The African Development Bank Group (AfDB) and Ethiopia are expected to sign a historic agreement on Monday, August 11, 2025.
The deal will focus on the AfDB’s crucial role in raising significant funds for Ethiopia’s ambitious new international airport in Bishoftu, which is 40 kilometres southeast of Addis Ababa.
Prime Minister Abiy Ahmed and AfDB President Akinwumi Adesina are anticipated to attend the ceremony, which marks a significant milestone in the realisation of Africa’s largest airport, which can handle up to 110 million passengers when fully operational.
This will support Ethiopia’s vision for unmatched aviation leadership in Africa and further accelerate Ethiopian Airlines’ strong growth trajectory.
Officially, the project’s first phase of construction is scheduled to start by the end of 2025.
Ethiopia’s airport project to gulp $10 billion
This enormous infrastructure project is expected to cost $10 billion in total. Ethiopian Airlines pledges to use its own funds to finance 20 per cent of this amount, with the remaining $7.8 billion coming from outside creditors.
The AfDB’s official designation as the required lead arranger for this sizable amount is a strong testament to the project’s feasibility and Ethiopia’s strategic significance as a hub for continental aviation.
This crucial financial leadership directly makes the large-scale construction possible, ensuring that the project moves forward quickly and effectively and boosting foreign investors’ faith in Ethiopia’s long-term economic prospects.
Benefits of the project for Ethiopia
Based on this airport expansion, Ethiopian Airlines will have the essential infrastructure to support its growing fleet and global network.
The airline, which is currently the biggest and most successful in Africa, will make use of this new hub to improve connectivity throughout the continent and support more travel and trade.
This project will also generate significant foreign direct investment and create many job opportunities, supporting widespread economic growth in several industries.
Therefore, the AfDB’s support goes beyond simply providing funding for an airport; it actively promotes Ethiopia’s crucial role in determining the direction of aviation in Africa.
Ethiopian Airlines reports $7.6 billion in revenue
In other news, Ethiopian Airlines reported a strong $7.6 billion in revenue for the fiscal year 2024–2025, reaffirming its dominance in the African skies.
This figure is impressive, but only provides a portion of the picture. This financial success is ultimately fueled by the airline’s strategic focus on modernising its fleet, growing its passenger base, and launching new destinations.
Thirteen new aircraft were delivered to the airline during this period, significantly strengthening its fleet in the face of a worldwide supply shortage.
This expansion increased significantly from the previous year’s 17 million passengers to 19 million. This expansion shows that, despite operational challenges facing the entire industry, the airline can meet rising demand.
Interestingly, the airline’s network keeps expanding unabated. Ethiopian Airlines now links more cities than ever before with the addition of six new international destinations. This expansion solidifies its position as the continent’s leading hub by connecting Africa with the rest of the world.
Although its domestic operations suffered, the expansion of its international routes and the rise in passenger volume demonstrate a well-defined and effective strategy of utilising global connectivity to boost overall profitability.