The African Development Bank (AfDB) has announced that it has signed a letter of intent (LoI) with the Ethiopian Airlines Group for the financing of the new $7.8-billion Abusera International Airport project. This will be located at the town of Bishoftu, some 40 km from the existing Addis Ababa Bole International Airport.

“I’m a great friend of Ethiopia, and of course, Ethiopian Airlines is Africa’s pride, a symbol of excellence and resilience,” highlighted AfDB president Dr Akinwumi Adesina. “The [AfDB] is fully committed to supporting this transformative flagship project, which will strengthen the continent’s aviation leadership and economic integration.”

Although the Addis Ababa Bole International Airport was recently expanded, it was still expected to hit its maximum capacity of 25-million passengers a year soon. Hence the need for a new airport, to meet the ever-increasing passenger and air cargo demand.

The new airport will also strengthen Ethiopia’s status as a leading aviation hub and increase Ethiopian Airlines’ role in developing intra-African and African-global air connectivity by allowing the carrier to create a larger and more efficient network. This will also impel the growth of the regional economy and help stimulate regional integration (which is one of the AfDB’s “High Five” priorities).

“[This] signing of the [LoI] for the new mega airport development project is yet another testament to AfDB’s commitment to supporting Ethiopia’s ambitious flagship air transport project that will not only reinforce Ethiopian Airlines’ competitive edge in passenger and cargo services, but also enhance Africa’s global air connectivity and integration, solidifying the continent’s aviation hub status,” affirmed Ethiopian Finance Minister Ahmed Shide. The LoI was signed at the AfDB head office, in Abidjan, Côte d’Ivoire.

Ethiopian Airlines is the biggest and most successful airline in Africa. In the financial year ending June 30, 2024, it earned record revenues of $7.02-billion, a 14% rise over those accrued in the previous financial year. It transported 17.1-million passengers, 13.4-million of them on international routes.

Although the LoI was signed on March 14, the news was not released until Tuesday (March 25).