The African Development Bank (AfDB) has committed up to $500 million to help finance Ethiopia’s new airport, which is expected to be the largest in Africa once completed.
State-owned Ethiopian Airlines has signed a design agreement for the four-runway airport, to be built near Bishoftu, about 45 km (28 miles) southeast of Addis Ababa. The airline will cover 20% of the $10 billion project cost, with the remainder to be sourced from creditors.
In a statement on Monday, the AfDB said its $500 million pledge, pending board approval, will serve as an anchor investment for what it called a “transformational regional integration project.” Last week, the bank announced it was leading efforts to raise $7.8 billion for the development.
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The airport is designed to handle 100 million passengers annually once operational. “The appointment of the African Development Bank as lead arranger reflects its catalytic role in advancing strategic infrastructure across the continent and its proven leadership in structuring complex transactions,” the AfDB said in a statement on Thursday.
Scheduled for completion in 2029, the project is a major part of Ethiopian Airlines’ expansion strategy. In 2024, the carrier, already Africa’s largest, placed orders for 124 new aircraft as it works to strengthen its dominance in the continent’s aviation market.
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Image Credit: Reuters
