The African Development Bank has signed a financing mandate to lead the mobilisation of up to $8 billion in debt funding for Bishoftu Airport. This project is a key project set to establish the continent’s largest aviation hub.
The agreement was formalised on Monday in Addis Ababa, with AfDB President Dr. Akinwumi Adesina, Finance Minister Ahmed Shide, and Ethiopian Airlines Chief Commercial Officer Lema Yadecha in attendance.
As per the deal that was signed, AfDB has been selected as the Mandated Lead Arranger. AfDB’s task will entail coordinating and securing financing for the 10 billion US dollars project.
Also read: Bishoftu International Airport, Africa’s Biggest Airport, Set to be Constructed in Ethiopia
Bishoftu Airport Project Factsheet
Location: The airport will be built in the Abusera area near Bishoftu
Cost: The total project cost is estimated at approximately $10 billion.
Phased development: The project will be implemented in phases.
- Phase 1: Initial capacity will be 60 million passengers annually.
- Full development: At full capacity, the airport is expected to handle 100-110 million passengers per year, making it the largest airport in Africa.
Funding:
- Ethiopian airlines: The airline will contribute 20% of the total cost. This is approximately $2 billion.
- External funding: The remaining funding is being sourced from development finance institutions and other lenders.
- Lead arranger: The African Development Bank has been appointed as the Mandated Lead Arranger to secure up to $8 billion in debt financing. Also, the AfDB has committed up to $500 million of its own funds, subject to board approval, to anchor the project.
Construction start: Construction is slated to begin in late 2025
Completion: The first phase is expected to be completed and operational by 2029.
Ethiopian Airlines Investment in the Project
Also, Ethiopian Airlines will invest approximately 2 billion US dollars from internal resources. On the other hand, AfDB has committed $500 million as an initial anchor investment. This funding from AfDB is still pending board approval and will lead efforts to mobilize the remaining financing required to complete the airport.
Also read: Ethiopian Airlines and AfDB Partner on $7.8B Africa’s Largest Bishoftu International Airport
Location
The airport project is located near Bishoftu in Abusera. This is about 40 kilometres southeast of Addis Ababa.
Furthermore, the airport is planned to feature four parallel runways. Also, it will contain advanced passenger and cargo terminals, an integrated “Airport City” with hotels, business parks, and leisure facilities.
Construction Start Date
The construction of the airport project will commence in October 2025. The first phase of the airport is expected to cost $6 billion US dollars. This phase will be completed by 2029. Additionally, the first phase will provide capacity for 60 million passengers annually. Eventually, it will be expanded to 110 million. This capacity is considered as more than four times the throughput of the existing Bole International Airport.
This ambitious airport project supports Ethiopia’s Vision 2035 and the African Union’s Agenda 2063. Ethiopia’s vision and AU’s agenda aim to position the country as a regional and global aviation hub. Also, the airport project is expected to generate thousands of jobs and catalyse growth in trade and tourism.
AfDB President Adesina praised Ethiopia’s steady economic growth and government leadership. Additionally, he called the airport a “flagship African project” that is expected to enhance both continental and international connectivity. Ethiopia’s finance minister Shide highlighted AfDB’s ongoing support for infrastructure development and regional integration.
Resettlement
Resettlement efforts for approximately 2,500 farming households are underway for September 2025, with compensation valued at 30 billion Birr.
Also read: Africa’s Biggest Airport, Bishfotu International Airport, to Break Ground in November
