In a development hailed as one of Ethiopia’s most significant economic achievements since the Grand Ethiopian Renaissance Dam (GERD), the Ethiopian government has signed a delegation agreement with the African Development Bank (AfDB) to facilitate the financial operations for the new Bishoftu Airport, which will be located 40 kilometers southeast of the capital, Addis Ababa.
Under the agreement, the AfDB will oversee the financial aspects of the project, which will be executed in five phases at a total cost estimated at $10 billion.
The airport is expected to accommodate over 100 million passengers annually, placing it among the largest airports globally. It will feature four runways and state-of-the-art facilities for both passengers and cargo.
A Continental Aviation Hub
In an exclusive statement to Al Jazeera Net, Ethiopian Airlines CEO Mesfin Tasew said the airport will be the largest in Africa upon its completion in 2029. He noted it will include space for 270 aircraft and serve as a continental hub, boosting regional and international connectivity and transforming Addis Ababa into a major air transport center in Africa.
Tasew added that the project will unfold in two key phases: the first will support 60 million passengers annually, and the second will expand capacity to over 100 million. He also mentioned that the airport’s design will reflect Ethiopian identity, becoming a modern and sustainable architectural landmark.
Why Is Ethiopia Investing in a New Airport?
With Bole International Airport nearing its maximum capacity of approximately 25 million passengers annually, the Bishoftu Airport project is central to Ethiopia’s 2035 strategy. The plan aims to double passenger and cargo volumes and solidify Ethiopian Airlines` position among the world’s top 20 airlines.
Murid Fakir Yohannes, CEO of Pragma Capital and an investment and finance advisor, told Al Jazeera Net, “The $10 billion investment should not be viewed only through the lens of the Ethiopian economy, but through the African economy as a whole. Ethiopian Airlines is the largest connector between Africa and the rest of the world.”
Fakir Yohannes pointed out that aviation contributes around 67% of Ethiopia’s GDP, which stands at approximately $117 billion. Ethiopian Airlines generated $8 billion in revenue in the last fiscal year, highlighting the investment’s strategic value.
Fleet Expansion to Match Ambitions
The project will span 3,975 hectares in the city of Bishoftu and is expected to meet future tourism and investment demands, especially as Bole Airport can no longer keep up with the rapid growth in passenger traffic.
Ethiopia currently operates a fleet of around 160 aircraft and aims to double that number to 275 by 2030 as part of a strategic plan to accommodate growing demand in air transport and cargo logistics.
Strategic and Economic Objectives
Through the Bishoftu Airport project, Ethiopia seeks to achieve a range of strategic and economic goals that reflect its ambitions to become a pivotal aviation hub on the African continent.
The initiative is part of a broader expansion plan for Ethiopian Airlines—one of Africa’s most successful carriers—and aims to increase its capacity to handle the growing demand for both air travel and cargo transport.
The project also aims to attract foreign investment and create thousands of direct and indirect jobs, thereby stimulating the local economy.
By offering modern and high-quality services for passengers and freight, Ethiopia hopes to support continental integration and make the African aviation sector more competitive in the global market—positioning it as a key driver of development and inter-African connectivity.
Growth and Profitability Indicators
According to Ethiopian Airlines data, the company transported approximately 15 million international passengers and 4 million domestic travelers between July 2024 and July 2025—an 11% increase from the previous year.
Revenue also rose to $7.6 billion, marking an 8% year-on-year increase, reinforcing its status as the busiest airline in Africa.
Despite economic challenges facing the country, such as high inflation and the devaluation of the local currency, Fakir Yohannes expressed optimism. He noted that Ethiopian Airlines functions as a “state within a state,” due to its financial scale and logistical influence. The airline also maintains a separate credit rating from the Ethiopian government, giving it strong capacity to mobilize resources and implement large-scale projects like Bishoftu.
The Bishoftu Dream
More than 120 million Ethiopians hope the project will directly and indirectly employ thousands of workers and turn the airport into a major African transit hub, attracting tourists and business travelers and offering modern facilities that present a progressive image of the country.
The workforce of Ethiopian Airlines is expected to more than double from its current 17,000 employees. The new airport will also be integrated into modern road and rail networks, enhancing passenger and cargo movement and driving development across multiple sectors.