, and strengthen human capital.
In the fiscal year ending June 30, 2025, Ethiopian Airlines reported a record $7.6 billion in revenue an 8% increase year-on-year carrying 19 million passengers, including 15.1 million on international routes.
With operations to more than 160 destinations worldwide, Ethiopian Airlines remains Africa’s largest and most awarded carrier, aiming to become one of the world’s top 20 aviation groups in the coming decade.
