AfDB to Arrange $8 Billion Financing For Bishoftu Aviation Hub

By Mintesinot Nigussie
Published on 08/12/25

The African Development Bank has signed a mandate agreement with Ethiopian Airlines to mobilise up to $8 billion in debt financing for the planned Bishoftu International Airport, a $10 billion project intended to become Africa’s largest aviation hub.

Under the deal, AfDB will act as mandated lead arranger, with Ethiopian Airlines contributing $2 billion from internal resources. The bank has pledged as much as $500 million of its own financing, subject to board approval.

Senior officials including finance minister Ahmed Shide, Ethiopian Airlines chief commercial officer Lema Yadecha and AfDB president Akinwumi Adesina attended the signing, alongside representatives from several African states.

The airport, located about 40km southeast of Addis Ababa, will be built on 4,000 hectares and is designed to handle 60mn passengers a year in its first phase, rising to 110 million when fully completed. Plans include four parallel runways, passenger and cargo terminals, and an “airport city” with hotels, business parks and leisure facilities, linked to the capital by high-speed rail and an expressway.

Construction will begin October 2025, with the first phase, budgeted at 6 billion US dollars, expected to be completed by 2029. This phase will provide capacity for 60 million passengers annually, eventually expanding to 110 million — more than four times the throughput of the existing Bole International Airport.

Ethiopian officials say the project forms part of Vision 2035 and the African Union’s Agenda 2063, aimed at boosting regional integration and positioning the country as a global aviation hub.