AfDB, Ethiopian Airlines partner on US$7.8B mega airport project

ETHIOPIA – The African Development Bank (AfDB) and Ethiopian Airlines Group have signed a letter of intent (LOI) for the US$7.8 billion Abusera International Airport Project, designed to meet growing passenger and cargo demands.

Ethiopia is set to enhance its position as a leading aviation hub with a new international airport project aimed at driving regional economic growth.

Ethiopian Airlines Group CEO Mesfin Tasew Bekele formalized the initiative by signing a Letter of Intent (LOI) with African Development Bank Vice President for Regional Development, Integration, and Business Delivery, Nnenna Nwabufo.

The agreement was signed at the Bank’s headquarters in Abidjan on March 14, with Bekele joined by a high-level Ethiopian delegation led by Finance Minister Ahmed Shide.

Other officials included Ethiopian Airlines Group CFO Adamu Tadele, senior advisor to the Finance Minister Tiguist Fisseha, infrastructure director Abraham Tesfaye, and head of IFIs at the Ethiopian Ministry of Finance, Berhanu Anbessa.

The new Abusera International Airport will be built in Bishoftu, approximately 40 kilometers from Addis Ababa Bole International Airport.

As Ethiopia’s primary gateway, Bole International Airport has undergone significant expansion, but with its 25 million annual passenger capacity soon expected to be reached, the new airport will provide much-needed additional infrastructure.

By boosting Ethiopian Airlines’ operational efficiency and capacity, the development will strengthen intra-Africa connectivity and enhance links between Africa and the global aviation network.

Multinational transport projects like this play a crucial role in improving regional integration, aligning with one of the African Development Bank’s High Five priorities.

Finance Minister Shide emphasized that the project underscores the Bank’s commitment to supporting Ethiopia’s ambitions in air transport.

He noted that beyond reinforcing Ethiopian Airlines’ competitive position in passenger and cargo services, the new airport would solidify Africa’s status as a global aviation hub.

In a separate strategic move, Ethiopian Airlines has also partnered with Archer Aviation to introduce electric air taxi services.

The airline becomes Archer’s second launch customer, following United Airlines, as the US-based developer expands its urban air mobility network.

Announced on March 27, the agreement positions Ethiopian Airlines to integrate electric air taxis into its operations, feeding domestic traffic into its extensive international network of over 140 destinations.

These initiatives reflect Ethiopian Airlines’ commitment to innovation, market expansion, and sustainable aviation solutions.

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