Business
Ethiopia to Build Africa’s Largest Airport in $12.5Bn Bet on Air Travel Boom
Ethiopia has commenced construction of what is set to become Africa’s largest airport, a $12.5 billion aviation hub expected to significantly reshape air travel across the continent.
The new Bishoftu International Airport, located about 30 miles south-east of Addis Ababa, is projected to open in 2030 with an initial capacity of 60 million passengers annually, with plans to expand to 110 million passengers, potentially surpassing some of the world’s busiest airports.
Prime Minister Abiy Ahmed Ali described the development as the largest aviation infrastructure project in Africa’s history, underscoring its strategic importance to the country’s long-term economic ambitions.
The project is being led by Ethiopian Airlines, Africa’s biggest airline by fleet size, passenger traffic and revenue.
The airline’s Chief Executive Officer, Mesfin Tasew, said it plans to finance about 30 percent of the project directly, while efforts are ongoing to secure the remaining $8 billion through international partners, including discussions involving the United States, China and Italy.
The airport is designed to position Addis Ababa as a dominant aviation hub in Africa, addressing capacity constraints at the existing Bole International Airport and strengthening the continent’s intra-regional connectivity.
Currently, many travellers moving between African cities are compelled to transit through global hubs such as London, Paris and Dubai due to limited direct connections.
Industry analysts say the new airport could play a key role in supporting the African Continental Free Trade Area by boosting cargo handling capacity, with projections of up to 3.73 million tonnes annually.
The project also aligns with broader efforts to deepen integration under the Single African Air Transport Market, which seeks to liberalise air travel across participating countries.
Experts, however, caution that the success of the project will depend not only on the airport itself but also on supporting infrastructure, including roads, rail links, power supply and efficient customs systems.
The terminal is being designed by Zaha Hadid Architects, known for major global airport projects, with a concept inspired by Ethiopia’s Great Rift Valley and featuring environmentally conscious elements such as solar energy systems and water management infrastructure.
Despite its scale and potential economic benefits, the project has drawn criticism over its social impact. Reports indicate that more than 15,000 people have been displaced from agricultural land to make way for the development.
Ethiopian Airlines has stated it is investing $350 million in resettlement efforts, including housing and basic amenities, although some affected residents have reportedly disputed the adequacy of compensation.
The development comes amid growing competition among African countries to expand aviation infrastructure, with projects underway in Rwanda, Morocco, Egypt and Kenya.
