Ethiopia Opens Bahir Dar Airport Terminal as PM Ranks City Seventh in Revenue Generation

August 7, 2026
By Mintesinot Nigussie

Ethiopia has opened a new international airport terminal in Bahir Dar, expanding aviation capacity outside the capital as Prime Minister Abiy Ahmed (PhD) called for stronger revenue generation from a city that currently ranks seventh among Ethiopian cities by income. The new terminal, inaugurated by Abiy, is the country’s second-largest airport terminal after Addis Ababa Bole International Airport, according to state-owned Fana Media Corporation. The facility is expected to improve air connectivity to Bahir Dar, a major tourism destination located on Lake Tana, while supporting wider investments in transport, tourism and urban infrastructure.

The terminal forms part of a broader development programme in Bahir Dar that includes urban corridor upgrades, road construction, bridges, industrial facilities and a stadium project. The government has positioned these investments as part of efforts to increase economic activity in regional cities and reduce concentration around Addis Ababa. Speaking at the inauguration, Abiy said the airport project demonstrated how infrastructure challenges could be converted into development opportunities. The terminal was developed after the previous facility suffered damage during conflict, according to Fana Media Corporation.

The Prime Minister said Bahir Dar’s corridor development programme was designed to improve the city’s appearance while strengthening its role as a centre of economic activity. “Bahir Dar’s corridor development work will make the city a centre of wealth creation and further reveal its beauty,” Abiy said. The comments come as the government seeks to increase the economic contribution of regional cities. Abiy said Bahir Dar currently ranks seventh among Ethiopian cities in revenue generation, arguing that expanding tourism and attracting more visitors would be central to improving the city’s financial position.

Bahir Dar’s economy is closely linked to tourism, agriculture and trade. The city serves as a gateway to Lake Tana, the source of the Blue Nile, and several historic sites, including monasteries located on the lake’s islands and peninsulas. The government is also developing tourism infrastructure around Lake Tana, including the Gorgora Resort and Felege Ghion projects. Abiy said the projects are being connected through water transport services, including the Tana Neshi vessel, to create a more integrated tourism route.

He said Bahir Dar had historically played a role as a commercial bridge between central Ethiopia and Gondar, with trade routes passing through the area more than a century ago. The airport expansion is part of a wider effort to improve regional connectivity. Beyond aviation, authorities are investing in roads, bridges and urban infrastructure to support movement of people, goods and investment. Abiy also highlighted the construction of a new stadium in Bahir Dar, which he said would host domestic and continental competitions once completed, as well as digital reforms in the Amhara regional judiciary, including virtual court systems. The Prime Minister said sustaining these investments would depend on maintaining peace and stability, warning that insecurity could undermine development efforts.

Source: FSX Business News