The ambitious $7.8 billion project aims to dramatically scale up Ethiopia’s aviation capacity, to handle 60 million passengers annually by 2040, up from the current 17 million.

Mr. Mesfin Tasew, CEO of Ethiopian Airlines Group, and Mrs. Nnenna Nwabufo, Vice President for Regional Development, Integration, and Strategy at AfDB, signed the memorandum of understanding (MoU).

The new airport will be constructed in Abusera, near Bishoftu, in Ethiopia’s Oromia region.

Ethiopia’s Finance Minister Ahmed Shide welcomed the deal, highlighting the AfDB’s broader financial support, which includes $1.2 billion in investments toward key development initiatives.

He also urged the Bank to support Ethiopia’s ongoing macroeconomic reform program and transformative projects in renewable energy and regional integration.

AfDB President Dr. Akinwumi Adesina praised Ethiopia’s robust economic performance, citing 8.1% GDP growth over the past year and Addis Ababa’s rapid development under Prime Minister Abiy Ahmed (PhD).

He called the Bishoftu International Airport a flagship infrastructure project for Africa, reiterating the Bank’s full commitment to supporting its successful delivery.

Both Ethiopian Airlines and the AfDB emphasized their intent to deepen their strategic collaboration—advancing large-scale infrastructure projects that strengthen Ethiopia’s position as a regional aviation hub and accelerate economic integration across the continent.