US$10 Billion Ethiopian Airlines–AfDB Abusera Mega Airport Project Launches

(BISHOFTU, ETHIOPIA) Ethiopia has moved a giant step closer to building the Abusera Mega Airport, a planned hub outside Bishoftu that officials say will reshape Africa’s air travel. On August 11, 2025, Ethiopian Airlines and the African Development Bank signed a Mandate Letter appointing the Bank as the Initial Mandated Lead Arranger and global coordinator for financing. As of August 14, 2025, the project is officially underway, with a projected cost of US$10 billion and a build plan spread across five phases.

Under the current structure, AfDB will seek to mobilize nearly US$8 billion from partners and creditors, provide an initial US$500 million loan (pending Board approval), and guide transparency and sustainability across the deal. The Ethiopian government, through Ethiopian Airlines, will contribute 20% of total funding. Groundworks are scheduled to begin in late 2025, with Phase I targeted for completion in November 2029.

The scale is hard to overstate. Phase I aims for capacity to handle 60 million passengers per year—more than double the throughput of Johannesburg or Cairo’s busiest airports today. At full build-out, planners set targets of 110 million passengers annually, plus 3.73 million tons of cargo. Designs include four runways, advanced passenger and cargo terminals, and direct rail and expressway links to Addis Ababa. A planned “airport city” would add shopping areas, hotels, and recreation spaces, anchoring jobs in logistics, hospitality, retail, and allied services.

Officials frame the project as a core pillar for the African Union’s Agenda 2063 and the Single African Air Transport Market (SAATM). The goal is to boost intra‑African connectivity, cut travel times across the continent, and back economic integration. Finance Minister Ahmed Shide attended the signing in Addis Ababa alongside AfDB President Dr. Akinwumi Adesina and Ethiopian Airlines CEO Mesfin Tasew, underscoring the state’s support and the airline’s central role as sponsor and future hub operator.

Financing and timeline

The Mandate Letter places AfDB at the center of the deal. Bank specialists will coordinate lenders, structure the package, and oversee risk and reporting. Ethiopian government agencies will handle permits, land, and community matters, including resettlement and compensation plans.

The build is split into five phases, with Phase I set to deliver the core runway and terminal systems before the end of 2029. Subsequent phases expand to the full 110‑million‑passenger vision.

Key timeline and financing points:
– AfDB to mobilize nearly US$8 billion from partners and creditors.
– AfDB to provide an initial US$500 million loan (pending Board approval).
– Ethiopian government (via Ethiopian Airlines) to provide 20% of total funding.
– Groundworks to begin late 2025.
– Phase I delivery by November 2029.

Capacity, facilities, and economic impact

Phase I capacity and long‑term targets:
– Phase I: 60 million passengers per year
– Full build-out: 110 million passengers per year
– Cargo target: 3.73 million tons annually
– Runways: Four planned
– Other features:
– Advanced passenger and cargo terminals
– Direct rail and expressway links to Addis Ababa
– An “airport city” with shopping, hotels, and recreation

Expected economic and social impacts:
– Tens of thousands of jobs in logistics, hospitality, retail, and services
– Improved cargo capabilities for farmers, exporters, and manufacturers
– Enhanced intra‑African connectivity aligned with SAATM and Agenda 2063
– Potential for Addis Ababa Bole International Airport to shift toward more domestic operations

“A transformative moment not only for Ethiopian Airlines and Ethiopia, but also for the entire continent,” said Dr. Akinwumi Adesina.
CEO Mesfin Tasew described the project as “a decisive step toward realizing a world‑class pan‑African gateway.”

Operational implications and traveler guidance

Near‑term traveler benefits:
– Better flight options and less congestion after Phase I opens
– Shorter connections for many intra‑African trips
– More predictable schedules and potentially better minimum connection times and baggage transfer procedures as airlines publish guidance

Important traveler instructions:
– Track entry, transit, and stay rules as operations come online.
– Ethiopia offers an e‑Visa for many nationalities. Apply via the official portal at https://www.evisa.gov.et for short visits and eligible transits.
– Rely on official government sources for visa requirements and avoid third parties promising special access or faster processing.

Project governance, risks, and next steps

Governance and oversight:
– AfDB to oversee structuring, reporting, and safeguards.
– Ethiopian ministries to coordinate permits, land management, resettlement, and compensation.

Major risks and points watchers will monitor:
– Cost control on a US$10 billion project
– Coordination among contractors for the four‑runway plan and airport city components
– Timely resettlement and community engagement to avoid delays

Immediate next procedural steps:
1. AfDB Board approval for the initial US$500 million loan
2. Final financing commitments and credit structuring led by AfDB
3. National approvals on permits and land, including resettlement and compensation plans
4. Launch of groundworks in late 2025
5. Delivery of core systems by November 2029 (Phase I)
6. Expansion to full capacity across later phases

Regional and social implications

Regional benefits:
– Faster hub‑to‑hub links could ease access to medical care, academic institutions, and seasonal employment.
– Improved cargo reliability could benefit farms, small exporters, and regional traders.
– More predictable travel options reduce missed connections and overnight costs for migrants and travelers.

For families, businesses, and workers:
– Families may see simpler flights and fewer bottlenecks once operations scale.
– Businesses should watch logistics and airport city milestones for opportunities in cold chain, warehousing, retail, and hospitality.
– Travelers planning 2026–2030 trips should track the November 2029 Phase I target.

The Abusera Mega Airport aims to be among the world’s largest hubs by 2030, with US$10 billion in investment, four runways, and capacity for 110 million passengers annually. What comes next is largely procedural but critical: AfDB Board approval, final financing, and the start of groundworks. For now, the focus remains on building, with the long‑term vision linking travel, trade, and jobs across the continent.