Ethiopian Airlines Group and the African Development Bank have signed a Letter of Intent for the finance and development of the planned Abusera International Airport.

The $7.8 billion project aims to address increasing passenger and cargo demands, solidify Ethiopia’s status as an aviation hub, and stimulate regional economic growth.

The agreement was signed on March 14 by the chief executive of Ethiopian Airlines Group, Mesfin Tasew Bekel, and Nnenna Nwabufo, African Development Bank’s vice president for regional development, integration and business delivery.

The new Abusera International Airport will be located in Bishoftu, approximately 40km from the current Addis-Ababa Bole International Airport (ADD).

The African Development Bank Group is one of Africa’s premier development finance institutions, comprised of the African Development Bank (AfDB), the African Development Fund (ADF), and the Nigeria Trust Fund (NTF).

The Bank has stated regional integration to be one of its High Five priorities. Multinational transportation is a key part of reaching that goal, improving interconnectedness and encouraging free movement within countries.

Ethiopian Airlines has echoed this sentiment. As one of Africa’s largest airlines, it has ambitious growth plans for 2035, emphasising network expansion, infrastructure development, and human capital investment to make it more competitive in the global aviation market,

The airline group reported $17.02 billion in revenue in the last fiscal year, a 14% year on year increase. It also transported 17.1 million passengers, 13.4 million on international routes, and 3.7 million domestically.

ADD was recently expanded as it is expected to reach its annual 25 million passenger capacity limit soon. The new airport will enhance Ethiopian Airline’s role in improving intra-African connectivity by proving a more extensive and efficient network, as well as strengthen ties between Africa and the rest of the world.

President of the African Development Bank Group, Dr. Akinwumi Adesina, said of the collaboration: “I’m a great friend of Ethiopia, and of course, Ethiopian Airlines is Africa’s pride, a symbol of excellence and resilience. The African Development Bank is fully committed to supporting this transformative flagship project, which will strengthen the continent’s aviation leadership and economic integration.”

The Bank’s finance minister, Ahmed Shide, added:  “Today’s signing of the Letter of Intent for the new mega airport development project is yet another testament to AfDB’s commitment to supporting Ethiopia’s ambitious flagship air transport project that will not only reinforce Ethiopian Airlines’ competitive edge in passenger and cargo services, but also enhance Africa’s global air connectivity and integration, solidifying the continent’s aviation hub status.”