ADDIS ABABA, ETHIOPIA — Ethiopia is pushing ahead with its $12.5 billion Bishoftu International Airport, an infrastructure project designed to transform the country into one of the world’s major aviation gateways and strengthen Africa’s connections with global markets.
Ethiopian Airlines formally started construction in January at Bishoftu, about 45 kilometres southeast of Addis Ababa. The project will eventually accommodate as many as 110 million passengers a year, making it the largest airport in Africa by planned capacity.
The first phase is expected to open in 2030 with capacity for 60 million passengers annually. Plans include four runways, extensive aircraft parking and a major cargo operation that could handle millions of tonnes of freight each year.
Construction is moving ahead while Ethiopian Airlines works to secure financing and appoint contractors for the airport’s main infrastructure. That process has increasingly drawn some of the world’s biggest economic powers into Ethiopia’s aviation ambitions.
Chinese companies feature heavily among firms shortlisted for major construction work. American officials have also publicly pushed for US companies to participate, placing Bishoftu within a wider competition for infrastructure investment and commercial influence in Africa.
Ethiopian Airlines has postponed final contractor selection into early 2027 after prospective bidders requested more time to prepare proposals and financing arrangements.
The financing challenge reflects the enormous scale of the project. Ethiopian Airlines plans to contribute part of the capital while relying on development institutions, commercial lenders and other international investors for much of the remaining funding.
The African Development Bank has taken a central role in that process. Ethiopian Airlines appointed the bank as an initial mandated lead arranger, with the institution committing $500 million and leading efforts to mobilise billions more from other financiers.
Interest has also come from lenders and investors in China, the Middle East, Europe and the United States, turning Bishoftu into one of Africa’s most closely watched infrastructure financing projects.
Ethiopia’s ambitions extend far beyond constructing another airport. Bishoftu forms part of a wider strategy to establish Addis Ababa as a major connecting point between Africa, Asia, Europe, the Middle East and the Americas.
Ethiopian Airlines already operates one of the continent’s largest international networks, connecting more than 160 domestic and international passenger and cargo destinations. Its expansion has increasingly placed pressure on Addis Ababa Bole International Airport.
Bole can currently handle about 25 million passengers annually, but Ethiopian Airlines expects growing traffic to push the airport towards its limits. Physical constraints around the existing site also restrict major future expansion.
Bishoftu offers significantly more room for growth and sits at a lower altitude than Bole. The difference could improve aircraft performance, particularly on long-haul routes where altitude can affect fuel, cargo and passenger payloads.
The new airport will also place cargo at the centre of Ethiopia’s aviation strategy. Ethiopian Airlines is already Africa’s largest air-cargo operator and is considering further expansion of its freighter fleet.
The airline is close to a potential agreement with Boeing for as many as 10 long-haul cargo aircraft, according to people familiar with the discussions. Ethiopian Airlines carried about 897,000 tonnes of cargo during its last financial year, an increase of 16%.
Bishoftu is designed to eventually handle around 3.7 million tonnes of cargo annually. That capacity could strengthen Ethiopia’s position in the movement of high-value and time-sensitive African exports, including flowers, agricultural produce, pharmaceuticals and manufactured goods.
Ground connectivity will also shape the airport’s success. Ethiopia is developing a 38-kilometre high-speed rail connection between Addis Ababa and the new aviation hub, with trains designed to operate at speeds of up to 200 kilometres per hour.
The combination of airport, railway, cargo facilities and surrounding commercial development could create an aviation-led economic corridor rather than a standalone transport facility.
That model has helped cities such as Dubai, Doha and Istanbul use aviation infrastructure to support tourism, logistics, investment and international business. Ethiopia is attempting to develop its own version around one of Africa’s most successful airlines.
The project also carries significance for continental trade. Better air connections could support the African Continental Free Trade Area by reducing travel times and improving cargo links between African markets that remain poorly connected by direct flights.
Major challenges remain before that ambition becomes reality. Ethiopian Airlines still needs to secure substantial financing, finalise contractors and manage the risks associated with delivering one of Africa’s most expensive infrastructure projects.
Cost control will become particularly important as construction progresses. Large infrastructure developments can face delays, financing pressures and rising costs, while Bishoftu must eventually generate enough passenger and cargo demand to justify its enormous capacity.
Ethiopian Airlines enters that challenge from a position of relative strength. The state-owned carrier reported record revenue of $7.6 billion in its 2024/25 financial year and transported about 19 million passengers.
Its growth provides the commercial foundation behind Bishoftu’s scale, but the airport represents a much larger bet on where African aviation is heading.
Ethiopia is not simply trying to solve congestion at Bole International Airport. It is building infrastructure intended to influence how passengers, goods and investment move between Africa and the rest of the world.
If Bishoftu reaches its planned capacity, the project could shift the centre of gravity of African aviation towards Ethiopia and give the continent an airport capable of competing in scale with some of the world’s biggest international hubs.
