African Development Bank backs Ethiopia’s cargo super-airport

Ethiopia has launched its $10 billion Bishoftu International Airport project, with the African Development Bank as the initial mandated lead arranger, global coordinator, and book runner to mobilise nearly $8 billion of the required financing. The new airport, located 40 kilometres south of Addis Ababa, will have the capacity to handle 3.73 million tonnes of cargo annually, alongside large-scale passenger operations.

The Bank plans to provide $500 million in financing, subject to Board approval. The mandate letter was signed by Ethiopian Airlines Group Chief Commercial Officer Lemma Yadecha and African Development Bank Group President Dr. Akinwumi Adesina, in the presence of Ethiopia’s Minister of Finance Ahmed Shide.

Adesina said the Bank is proud to support Ethiopia in expanding the operational and fleet capacity of Ethiopian Airlines, praising the airline’s globally rated cargo facilities. He described the partnership as a union between Africa’s largest airline and the continent’s biggest infrastructure financier to deliver a “game changer” for African and global aviation.

Ethiopian Airlines Group CEO Mesfin Tasew, represented by Yadecha, said the project will boost intra-African trade, regional integration, tourism, and global connectivity. The new hub will complement Bole International Airport, which will retain domestic operations, and will enhance the speed, frequency, and scale of cargo and passenger services across Africa and beyond.

Groundworks are expected to begin in late 2025, with the first phase scheduled for completion by November 2029. The multi-billion-dollar development will also include an airport city with shopping malls, hotels, recreation areas, and direct rail and expressway links to Addis Ababa.

The African Development Bank has a history of mobilising financing for major African transport projects, including the Aysha Wind Power Project in Ethiopia and the Tanzania-Burundi-DR Congo Standard Gauge Railway. In 2016, it provided a $160 million loan to modernise and expand Ethiopian Airlines’ fleet.

Ethiopian Airlines, with more than 75 years of operational history, reported record revenues of $7.6 billion for the year ending June 2025. The company has also set aside $350 million for livelihood restoration and resettlement of communities affected by the Bishoftu airport construction.