It has been discussed for decades, but now it is within sight. Ethiopian Airlines, Africa’s largest and most profitable carrier, has taken a monumental step towards transforming the continent’s aviation landscape with a £6.2bn deal to finance the Bishoftu International Airport, set to become Africa’s largest upon completion in 2029.
The agreement, formalised with the African Development Bank (AfDB) on 14 March 2025, has the potential to position Ethiopia as a pivotal global aviation hub, addressing the capacity constraints of Addis Ababa’s Bole International Airport and unlocking significant economic and connectivity advantages. As of 7 August 2025, the AfDB has been appointed as the lead arranger to mobilise £6.2bn, with Ethiopian Airlines contributing £1.6bn, representing 20pc of the estimated £7.8bn total project cost.
The lower altitude Bishoftu International Airport, located 40 kilometres southeast of Addis Ababa in the Oromia region, is designed to handle 60m passengers annually by 2040, with the potential to expand to 110m at full capacity, dwarfing Bole’s current 17m passenger limit.
The project, which broke ground in September 2024 under the design expertise of Dubai-based Sidara and Zaha Hadid Architects, features four runways and parking for 270 aircraft, ensuring scalability for Ethiopia’s burgeoning aviation demands. This ambitious infrastructure, first proposed in 2018, responds to the rapid growth of Ethiopian Airlines, which served 17m passengers in the 2023/2024 fiscal year and projects 20m for the current period, solidifying its dominance across Africa, the Middle East, Europe, Asia, and the Americas.
The financing deal, set to be formally signed on 11 August 2025 at Addis Ababa’s Skylight Hotel in the presence of Prime Minister Abiy Ahmed and AfDB President Akinwumi Adesina, underscores Ethiopia’s economic resilience, with an 8.1pc GDP growth rate recorded last year. The AfDB’s commitment, including a £400m anchor investment subject to board approval, reflects its broader £960m portfolio in Ethiopia’s energy, infrastructure, and regional integration sectors. This partnership aligns with Prime Minister Abiy Ahmed’s macroeconomic reforms, aimed at fostering inclusive growth and positioning Ethiopia as a premier tourism and trade destination.
The advantages of the Bishoftu airport extend far beyond aviation. Economically, it is expected to create thousands of jobs in construction, operations, and ancillary services, while spurring urbanisation in Bishoftu, a city known for its natural attractions.
The airport’s strategic location at a lower elevation will reduce jet fuel consumption, enabling longer-range flights and enhancing Ethiopia’s role as a transit hub connecting Africa with global markets. Tourism, a cornerstone of Ethiopia’s diversification strategy, will benefit from improved connectivity, drawing visitors to the country’s rich cultural heritage and landscapes. The project also strengthens regional integration, facilitating trade and mobility across Africa, with Ethiopian Airlines’ extensive 145-destination network set to leverage the hub’s capacity for passenger and cargo transport, aviation training, maintenance, and ground handling.
Challenges remain, including securing the full financing through additional loans and potential public-private partnerships, alongside managing land acquisition and environmental concerns. Ethiopia’s political stability and ongoing reforms will be critical to maintaining investor confidence. Nevertheless, the Bishoftu airport is hailed as an “African flagship project” by AfDB’s Adesina, promising to elevate Ethiopia’s global aviation standing and drive sustainable economic growth. As construction progresses, the project is poised to redefine air travel in Africa, positioning Bishoftu as a gateway to the continent’s future.
