By Baboloki Semele: Ethiopian Airlines Group and the African Development Bank (AfDB) have taken a significant step toward transforming Ethiopia into a leading global aviation hub. The two entities signed a Letter of Intent on March 14, 2025, for the development of Abusera International Airport, a $7.8 billion project aimed at meeting the rising demand for passenger and cargo services in Africa.
The signing ceremony took place at the African Development Bank headquarters in Abidjan, where Ethiopian Airlines Group CEO Mesfin Tasew Bekele and AfDB Vice President for Regional Development, Integration and Business Delivery, Nnenna Nwabufo, formalized the agreement. The Ethiopian delegation was led by Finance Minister Ahmed Shide and included key officials from the airline and the Ethiopian Ministry of Finance.
The planned Abusera International Airport, to be located in Bishoftu, approximately 40 kilometers from Addis Ababa, is expected to ease congestion at the existing Bole International Airport, which is nearing its annual passenger capacity of 25 million. The new airport will enhance Ethiopia’s aviation infrastructure, boost economic growth, and solidify the country’s position as a strategic gateway for air travel within Africa and beyond.
Multinational transportation and improved connectivity remain central to AfDB’s regional integration agenda, one of its core “High Five” priorities. The Bank’s investment in Abusera International Airport aligns with its broader goal of promoting free movement between African nations and fostering economic partnerships.
Dr. Akinwumi Adesina, President of the African Development Bank Group, expressed his strong support for the initiative. “I’m a great friend of Ethiopia, and of course, Ethiopian Airlines is Africa’s pride, a symbol of excellence and resilience. The African Development Bank is fully committed to supporting this transformative flagship project, which will strengthen the continent’s aviation leadership and economic integration.”
Finance Minister Ahmed Shide also emphasized the economic significance of the project. “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. This initiative will not only reinforce Ethiopian Airlines’ competitive edge in passenger and cargo services but also enhance Africa’s global air connectivity and integration, solidifying the continent’s aviation hub status.”
Ethiopian Airlines, Africa’s largest and most successful airline, has been steadily advancing its Vision 2035 growth strategy, which prioritizes network expansion, infrastructure development, and human capital investment. The airline’s financial performance reflects its upward trajectory, with record revenues of $7.02 billion in the fiscal year ending June 30, 2024—a 14% increase from the previous year. Passenger traffic also surged, with 17.1 million travelers, including 13.4 million on international routes and 3.7 million on domestic flights.
The airline’s investment in Abusera International Airport underscores its commitment to long-term expansion and operational efficiency. Once completed, the facility is expected to handle significantly higher volumes of passenger and cargo traffic, further strengthening Ethiopia’s role as a major player in global aviation.
The development of Abusera International Airport is anticipated to generate thousands of direct and indirect jobs, bolster tourism, and facilitate international trade. According to industry analysts, efficient airport infrastructure is a crucial driver of economic growth, enabling African countries to capitalize on the continent’s rapidly growing aviation sector.
Increased air connectivity will support the African Continental Free Trade Area (AfCFTA) by reducing trade barriers and fostering cross-border commerce. By providing state-of-the-art infrastructure, Ethiopia’s new airport will serve as a model for other nations seeking to enhance their aviation capabilities.
As Ethiopia and the African Development Bank move forward with this landmark project, all eyes will be on the next stages of development, which include feasibility studies, financing arrangements, and construction planning. The collaboration between AfDB and Ethiopian Airlines marks a pivotal moment in the continent’s journey toward a more interconnected and prosperous future.
