Ethiopian Airlines and the African Development Bank (AfDB) have signed a letter of intent (LOI) to finance the construction of a $7.8 billion airport in Abusera, approximately 40 kilometers south of Addis Ababa.
The agreement marks a significant step in Ethiopian Airlines’ bid to maintain its position as Africa’s largest carrier and strengthen Addis Ababa’s status as a key aviation hub.
The Abusera International Airport is expected to alleviate congestion at Bole International Airport, which is approaching its annual capacity of 25 million passengers. The new facility, designed by Dubai-based Sidara, will feature four runways, a 100 million passenger capacity, and parking for 270 aircraft—positioning it among the largest airports in Africa.
The letter of intent was signed on March 14 in Abidjan by Mesfin Tasew Bekele, CEO of Ethiopian Airlines, and Nnenna Nwabufo, AfDB Vice President for Regional Development, Integration, and Business Delivery. While non-binding, the LOI outlines the framework for future legally binding agreements between the two parties, paving the way for a transformative infrastructure project.
Strategic Importance and Economic Impact
The new airport forms a core part of Ethiopian Airlines’ 2035 strategy, which emphasizes network expansion, infrastructure development, and investment in human capital. It is also expected to drive regional economic growth while reinforcing Africa’s position in global air transportation.
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Speaking on the agreement, Ahmed Shide, Ethiopia’s Finance Minister, underscored the project’s significance:
“Today’s signing of the Letter of Intent for the new mega airport development project is yet another testament to AfDB’s commitment to supporting Ethiopia’s ambitious flagship air transport project. It will not only reinforce Ethiopian Airlines’ competitive edge in passenger and cargo services but also enhance Africa’s global air connectivity and integration.”
AfDB President Akinwumi Adesina highlighted the bank’s commitment to strengthening regional transport as part of its broader agenda for regional integration.
“The African Development Bank is fully committed to supporting this transformative flagship project, which will strengthen the continent’s aviation leadership and economic integration,” Adesina said.
Enhancing Ethiopia’s Aviation Footprint
The Abusera project aims to complement Bole International Airport and boost Ethiopian Airlines’ ability to expand its intra-Africa network and global operations.
Ethiopian Airlines recently reported record-breaking revenue of $7.02 billion for the fiscal year ending June 30, 2024, reflecting a 14% increase from the previous year. The airline transported 17.1 million passengers, including 13.4 million on international routes and 3.7 million domestically, further cementing its leadership in Africa’s aviation sector.
