• Ethiopia begins construction of Africa’s largest airport near Addis Ababa
• Bishoftu airport planned to handle 110 million passengers annually
• Project costs over $12.5 billion, backed by Ethiopian Airlines, lenders

Ethiopia has officially launched construction of a new airport that is intended to become Africa’s largest when completed in 2030. Construction began on Saturday in Bishoftu, a town about 40 km southeast of Addis Ababa.

The project includes an airport with four runways and capacity for up to 270 aircraft. The first phase will handle 60 million passengers a year, before capacity is gradually expanded to 110 million passengers annually. This would mark a significant increase compared with Bole International Airport, currently the country’s main international gateway. Ethiopian authorities estimate that Bole will reach full capacity within the next two to three years as regional and international traffic continues to grow.

“The project will strengthen Ethiopian Airlines’ global competitiveness, enhance Africa’s connectivity under the AfCFTA framework, expand trade and tourism corridors, and position Ethiopia as a premier intercontinental hub,” Prime Minister Abiy Ahmed said in a post on X.

To sustain Ethiopia’s rapid aviation growth and Ethiopian Airlines’ expanding global network, a new mega hub is being developed alongside Addis Ababa Bole International Airport, which is nearing its expanded capacity of 25 million passengers annually. This multi-airport strategy… pic.twitter.com/AQvCPrMAhZ

— Abiy Ahmed Ali ?? (@AbiyAhmedAli) January 10, 2026

According to reports late last week in international media, the project is expected to cost more than $12.5 billion, with Ethiopian Airlines contributing 30% of the total. The remainder is expected to be financed by lenders who have not been named.

In August, the African Development Bank (AfDB) was appointed mandated lead arranger to mobilize financing for the project. The bank said at the time that the airport was expected to cost $10 billion, and that it was responsible for raising $8 billion in debt financing. It also said it planned to provide $500 million in funding, subject to board approval.

If the Bishoftu project is completed on schedule, Africa would gain a new high-capacity airport, joining a limited group of major hubs on the continent. These are currently dominated by long-established airports, including Cairo International Airport, Johannesburg’s OR Tambo Airport, Cape Town International Airport, and Casablanca’s Mohammed V Airport. These hubs account for the bulk of international air traffic and shape the continent’s connectivity with the rest of the world.

The expansion of such infrastructure could be an asset for Africa, as air transport is expected to play a growing role in trade, tourism, and passenger travel. According to the International Air Transport Association (IATA), African air traffic is projected to grow by an average of 4.1% a year over the next 20 years, driven by demographic growth, rapid urbanization, and the expected expansion of intra-African trade as regional links strengthen.

In the near term, however, this potential remains constrained by the sector’s underlying economics. While global airline profitability is expected to stabilize in 2026, Africa is projected to remain the least profitable region for air transport. IATA estimates that African airlines will generate an average net profit of $1.30 per passenger in 2026, compared with a global average of $7.90.

Louis-Nino Kansoun