By Olatunbosun Obafemi
The African Development Bank (AfDB) will lead financing for Ethiopia’s planned Bishoftu International Airport, a $7.8 billion megaproject set to be the largest airport in Africa. A formal financing deal will be signed on August 11, 2025, between Ethiopian Prime Minister Abiy Ahmed and AfDB President Akinwumi Adesina.
The new airport, championed by Ethiopian Airlines, is designed to handle up to 100 million passengers a year once fully operational. Plans include four parallel runways, aircraft maintenance hangars, cargo and catering centres, an express railway linking Addis Ababa, and parking for 270 aircraft. In its first phase, the airport will have two runways and facilities to accommodate 60 million passengers annually—more than triple the current capacity of Bole International Airport.
Ethiopian Airlines will contribute 20 per cent of the funding from its own resources, while the AfDB will coordinate efforts to secure the remaining financing from lenders. Airline CEO Mesfin Tasew has placed the total cost of the project at around $10 billion.
The development will require the relocation of roughly 2,500 farming households from the construction site. Ethiopian Airlines has set aside 30 billion Birr for land preparation, with 17 billion Birr earmarked for compensation and community development linked to the resettlement. Officials say the relocation should be completed within two months.
For the AfDB, the project is another opportunity to strengthen its role in delivering large-scale infrastructure in Africa. The bank’s current investment portfolio in Ethiopia is valued at $1.2 billion, covering sectors such as energy, agriculture, and infrastructure.
Construction is expected to commence in late 2025. Once completed, Bishoftu International Airport will serve as a major hub for international, regional, and cargo traffic, reinforcing Ethiopia’s position as a leader in African aviation. Officials see the project as a statement of the country’s intent to expand its role as a global gateway for both passengers and freight, while positioning the national carrier to compete more aggressively with international rivals.
