Bishoftu International Airport (BIA) is a colossal project, one that matches Ethiopian Airlines’ ambitions. It is finally breaking ground after six years of development. Located in the Bishoftu district, roughly 40km south-east of Addis Ababa, the future hub will cover 35km², making it the continent’s largest aviation investment, with $12.7bn mobilised.

The first phase, expected within four years, should deliver a capacity of 60 million passengers per year from the moment it opens. Once the whole project is complete, the infrastructure will target an annual capacity of 110 million travellers, overtaking Atlanta – currently the world’s busiest airport, with 108 million passengers in 2024. Africa’s airports lag well behind: the continent’s busiest is Cairo, with 30.94 million passengers in 2025, ahead of Johannesburg (19.7 million) and Cape Town (11.11 million).

“This project embodies Ethiopia’s national vision for infrastructure and forms a cornerstone for the future of its aviation sector, built on economic ambition, global connectivity and sustainable development,” said Ethiopia’s finance minister, Ahmed Shide, when the project was unveiled in Addis Ababa in September 2025. Bishoftu, he added, “will establish Ethiopia as the continent’s aviation capital and as a key gateway to the world”.

In the big league

To support this scale-up, the airport will have four parallel Code 4E runways (45m wide and 4,800m long), with aprons capable of accommodating up to 270 aircraft at once. The X-shaped layout, conceived as a symbol of the country’s different regions, is centred on a central axis inspired by the Great Rift Valley.

Financially, the project ranks among the continent’s most expensive. By comparison, the expansion of Egypt‘s Cairo International’s Terminal 4 is estimated at $3.5bn, while the much larger Dubai World Central complex, spanning 142km², has cost $35bn. At 35km², Bishoftu airport will be similar in size to Cairo’s (37km²) but its ambitions are considerably greater.

The strategy reflects strong growth in African air transport more broadly: according to IATA, passenger traffic on the continent is expected to double within 15 years. Globally, Atlanta still holds the top spot, but Dubai – with 92.3 million passengers in 2024 and 6.1% annual growth, compared with Atlanta’s 3.3% – is gradually closing the gap.

Amid this momentum, Ethiopia intends to establish itself as a benchmark hub, drawing on its geographical position and Ethiopian Airlines’ strength to efficiently connect Africa with Asia and the Middle East.

A diverse group of backers

Addis Ababa’s Bole International Airport, in the heart of the capital, handles around 25 million passengers a year and is reaching its limit. Built in 2003 with a capacity of six million passengers, it was quickly overwhelmed. Once the country’s new flagship facility opens, Bole will be repurposed for domestic flights.

Ethiopian Airlines also plans to build an airport city alongside its new hub, including a 350-room hotel, a maintenance centre and an industrial zone. The site will be linked to Addis Ababa by a 38km railway line and a multi-lane motorway.

The project’s budget has more than doubled over five years, from $5bn to $12.7bn, and Ethiopian’s chief executive, Mesfin Tasew Bekele, has been touring Western and Asian capitals to raise funds. The airline, which recorded $7bn in revenue in 2025, will finance 15.75% of the project – some $2bn – a stake likely to reassure investors.

Sean Mendis, an industry specialist, says Ethiopian benefits from strong investor confidence: “This investment is arguably one of the safest to be found in Africa. Ethiopian Airlines continues to grow, and airport revenues will likely be enough to cover repayments or meet revenue forecasts.”

Bringing ‘Africa to the world and the world to Africa’

The African Development Bank (AfDB), which was appointed lead arranger in August 2025, has committed $500m and is working to raise a further $10bn.

“As mandated lead arranger, the AfDB is firmly committed to working with lending partners to bring this project to life,” said Max Magor Ndiaye, director of the AfDB’s Syndication, Co-financing and Client Solutions department. Investing in a new global hub for the Ethiopian Airlines Group, he added, “means anchoring a pan-African asset that will bring Africa to the world and the world to Africa”.

The AfDB and Ethiopian declined to reveal investors’ identities or the amounts committed. The US Development Finance Corporation, however, has indicated potential support of $1bn in financing plus $1bn in political risk insurance, provided there is no Chinese involvement. The US has backed the project since its founding.

The US Export-Import Bank (US EXIM) has also expressed interest, with no cap on financing but a requirement of at least 51% US content. Discussions are also underway with the Beijing-led Asian Infrastructure Investment Bank (AIIB) and with the European Investment Bank (EIB). Neither Ethiopian nor the AfDB agreed to comment on progress in the search for financing.

Ties with the United States and China

Economic ties between Beijing and Addis Ababa are nothing new, however. Kiya Tsegaye, an Ethiopian specialist in investment, business and corporate law, says Chinese state-owned enterprises have extensive experience in construction in Ethiopia and can deliver major infrastructure projects at a lower cost than their Western counterparts.

The Export-Import Bank of China financed the Addis Ababa-Djibouti railway line through a $3.6bn loan and the expansion of Bole International Airport through a $340m facility – both projects carried out by Chinese firms.

“Washington views this project from a practical standpoint: the main goal is the successful completion of the Bishoftu hub, which aligns with long-term US commercial interests, whoever owns the concrete. The core value of the US-Ethiopia aviation relationship lies in the skies and fleet procurement, not in terminal construction,” the Ethiopian lawyer sums up.

Teams from around the world are working on this infrastructure project, which is set to cement Addis Ababa’s position as Africa’s aviation powerhouse. The international project management consortium is led by Sidara (formerly Dar Group), a Dubai-based engineering and consultancy group, and brings together Zaha Hadid Architects and Pascall+Watson alongside several Sidara-group entities, including Landrum & Brown, TYLin, Penspen and Introba.

Procurement will prioritise concrete, aggregates and steel produced or recycled locally in Bishoftu, and the design is based on a modular prefabrication approach. London-based Zaha Hadid Architects is known, among other projects, for designing the headquarters of shipping line CMA CGM in Marseille and Beijing Daxing International Airport.