Ethiopian Airlines secures $500m for African 4-runway mega airport
August 13, 2025
Ethiopian Airlines has taken another step towards building what will be Africa’s largest airport, after securing a $500 million loan from the African Development Bank (AfDB).
The planned greenfield four-runway airport will be located in Bishoftu, around 40 kilometres south of Addis Ababa, and will initially be capable of handling 60 million passengers a year, with scope to expand to 110 million.
Once complete, it will overtake existing African hubs in scale, which Ethiopian Airlines hopes will position the country as a global gateway for the continent.
Plans unveiled for an Ethiopian Airlines mega hub
The first phase will see the construction of two runways and an “airport city”. The launch date for the new hub is slated to be 2029. The facility will accommodate 3.7 million tonnes of cargo and provide parking space for 270 aircraft.
The new $10 billion airport will handle all international passenger and cargo operations, with Addis Ababa’s existing Bole International Airport continuing to serve domestic flights.
The AfDB today signed a financing agreement for the construction of the continent’s largest airport city, which is being built near Bishoftu at a cost of $10 billion. The project will be built on 3,975 ha & is expected to handle 100mil passengers/year. #Ethiopiarising #airlines pic.twitter.com/l7F3FdI7VJ
— Sharla🇪🇹 ሻርላ 莎拉 (@abibsh) August 11, 2025
Bole is said to be rapidly nearing its maximum annual capacity of 22 million passengers.
The agreement with the AfDB, formalised on 11 August, follows a Letter of Intent signed earlier this year.
An additional $500 million is expected to be contributed by the Asian Infrastructure and Investment Bank (AIIB).
‘World-class pan-African gateway’
Ethiopian Airlines Group CEO Mesfin Tasew said, “We are pleased to partner with the African Development Bank in arranging the required financing for the development of this iconic aviation infrastructure.
“The signing of this mandate letter marks a decisive step toward realising a world-class pan-African gateway that will boost intra-African trade, regional integration, tourism, and global connectivity.
“Ethiopian Airlines Group shall continue leading the enhancement of the aviation industry in the continent.”
The airline has said it will provide 20% of the funding, with the rest coming from creditors.
AfDB President Akinwumi Adesina said, “This is a proud moment for African aviation and infrastructure. This mandate letter marks a transformative moment not only for Ethiopian Airlines and Ethiopia, but also to the entire continent, and African Development Bank is proud to support that.”
The project supports both the African Union’s Agenda 2063 and the Single African Air Transport Market initiative.
Ethiopian Airlines, Africa’s largest carrier, is pursuing a long-term growth strategy to 2040. The airline posted record revenues of $7.6 billion in the financial year to June 2025, carrying 19 million passengers.
Africa’s developing airport infrastructure
Alongside plans for a second airport in Addis Ababa, redevelopment is underway in South Africa, where Cape Winelands Airport is upgrading the former Fisantekraal Airfield into a commercial facility intended to ease pressure on Cape Town International.
Modernisation projects are also progressing at Houphouët-Boigny Airport in Abidjan, Blaise Diagne International in Dakar, Entebbe Airport in Uganda, O.R. Tambo International in Johannesburg, Cabinda Airport in Angola, and Menara Airport in Marrakech.
Other developments include Bugesera Airport, located 40 kilometres from Kigali, which is positioned to serve as a regional hub for Central and East Africa; a second Lagos airport at Lekki-Epe, designed to complement Murtala Muhammed International; and the expansion of Tunis-Carthage Airport, where a new terminal is planned to boost capacity by a further eight million passengers annually.
