Ethiopian airlines, AfDB partner to build Africa’s new air cargo hub

Ethiopian Airlines and the African Development Bank have signed a $10 billion financing partnership to build the new Bishoftu International Airport, which will handle up to 3.73 million tonnes of cargo annually alongside massive passenger capacity. The Bank will act as the initial mandated lead arranger, global coordinator and book runner, aiming to mobilise nearly $8 billion of the required funding. It also plans to provide $500 million in financing, subject to Board approval.

The mandate letter was signed by Ethiopian Airlines Group Chief Commercial Officer Lemma Yadecha and African Development Bank President Dr. Akinwumi Adesina, in the presence of Ethiopia’s Minister of Finance Ahmed Shide and other dignitaries from across Africa.

Located 40 kilometres south of Addis Ababa, the greenfield airport will start with a capacity for 60 million passengers, eventually expanding to 110 million, and will complement Bole International Airport’s domestic operations. Ethiopian Airlines’ hub-and-spoke network will benefit from faster, more frequent and larger-scale connections for people, goods and services across Africa and the globe.

Ethiopian Airlines Group CEO Mesfin Tasew, represented by Yadecha, called the agreement “a decisive step” towards creating a world-class pan-African gateway that will strengthen intra-African trade, regional integration, tourism and global connectivity. Adesina described the project as a “game changer” for African and global aviation, praising Ethiopian Airlines’ record of connecting markets with its highly rated cargo facilities.

Groundworks are set to begin in late 2025, with Phase I scheduled for completion by November 2029. The project will also include an airport city with shopping malls, hotels, recreation spaces, and direct rail and expressway links to Addis Ababa. Ethiopian Airlines has allocated $350 million for livelihood restoration and resettlement of affected communities.

The Bishoftu development aligns with the African Development Bank’s priority to integrate Africa by building cross-border links and enabling greater trade and travel. The Bank has previously financed transformative transport infrastructure across the continent, including support for Ethiopian Airlines’ fleet expansion in 2016.