Ethiopia has begun construction on a new $12.5 billion airport outside Addis Ababa, a project expected to become the largest aviation facility on the African continent when completed in 2030. The development marks a major expansion of the country’s aviation infrastructure and reflects Ethiopia’s ambition to strengthen its position as a continental transport and logistics hub.
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The airport is being built in Bishoftu, about 45 kilometres south-east of the capital, with Ethiopian Airlines overseeing the design and development. According to Reuters, the project includes four runways, parking space for 270 aircraft and a planned passenger capacity of 110 million travellers a year, placing it among the largest airports globally by scale.
Capacity constraints at Addis Ababa’s Bole International Airport have been a key driver behind the investment. Traffic growth has accelerated in recent years, and officials estimate the existing airport will reach its operational limits within the next two to three years. The new facility is intended to absorb long-term growth in passenger and cargo volumes while supporting Ethiopia’s broader trade and tourism ambitions.
Financing for the airport will be led by Ethiopian Airlines, which plans to fund roughly 30 per cent of the project from its own resources, with the remainder raised through external lenders. As reported by Reuters, the airline has already committed more than $600 million to early earthworks, which are expected to be completed within a year, ahead of large-scale construction starting in 2026.
Multilateral lenders are expected to play a central role. According to the African Development Bank, the institution has pledged $500 million and is coordinating efforts to mobilise up to $8.7 billion from international financiers. Interest has reportedly been shown by lenders from the Middle East, Europe, China and the United States, highlighting the project’s strategic importance.
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The airport’s cost has increased from an initial estimate of $10 billion, reflecting rising construction prices and the scale of the design. Despite this, analysts note that large hub airports often generate long-term economic returns through job creation, improved connectivity and increased foreign investment, particularly in fast-growing aviation markets.
Ethiopian Airlines remains central to the country’s aviation strategy. As reported by IATA, the carrier is Africa’s largest by network reach and has continued to expand routes and revenues despite global industry pressures. The Bishoftu airport is expected to support this growth by providing capacity for future fleet expansion and reinforcing Ethiopia’s role as a key gateway between Africa, Europe, Asia and the Middle East.