Ethiopian Airlines Group and the African Development Bank have signed a landmark mandate letter, appointing AfDB as the Initial Mandated Lead Arranger for financing the development of Africa’s largest airport in Bishoftu, Ethiopia.
The $7.8 billion project aims to redefine air connectivity across the continent, with the new airport expected to handle 60 million passengers annually, expandable to 110 million.
Located 40 kilometers south of Addis Ababa, the mega airport will serve as a future hub for international passenger and cargo traffic, complementing Bole International Airport’s domestic operations. It will anchor an aerotropolis designed to stimulate regional development, enhance logistics capacity, and generate tens of thousands of jobs.
According to Ethiopian Airlines Group CEO, Mesfin Tasew, “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”.
AfDB President, Dr. Akinwumi Adesina, echoed similar sentiments, stating, “this is a proud moment for African aviation and infrastructure. The signature of this mandate letter marks a decisive step toward realising a world-class pan-African gateway”.
Under the mandate letter, AfDB will provide a $500 million loan and lead the mobilisation of the remaining amount for the project. This partnership reflects the Bank’s catalytic role in advancing strategic infrastructure aligned with the African Union’s Agenda 2063 and the African Single Air Transport Market.
Ethiopian Airlines Group has been expanding its operations, recently unveiling a global standard airport in Wollo Kombolcha and inaugurating a major MRO expansion with new facilities.
The airline reported record revenues of $7.6 billion in the last fiscal year, reflecting an 8 per cent year-on-year growth.