Ethiopia Breaks Ground on $12.5bn Mega Airport Near Addis Ababa — A New African Hub in the Making

Ethiopia • Aviation • Infrastructure

Construction begins in Bishoftu as Ethiopian Airlines says the new airport will eventually handle up to 110 million passengers a year.

Officials attend the groundbreaking ceremony for the Bishoftu International Airport project in Ethiopia.
Officials at the groundbreaking ceremony for Bishoftu International Airport. Credit: World Aviation Festival

Ethiopia has formally started construction on a vast new international airport near Bishoftu, about 45km southeast of Addis Ababa, in a project valued at roughly $12.5 billion. Backed by Ethiopian Airlines and international lenders, the plan is designed to relieve mounting pressure on the country’s current main gateway, Addis Ababa Bole International Airport, and to expand Ethiopia’s role as a major connecting hub between Africa and the rest of the world. According to Reuters’ report on the launch, the airport is being presented as the biggest aviation infrastructure project on the continent.

What’s being built — and why it matters

The new development, widely referred to as Bishoftu International Airport (BIA), is planned as a multi-phase, four-runway “greenfield” build with large aircraft parking capacity and room for future growth. In its official press release, Ethiopian Airlines said construction commenced on 10 January following a groundbreaking ceremony and that the project would reshape aviation connectivity within Africa and beyond.

  • Phase one target: completion by 2030, with capacity of about 60 million passengers annually (as stated by Ethiopian Airlines).
  • Full build-out ambition: capacity rising to 110 million passengers a year, with space to park a large fleet, according to Reuters.
  • Strategic goal: reduce congestion at Addis Ababa’s existing hub while enabling more long-haul routes, cargo flows, and regional connections (per Ethiopian Airlines and industry coverage).

The stakes are high: the country’s current main airport is expected to hit capacity limits in the near term as passenger demand and airline operations grow, a key reason officials say a new facility is urgent. Reuters noted the new airport’s planned throughput is more than four times the capacity of Ethiopia’s existing main airport.

“We are embarking on a new chapter with the groundbreaking of Bishoftu International Airport that will redefine the continent’s aviation ecosystem.”

— Ethiopian Airlines Group CEO Mesfin Tasew, quoted in the airline’s press release

How it will be funded

Financing is expected to be a mix of airline investment and external lending. Ethiopian Airlines has said it intends to fund around 30% of the project, with the remainder covered by lenders, while early site works (earthworks) have already been budgeted. Reuters reported that initial earthworks were costed at $610m and that major construction is scheduled to begin later in 2026.

One major institution already publicly associated with the funding effort is the African Development Bank, which has been cited in reports as pledging support and helping coordinate broader financing for the build-out. (Funding structures can evolve as projects move from early works into full construction, so the final mix will likely be watched closely across the aviation and infrastructure sectors.)

What happens next — timeline to watch

While the headline numbers are huge, airport projects of this scale are typically built in stages, with capacity expanding as terminals, runways, airside systems, and transport links come online. Industry coverage, including World Aviation Festival’s write-up, frames the first-phase opening around 2030, with later phases taking the airport toward its full long-term capacity.

For Ethiopian Airlines, the logic is simple: a bigger, more modern hub can support more flights, smoother connections, and expanded cargo operations — all while reducing bottlenecks at the current airport. For travellers, the longer-term promise is improved capacity and (eventually) more choices for routes and schedules across Africa and beyond.

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