Addis Ababa. Ethiopian Airlines has officially broken ground on a monumental $12.5 billion construction project destined to reshape the continent’s aviation landscape.
Situated in the town of Bishoftu, approximately 45 kilometres southeast of the capital, Addis Ababa, the new Bishoftu International Airport is projected to become Africa’s largest aviation hub upon its scheduled completion in 2030.
The state-owned carrier, which holds the contract to design the ambitious four-runway facility, aims to address the looming capacity constraints at the existing Bole International Airport.
Prime Minister, Abiy Ahmed Ali, underscored the scale of the undertaking, noting that the new hub will accommodate up to 270 aircraft simultaneously and possess a staggering annual capacity of 110 million passengers.
This represents more than a fourfold increase over the current throughput of Ethiopia’s primary gateway, which the Prime Minister warned is set to reach its operational limits within the next two to three years.
The financing structure for this “mega-hub” relies on a combination of internal resources and international backing.
Abraham Tesfaye, the airline’s Infrastructure Development and Planning Director, confirmed that Ethiopian Airlines will self-fund 30 per cent of the project, with the remaining 70 per cent sourced from external lenders.
An initial allocation of $610 million has already been committed to earthworks, which are expected to conclude within twelve months, paving the way for main contractors to begin work in August 2026.
While the project was originally estimated to cost $10 billion, the budget has since been revised upward to $12.5 billion.
To meet this requirement, the African Development Bank has taken a leading role, pledging $500 million and spearheading efforts to secure a further $8.7 billion in credit.
According to Mr Tesfaye, the project has garnered significant interest from a diverse range of international financiers across the Middle East, Europe, China, and the United States.
This expansion aligns with the rapid growth of Ethiopian Airlines, which currently maintains its position as the largest and most profitable carrier in Africa.
The airline has aggressively expanded its network, adding six new routes during the 2024/25 period alone.
By shifting operations to Bishoftu—a location at a lower elevation than the high-altitude Addis Ababa—the airline also hopes to improve operational efficiency and fuel economy for long-haul departures.
