Ethiopia to build Africa’s largest airport for $7.8 billion

• Ethiopia is set to construct Africa’s largest airport at a projected cost of $7.8 billion.
• Set for completion in 2040, the airport will have the capacity to handle 110 million passengers a year and provide aprons for 270 aircraft.
• While AfDB has pledged ‘full commitment’ to fund the project, Ethiopian Airlines Group is engaging other financiers, including the EXIM Bank of China.

Ethiopia, home to Africa’s largest airline, has announced plans to build the continent’s biggest airport, set to rival global aviation hubs such as Dubai International and London’s Heathrow. Designed as a state-of-the-art airport city, the facility will have the capacity to handle over 100 million passengers annually, positioning Ethiopia as a key player in global air travel.

Already holding the title of Africa’s leading airline in passenger numbers, destinations, fleet size, and revenue, Ethiopian Airlines is now aiming for another milestone—constructing the continent’s largest airport. Additionally, Ethiopian Airlines ranks as the world’s fourth-largest carrier by the number of countries served.

To bring this vision to life, Ethiopian Airlines Group has partnered with the African Development Bank (AfDB) to develop the new airport in Abusera, Oromia region. The $7.8 billion project is expected to be completed by 2040, with partial funding from AfDB, which has reaffirmed its “commitment” to the venture.

“The parties signed a letter of intent for the partnership to construct the facility,” Ethiopia’s finance ministry said in an update. “This project, worth $7.8 billion, aims to dramatically scale up Ethiopia’s aviation capacity, to handle 60 million passengers annually by 2040, up from the current 17 million.”

Africa’s largest airport: Ethiopian Airlines set to get new home address

The communique said the MoU was signed between Mesfin Tasew, CEO of Ethiopian Airlines Group, and Nnenna Nwabufo, vice president for regional development, integration, and strategy at AfDB.

Ethiopia’s finance minister Ahmed Shide lauded the AfDB for it’s “comprehensive support.”

AfDB President Akinwumi Adesina fell short of specifying an exact amount or percentage thereof but reassured all parties concerned of the bank’s “full commitment” to supporting the airport, and lauded Ethiopia for an economic growth rate of more than 8 per cent last year.

According to Ethiopian Airlines Group CEO Mesfin Tasew, the new airport “will play a vital role in enhancing air connectivity between Africa and the rest of the world. When fully completed the mega airport will be in par with major global aviation hubs like Dubai and Heathrow.”

On account of it’s sheer size and the huge amount of traffic that it will be going through it, the designers are constructing an “airport city,” the media report details. So far, authorities have been working with French consulting firm, ADPI, on the new airport.

The communique says after considering the business case for seven different locations, Abusera, about 40 km South East of Addis Ababa emerged as the best on account of its lower elevation and proximity to the capital, among other things.

“The airport will have the capacity to handle 110 million passengers a year and provide aprons for 270 aircraft. The project will be developed in two phases and when the first phase is completed in 2029, the airport will have two runways and a passenger terminal with annual handling capacity of 60 million passengers,” reads the report.

The new airport’s second phase is modelled to include the construction of two additional runways, and a second terminal.

By all measures, the new airport is poised to dwarf Ethiopia Airline’s current base, Bole International Airport. Opened in 1962, Bole airport has an annual capacity of around 22 million passengers.

However, with Ethiopia’s tourist arrivals projected to have a 6 per cent annual increase, the airport capacity will soon come under pressure. Further, Ethiopian Airlines is growing at an annual rate of 20 per cent, and coupled with fast growing tourist receipts, the country has been considering plans to expand Bole International Airport.

Read also: Flight Capacity in 2024: Resurgence of the African Airlines

Annual passenger handling capacity

“A new VIP terminal has been built and Terminal I and II have been expanded significantly, growing the annual passenger handling capacity to 25 million,” a press report details.

That been the case, “This (growth) has necessitated the construction of a new mega airport that will transform Ethiopia into a global aviation hub.” 

Once complete, the new airport will have four runways and feature a 1.1 million sqm terminal, including passenger facilities, another 126,190 sqm of airline support facilities and more than 100,000 sqm of cargo and airport support facilities.

To handle the architectural design, Ethiopian Airlines Group has signed a technical advisory and consultancy contract with Dar Al-Handasah Consultants, a partner with Zaha Hadid Architects, to spearhead the design and supervision of the new project.

Summing up, Tasew said;“ The project will not only enhance connectivity, but also drive economic growth and prioritises environmentally-responsible practices in our country and beyond, reflecting the airline’s commitment to innovation and sustainability.” 

“With its exceptional capacity and world-class facilities, this new airport promises to elevate African aviation and strengthen partnerships, marking a significant advancement for the region’s air travel infrastructure,” he told press.

Along with the construction of this grand airport city, Ethiopian Airlines has taxed on the runway, an ambitious growth plan dubbed Vision 2035, which aims at making the aviation group a US$25 billion company handling 67 million passengers per year.

“In the 2023-2024 fiscal year the national airline carried 17 million passengers and generated a seven billion USD revenue,” it reports.

To fund this mega project, Ethiopian Airlines Group is holding talks with various international financial institutions including the EXIM Bank of China among others.