Ethiopian Airlines Group and the African Development Bank (AfDB) have announced a significant partnership to construct a new airport in Ethiopia, projected to be the largest in Africa, with an estimated cost of $7.8 billion. The parties formalized their collaboration by signing a letter of intent on Friday, as reported by the finance ministry in a statement released on Saturday. However, the specific financial contribution from the AfDB for this ambitious project has not been disclosed.
This new international airport expansion initiative, led by the state-owned Ethiopian Airlines Group, aims to meet the rapidly increasing demand for both international and domestic passenger and cargo services. With the current growth trajectory of passenger traffic, Bole International Airport in Addis Ababa, which serves as the national carrier’s hub, is expected to reach its maximum capacity in the near future.
The proposed mega airport is designed to significantly enhance the annual passenger capacity from the current 17 million to over 60 million by the year 2040. This development is poised to strengthen Ethiopian Airlines’ position as Africa’s premier aviation group, ensuring that the airline maintains its competitive advantage in various sectors, including passenger and cargo transport, aviation training, flight catering, maintenance, and ground handling services. Furthermore, it aligns with Ethiopia’s goal of becoming a prominent tourism destination, as highlighted in the finance ministry’s statement.
The new international hub is not only anticipated to spur economic growth within Ethiopia but also to improve Africa’s global air connectivity and integration, thereby reinforcing the continent’s status as an aviation hub. During the signing ceremony, Finance Minister Ahmed expressed appreciation for the AfDB’s extensive support for Ethiopia’s development, noting that the bank currently has a portfolio of over $1.2 billion invested in key sectors. He also acknowledged President Adesina for his leadership and contributions to Ethiopia’s development over the past decade.
In addition to the airport project, the Minister requested the AfDB’s assistance with Ethiopia’s macroeconomic reform agenda and other transformational projects related to regional integration and renewable energy. AfDB Group President Adesina referred to the airport development initiative as a flagship project for Africa, reaffirming the bank’s commitment to supporting this endeavor. He commended Ethiopia’s impressive 8.1% GDP growth recorded in the previous year and praised the rapid transformation of Addis Ababa under the leadership of Prime Minister Abiy Ahmed. Both parties agreed to strengthen their existing partnership through strategic and innovative collaborations that will benefit Ethiopia and the broader region, as stated by the finance ministry.
