Ethiopia: African Development Bank to invest $500 million in new airport

The African Development Bank (AfDB) on Monday has agreed to contribute 500 million dollars to help develop a new mega airport in Ethiopia.

Ethiopian Airlines Group Chief Commercial Officer Lemma Yadecha and AfDB President Akinwumi Adesina have signed an agreement appointing the AfDB as Mandated Lead Arranger. The bank will lead efforts to raise as much as $8 billion for the budling's construction.

“This world-class airport will serve as a vital gateway to progress and prosperity. More than a transport hub, it is a transformative project that will position Ethiopia among the world’s top 20 aviation hubs by 2035", said Ethopian Finance Minister Ahmed Shide.

The new travel hub is expected to become Africa’s largest airport.

State-owned company Ethiopian Airlines will also contribute 20% of the project’s total funding, which is projected to reach $10 billion.

Ethiopia's existing Addis Ababa Bole International Airport can manage up to 25 million passengers, but it is now operating at near capacity.

Authorities hope the future Bishoftu International Airport will double the country’s tourist inflow, and compete with rivals in Dubai, Casablanca and Johannesburg.

The hub will be located about 40 kilometres away from the capital and should be built in two phases. It should first handle 60 million passengers annually, a number that should rise to 110 million passengers at full capacity.

The construction of the airport is expected to be completed in 2029.