The African Development Bank Group (AfDB) has been appointed as the Mandated Lead Arranger, Global Coordinator, and Book Runner to mobilise $8 billion in debt financing for the construction of Ethiopia’s new Bishoftu International Airport.
Dr. Akinwumi A. Adesina, President and Chairman of the AfDB, announced the bank’s pivotal role during a signing ceremony in Addis Ababa, which he described as a “testament to the power of vision” for the continent.
The new airport is set to be a game-changer for air transport in Africa and beyond. Phase one of the project will have an annual capacity of 60 million passengers, which is slated to expand to 110 million passengers in phase two.
This expansion is driven by the rapid growth of Ethiopian Airlines, which, according to Adesina, saw its passenger numbers increase by 24% to 19 million in 2024.
The current Bole International Airport, with a capacity of 25 million passengers, is no longer sufficient to meet the airline’s ambitions.
The Bishoftu airport project, with a total cost of $10 billion, will also feature a 3.7 million-ton cargo capacity and parking for 270 aircraft.
Adesina noted that the new facility would enable Ethiopian Airlines to reduce its fuel consumption by 15%, a significant efficiency gain for the profitable company, which recorded $7.2 billion in revenues in 2024.
The AfDB’s own direct debt contribution will be up to $500 million.
The AfDB’s partnership with Ethiopia is not new. Adesina recalled providing a $160 million corporate loan to Ethiopian Airlines in 2016, which helped the airline expand its fleet.
He commended Ethiopian Airlines for its performance, noting its 75-year history and its consistent achievement of the Skytrax ‘Best Airline in Africa’ award for seven consecutive years.
In his final official visit to Ethiopia as AfDB president, Adesina commended the government, particularly the Minister of Finance, Ahmed Shide, for their strong leadership and commitment to the project.
He also highlighted the government’s swift and transparent relocation and financial settlement of all 2,800 households affected by the project.
