AfDB commits $500m to Ethiopia’s $10 billion airport project, set to be Africa’s largest

The African Development Bank (AfDB) will provide up to $500 million to help finance a new airport in Ethiopia, slated to become Africa’s largest upon completion.

State-owned Ethiopian Airlines has signed a design agreement for the four-runway facility, to be built near Bishoftu, about 45 km (28 miles) southeast of the capital, Addis Ababa.

The airline will contribute 20% of the $10 billion project’s cost, with the remainder to be sourced from creditors.

In a statement on Monday, the AfDB said its $500 million pledge, pending board approval, will serve as an anchor investment for what it described as a “transformational regional integration project.”

The bank, which last week announced it was leading efforts to raise $7.8 billion for the airport, said the facility will have the capacity to handle 100 million passengers annually once operational.

“The appointment of the African Development Bank as lead arranger reflects its catalytic role in advancing strategic infrastructure across the continent and its proven leadership in structuring complex transactions,” the bank said in a statement on Thursday.

Scheduled for completion in 2029, the facility will have the capacity to accommodate up to 100 million passengers annually.

The project is part of the airline’s broader expansion strategy. Last year, Ethiopian Airlines, already Africa’s largest and most prominent carrier, placed orders for 124 new aircraft, underscoring its push to consolidate dominance in the continent’s aviation market.