Ethiopia Breaks Ground on Africa’s Largest Airport in $12.5 Billion Aviation Bet

Ethiopia has officially launched construction of what it says will become the largest airport in Africa, a $12.5 billion mega-project designed to cement the country’s ambition as a global aviation hub and accelerate its economic integration with the world.

Ethiopian Airlines, the state-owned flag carrier and Africa’s biggest airline by fleet and destinations, announced on Saturday the start of works on the new Bishoftu International Airport, located about 45 kilometers southeast of the capital, Addis Ababa. The airport is expected to be completed by 2030, according to government officials.

Prime Minister Abiy Ahmed described the project as a landmark moment for the continent’s transport infrastructure. “Bishoftu International Airport will be the largest aviation infrastructure project in Africa,” he said in a post on X, underscoring the strategic importance of aviation to Ethiopia’s long-term growth plans.

Once completed, the airport will feature four runways, parking capacity for 270 aircraft, and the ability to handle up to 110 million passengers annually. That figure is more than four times the capacity of Addis Ababa’s current main airport, Bole International Airport, which officials say is likely to reach its operational limits within the next two to three years.

The scale of the project reflects the rapid growth of Ethiopian Airlines, which has transformed itself over the past decade into a dominant player in African aviation, competing with Middle Eastern and European carriers for long-haul traffic connecting Africa, Asia, Europe, and the Americas.

The airline has already secured the design contract for the new airport and will play a central role in overseeing its development.

Despite Ethiopia’s ongoing debt challenges, the government and the airline say financing for the airport is taking shape. Abraham Tewolde, Director of Infrastructure Development and Planning at Ethiopian Airlines, told reporters that the carrier will finance 30% of the project, with the remainder covered by external lenders.

Around $610 million has already been allocated for land preparation and site leveling, a phase expected to be completed within a year. Major contractors are scheduled to begin construction in August 2026.

The project’s cost has risen from an initial estimate of $10 billion to $12.5 billion, reflecting both design expansion and global increases in construction and financing costs.

Among the key financiers is the African Development Bank, which said last August it would provide $500 million and lead efforts to mobilize up to $8.7 billion from other lenders. According to Abraham, financial institutions from the Middle East, Europe, China, and the United States have shown “strong interest” in funding the project.

The airport launch comes as Ethiopia navigates complex debt restructuring negotiations, including discussions with international bondholders and multilateral lenders. While those talks have faced setbacks, the government appears determined to press ahead with large-scale infrastructure projects it sees as critical to long-term competitiveness.

Aviation remains one of Ethiopia’s most successful state-led sectors. Ethiopian Airlines has continued to expand even as other parts of the economy face pressure from inflation, foreign exchange shortages, and post-conflict recovery.

The airline added six new routes during 2024 and 2025, and officials say revenues continue to grow, supported by rising passenger demand and cargo operations.

If delivered on schedule, Bishoftu International Airport would not only transform Ethiopia’s air transport capacity but also reshape aviation flows across Africa. With few airports on the continent capable of handling ultra-high passenger volumes, the project positions Ethiopia to compete directly with global hubs in the Gulf and Europe for transit traffic.