The facility is expected to become Africa’s largest airport once finished, with a completion date set for 2029.

This project, costing an estimated $10 billion, will be built near Bishoftu, around 45 kilometers southeast of Addis Ababa.

Ethiopian Airlines, the state-owned carrier, has already entered into a design agreement for the airport. The airline will cover 20% of the total cost, while the remaining funds will be raised from various lenders.

The AfDB described its contribution as an anchor investment for a “transformational regional integration project.” The bank has also taken the lead in mobilizing $7.8 billion in funding for the initiative.

Once complete, the airport is expected to handle up to 100 million passengers per year.

In a related development, Ethiopian Airlines recently reported an 8% increase in revenue for its 2024/25 financial year, achieving $7.6 billion in earnings.

Passenger numbers rose 11% to 19 million, and the airline added new routes and aircraft to its growing fleet.

CEO Mesfin Tasew Bekele also reaffirmed the airline’s long-term plans for the mega-airport near Bishoftu, designed to accommodate 100 million passengers and park 270 aircraft by 2029.

Report Summary:

• Project cost: $10 billion

• AfDB pledge: $500 million (subject to board approval)

• Location: Near Bishoftu, about 45 km southeast of Addis Ababa

• Ethiopian Airlines contribution: 20% of total cost

• Funding strategy: Remainder from creditors; AfDB leading a $7.8 billion fundraising effort

• Capacity: 100 million passengers annually

• Target completion: 2029