Ethiopian Airlines Group (EAG) has moved a step closer to realising its ambitious new airport in Bishoftu with the signing of a mandate letter appointing the African Development Bank (AfDB) as the Initial Mandated Lead Arranger (IMLA) for the project’s financing.
The agreement follows a Letter of Intent (LoI) signed in March between the two parties, setting the groundwork for a large-scale funding plan. Under the arrangement, AfDB will provide a $500 million loan and spearhead the mobilisation of additional funds to complete the financing package.
Strategic Gateway for Africa
Ethiopian Airlines Group CEO, Mesfin Tasew, described the project as a landmark development for African aviation:
“We are pleased to partner with the African Development Bank in arranging the required financing for the development of this iconic aviation infrastructure. The signing of this mandate letter marks a decisive step toward realising a world-class pan-African gateway that will boost intra-African trade, regional integration, tourism, and global connectivity. Ethiopian Airlines Group shall continue leading the enhancement of the aviation industry in the continent.”
AfDB President, Dr. Akinwumi Adesina, echoed the sentiment, calling it “a proud moment for African aviation and infrastructure”, noting that the project would serve as a catalyst for economic integration and connectivity across the continent.
Complementing Bole International Airport
The new Bishoftu facility is designed to become the primary hub for international passenger and cargo operations, while Bole International Airport in Addis Ababa will continue to handle domestic flights.
Beyond its aviation role, the airport will anchor an aerotropolis—a commercial and industrial urban area built around the airport—to stimulate regional development, expand logistics capacity, and create tens of thousands of jobs.
Driving Regional and Global Connectivity
When completed, the mega airport is expected to significantly enhance Ethiopia’s role as a global air transport hub, providing state-of-the-art facilities for both passenger and cargo operations. The project also aligns with Africa’s broader goal of increasing intra-African trade and positioning the continent as a competitive player in global logistics.