Ethiopian Airlines, AfDB sign Letter of Intent to forge partnership on the new airport mega project
Addis Ababa, March 14, 2025 (FMC) — Ethiopian Airlines Group today signed a Letter of Intent (LoI) with the African Development Bank (AfDB), establishing a partnership on the new Bishoftu International Airport Development Project in Ethiopia, a press release obtained by FMC revealed.
The LOI was signed by Mr. Mesfin Tasew, Ethiopian Airlines Group CEO, and Mrs. Nnenna Nwabufo, Vice President for Regional Development, Integration, and Strategy, representing the African Development Bank (AfDB).
The signing occurred in the presence of Akinwumi Adesina, the President of AfDB and Mr. Ahmed Shide, Minister of Finance of the Federal Democratic Republic of Ethiopia.
Ethiopia’s new international airport expansion project, spearheaded by the state-swned Ethiopian Airlines Group, will address the fast growing international and domestic demand for passenger and cargo services, which the current Bole International airport cannot accommodate as it will reach its maximum capacity at the current pace of passenger growth.
The new mega Airport, estimated to cost US$7.8 billion, will increase annual passenger capacity from 17 million to over 60 million by 2040, reinforcing Ethiopian Airlines’ position as Africa’s leading aviation group and maintaining its competitive edge in passenger and cargo transport, aviation training, flight catering, maintenance, ground handling services, as well as supporting Ethiopia’s aspiration for major tourism destination.
The new international hub airport will not only drive Ethiopia’s economic development but also enhance Africa’s global air connectivity and integration, solidifying the continent’s aviation hub status.
During the signing ceremony, Minister Ahmed Shide appreciated the Bank’s comprehensive support to Ethiopia’s development with more than USD 1.2 billion current portfolio investment in key sectors.
In his remarks, the Finance Minister gave an update on the success of Ethiopia’s macroeconomic reform led by Prime Minister Abiy Ahmed, critical to driving inclusive growth to build a robust economy that benefits all Ethiopians.
Minister Ahmed Shide expressed Ethiopia’s gratitude for President Adesina’s leadership and support to Ethiopia’s development over his ten-year tenure.
In addition to the partnership on the new Airport Project, the Minister requested the Bank’s support to the macroeconomic reform agenda as well as for transformational projects linked to regional integration and renewable energy, among others.
President Dr. Akinwumi Adesina, for his part, expressed the Bank’s full commitment to support the new Airport development project, which he referred as an African flagship Project, and applauded the Government of Ethiopia’s 8.1% GDP growth recorded in the last year, as well as Addis Ababa’s fast transformation under the leadership of Prime Minister Abiy Ahmed (PhD).
The two sides agreed to deepen the existing strong partnership through strategic and innovative engagements that benefits all Ethiopian and the region at large.
