The African Development Bank (AfDB) has announced it will serve as the lead arranger for raising $7.8 billion to fund a new international airport in Ethiopia. The project, once completed in 2029, will become the largest airport on the African continent, with the capacity to handle 100 million passengers annually.

AfDB Takes the Lead in Major Infrastructure Project

In a statement released Thursday, the AfDB confirmed its central role in facilitating the financing of the massive infrastructure undertaking. The bank cited its “catalytic role in advancing strategic infrastructure” and its track record in managing complex transactions as key reasons for its appointment.

Four-Runway Airport to Be Built Near Bishoftu

The airport will be constructed near Bishoftu, approximately 45 kilometers southeast of Addis Ababa, Ethiopia’s capital. The facility will feature four runways, making it a major international aviation hub and a strategic asset for Ethiopia and the continent.

The project is led by Ethiopian Airlines, which signed a design agreement for the airport. The airline is also a major financial contributor.

$10 Billion Project with Airline Funding 20%

According to Ethiopian Airlines CEO Mesfin Tasew, the airport’s total cost is projected at $10 billion. The airline will contribute 20% of the funding, with the remaining amount expected from external creditors. The AfDB will coordinate this funding effort, engaging both private and public sector lenders.

Bole Airport Nears Full Capacity

Tasew also noted that Bole Addis Ababa International Airport, the airline’s current hub, is nearing its capacity of 25 million passengers per year, highlighting the urgency for expansion. The new facility aims to secure Ethiopia’s long-term position as a key aviation gateway for Africa and beyond.

Signing Ceremony Scheduled in Addis Ababa

A formal signing ceremony is scheduled for Monday in Addis Ababa, with the participation of the African Development Bank President and Prime Minister Abiy Ahmed.