AfDB to Lead $500m Funding for Ethiopian Airlines’ New Mega Airport in Bishoftu

The African Development Bank (AfDB) has formally committed to arranging a $500 million loan to support Ethiopian Airlines Group’s (EAG) ambitious mega airport project in Bishoftu. This follows the signing of a Letter of Intent in March, with both parties now entering into a mandate letter that appoints AfDB as the Initial Mandated Lead Arranger (IMLA) for the project’s financing.

Under the agreement, AfDB will not only provide the $500 million loan but also spearhead the mobilisation of additional funds needed to bring the project to completion. The new airport is expected to be a key aviation hub, complementing the existing Bole International Airport, which will continue handling domestic operations.

EAG CEO, Mesfin Tasew, expressed optimism about the partnership, describing it as a critical move toward creating a world-class pan-African aviation gateway. He emphasized that the development would enhance intra-African trade, regional integration, tourism, and global connectivity.

AfDB President, Akinwumi Adesina, echoed similar sentiments, calling the agreement a milestone for African infrastructure and aviation. The planned airport will also support an aerotropolis that aims to spur regional growth, improve logistics, and create tens of thousands of employment opportunities.