Ethiopian Airlines Commences Construction Of $12.5bn Bishoftu International Airport City

Ethiopian Airlines Group has officially launched the construction of the $12.5 billion Bishoftu International Airport (BIA), marking the beginning of Africa’s largest aviation infrastructure project to date. The groundbreaking ceremony took place on January 10, 2026, in the town of Bishoftu, located approximately 45 kilometers southeast of Addis Ababa.

This ambitious “Airport City” is designed to future-proof Ethiopia’s role as the continent’s premier aviation hub, as the existing Addis Ababa Bole International Airport is projected to reach its saturation limit of 25 million passengers annually within the next three years.

The project is structured in phases, with Phase One scheduled for completion by 2030. At this stage, the facility will feature four runways and the capacity to accommodate 60 million passengers per year—surpassing the current traffic of Africa’s busiest hubs in Cairo and Johannesburg.

Upon full completion of its master plan, the airport will handle 110 million passengers annually and provide parking for up to 270 aircraft simultaneously. The development will also integrate a 350-room luxury hotel, a massive cargo terminal capable of processing 1.5 million tons of freight annually, and a dedicated aircraft maintenance center.

Prime Minister Dr. Abiy Ahmed, who presided over the groundbreaking, emphasized that the airport is a central pillar of Ethiopia’s national transformation and a key driver for the African Continental Free Trade Area (AfCFTA). The funding for the $12.5 billion project involves a 30% contribution from Ethiopian Airlines, with the remaining 70% sourced from international lenders.

 The African Development Bank has already pledged $500 million and is leading a consortium to raise an additional $8.7 billion from investors in the Middle East, Europe, China, and the United States.

Ethiopian Airlines Group CEO, Mr. Mesfin Tasew, noted that the new hub will be seamlessly connected to Addis Ababa via high-speed rail and road networks, ensuring a unified aviation ecosystem.

 As the airline celebrates its 80th anniversary, the Bishoftu project underscores a strategic “Vision 2035” to place Ethiopia among the world’s top 20 most competitive aviation groups. Following the completion of initial earthworks, for which $610 million has already been allocated, main contractors are scheduled to commence large-scale structural work in August 2026.