Ethiopia is poised to host Africa’s largest airport as a China-based financial institution has pledged $500 million toward the $12.5 billion Bishoftu International Airport, according to Ethiopian Airlines Group CEO Mesfin Tasew Bekele.
The announcement came during the Africa Investment Forum in Rabat, Morocco, where Tasew confirmed that the commitment represents a significant step in securing funding for a project that has already attracted interest from lenders across Europe, the United States, the Middle East, and India.
The airport, spearheaded by Africa’s largest airline, is projected to handle up to 110 million passengers annually, positioning it as a transformative hub for trade, tourism, and regional connectivity.
Ethiopian Airlines plans to fund approximately 20 percent of the development through its own equity, highlighting the airline’s confidence in the project despite Ethiopia’s macroeconomic challenges, including foreign-exchange shortages.
Tasew emphasized that the airline generates nearly 90 percent of its revenue in foreign currencies, mitigating domestic currency fluctuations as a financial risk.
The $12.5 billion investment encompasses land acquisition, resettlement costs, and construction. Private-sector financing is expected to fill an estimated $8 billion gap, and ongoing engagement with global financial institutions indicates strong interest from a diverse group of investors. Tasew described the response from potential lenders as “very, very positive,” reflecting confidence in the project’s strategic and economic potential.
For Ethiopia, the Bishoftu airport represents a bold infrastructural and economic vision. Beyond its scale, the project signals a commitment to positioning the country as a continental transport and logistics hub.
Ethiopian Airlines has built a track record of resilience, sustaining profitability through the COVID-19 pandemic and regional conflicts that disrupted air travel across East Africa.
The airport project further consolidates this reputation, offering a platform to support national economic growth while connecting Africa more effectively to global markets.
Read also: AU unveils $30bn Green Aviation Plan to transform Africa’s airspace
The involvement of a Chinese institution also underscores intensifying international competition for influence in African infrastructure development. European and American investors are actively pursuing participation, reflecting Ethiopia’s strategic significance in aviation, trade corridors, and industrial logistics.
The airport’s development aligns with broader continental objectives to strengthen regional integration and support sustainable economic expansion, particularly in aviation-dependent sectors such as tourism, manufacturing, and freight services.
While Ethiopia advances toward this milestone, the project raises questions about sustainable implementation. Large-scale airport projects require careful management of environmental impacts, including land use, carbon emissions, and water consumption.
Ethiopian Airlines has partnered with KPMG and Dar Al-Handasah Consultants to ensure that planning and financing structures account for these factors while aligning with long-term national development goals.
The Bishoftu International Airport is a strategic statement about Africa’s capacity to deliver mega-projects that integrate private investment, international financing, and domestic ambition.
With international backing growing and the airline committed to self-financing a portion of the construction, Ethiopia is positioning itself at the forefront of African aviation, regional connectivity, and economic development.
Source: Ecofin Agency
Engage with us on LinkedIn: Africa Sustainability Matters
