The African Development Bank (AfDB) will lead efforts to raise $7.8 billion towards building a new airport in Ethiopia that is set to become Africa’s largest when completed in 2029.
The new facility, located near Bishoftu town about 45 kilometers southeast of Addis Ababa, will be designed to handle 100 million passengers annually, a huge increase from the current airport's capacity.
In a statement on Friday the bank said, “The appointment of the African Development Bank as lead arranger reflects its catalytic role in advancing strategic infrastructure across the continent and its proven leadership in structuring complex transactions.”
This highlights AfDB’s critical role in mobilizing funds for major projects in Africa.
Ethiopian Airlines, the state-owned carrier and Africa’s biggest airline, has signed an agreement for the airport’s design. The four-runway airport aims to address the growing demand for air travel, which has outpaced the current capacity of Bole Addis Ababa International Airport.
At a recent presentation of Ethiopian Airlines’ financial results, Chief Executive Officer Mesfin Tasew revealed that the total cost of the airport project will be $10 billion.
Ethiopian Airlines plans to contribute 20 percent of this funding, with the remaining amount expected from creditors.
Last year, Mesfin noted that the existing Bole airport was nearing its limit of serving 25 million passengers annually, underscoring the urgent need for the new facility to support the region’s expanding air traffic.
The African Development Bank also announced that a formal signing ceremony to seal the funding agreement will be held on Monday in Addis Ababa, with AfDB’s head and Ethiopia’s Prime Minister Abiy Ahmed in attendance.
