Ethiopia's $12.5-billion Bishoftu International Airport project is attracting interest from firms and lenders from the US, China, Europe, the Middle East, and multilateral institutions. The project, which began in January, aims to create a new hub for Ethiopian Airlines Group, Africa's largest carrier. The airport is expected to open in 2030 with an initial capacity of 60 million passengers annually and eventual capacity of 110 million. It will have space for 270 aircraft.
The US is pushing its aviation companies and technology for the project, with the Department of Commerce identifying areas including airport infrastructure, engineering, aviation systems, cargo logistics, energy, security, and smart-terminal technology. US Deputy Assistant Secretary of Commerce for the Middle East and Africa, Mark Mitchell, said Washington was "closely engaged" in pushing to secure US participation in the project. Ethiopian Airlines has already agreed to buy six more Boeing 787-9 Dreamliners, adding to 20 aircraft already ordered.
China, however, starts from a stronger position in the construction race, with 15 of the 33 shortlisted firms and consortiums for four major works packages being Chinese companies or Chinese-led groups. The list includes the China Communications Construction Company, China Road and Bridge Corporation, China Civil Engineering Construction Corporation, and Beijing Urban Construction Group. The US presence in the construction competition is smaller, with Lane Construction, a US company owned by Italy's Webuild, participating through joint ventures.
The construction contest is still open, with Ethiopian Airlines moving the selection of the main contractors to early January 2027 after bidders asked for more time to prepare proposals and arrange financing. Ethiopian Airlines plans to provide 30% of the $12.5-billion project cost from its own resources, with the remaining $8.75-billion to come from external financing. The African Development Bank has been appointed as the mandated lead arranger and is working to mobilise up to $8-billion in debt.
The search for money is bringing more institutions into the project, with Ethiopian Finance Minister Ahmed Shide and Ethiopian Airlines chief executive Mesfin Tasew meeting Asian Infrastructure Investment Bank (AIIB) president Zou Jiayi in Addis Ababa to discuss potential AIIB participation. Ethiopia has also held discussions with China Exim Bank, the Industrial and Commercial Bank of China, China Development Bank, and Bank of China as it searches for external funding.
The financing picture extends well beyond Washington and Beijing, with lenders from the Middle East, Europe, China, and the US expressing interest, and companies from Turkey, Italy, France, Qatar, South Korea, Portugal, Russia, India, the US, and elsewhere competing for construction work. This competition creates room for Ethiopia to assemble the financing, technology, and contractors needed for the project.
Upon completion, Bishoftu International Airport will offer access to one of Africa's fastest-growing aviation businesses, with Ethiopian Airlines reporting a 20% increase in revenue to about $9.1-billion in the 2025/26 financial year. The carrier has expanded its passenger and cargo network across Africa and beyond, creating pressure for a hub larger than what Bole can ultimately provide. Prime Minister Abiy Ahmed has described Bishoftu as the "largest aviation infrastructure project in Africa's history".
Key points
- The US and China are competing for a stake in Ethiopia's $12.5-billion Bishoftu International Airport project.
- The project aims to create a new hub for Ethiopian Airlines Group, Africa's largest carrier.
- The airport is expected to open in 2030 with an initial capacity of 60 million passengers annually and eventual capacity of 110 million.
