(Posted 12th August 2025)
Following the signing of the Letter of Intent (LoI) on March 24th this year,
Ethiopian Airlines Group (EAG) and the African Development Bank
(AfDB) signed a landmark mandate letter appointing the Bank as Initial Mandated Lead
Arranger (IMLA) for the financing of Ethiopian Airlines’ mega airport, a transformative
aviation hub poised to redefine air connectivity across Africa.
Under this Mandate Letter, AfDB will provide a loan of USD 500 million and lead the
mobilization of the remaining amount, for financing the development of the new airport
in Bishoftu, the continent’s most ambitious airport project to date. Located 40 kilometers
south of Addis Ababa in Abusera, the new greenfield airport will have an initial capacity
of 60 million passengers annually, with future expansion to 110 million, making it the
largest airport in Africa and one of the top global hubs.
“This is a proud moment for African aviation and infrastructure.” said Dr. Akinwumi Adesina, President of the African Development Bank. “The signature of this mandate letter marks a decisive step toward realizing a world-class pan-African gateway that will boost intra African trade, regional integration, tourism, and global connectivity.”
The Bank’s appointment as IMLA reflects its catalytic role in advancing strategic
infrastructure that aligns with the African Union’s Agenda 2063 and the African Single
Air Transport Market (SAATM). The project is not only a response to the growing air
traffic demands in Africa, but also a symbol of African-led development excellence. It
reinforces the Bank’s leadership in structuring complex infrastructure transactions and
its unique capacity to align public and private capital with Africa’s long-term
development priorities.
The mega airport will serve as the future hub for all international passenger and cargo
traffic, complementing Bole International Airport, which will retain its domestic
operations. The airport will anchor an aerotropolis designed to stimulate regional
development, enhance logistics capacity, and generate tens of thousands of jobs.
