This article summarizes reporting by Reuters and Dawit Endeshaw.

Ethiopia Breaks Ground on $12.5 Billion Mega-Airport to Rival Global Hubs

Ethiopian Airlines has officially commenced construction on a massive new international airport in Bishoftu, a project valued at $12.5 billion. According to reporting by Reuters, the groundbreaking ceremony took place on Saturday, January 10, 2026, marking the start of an initiative designed to create Africa’s largest aviation hub by its scheduled completion in 2030.

The new facility, located approximately 40 to 45 kilometers southeast of the capital, Addis Ababa, is intended to replace the increasingly congested Bole International Airport. Officials state that the project is central to the airline’s “Vision 2035” strategy, which aims to dramatically expand the carrier’s capacity and global reach.

Project Scope and Design

The Bishoftu International Airport project, often referred to as a “Mega Airport City”, is set to be delivered in phases. Data regarding the project indicates that the first phase, targeted for completion in 2030, will establish a capacity of 60 million passengers annually. Upon full completion, the airport is projected to handle up to 110 million passengers per year, a figure that would position it as the largest on the continent.

The design and supervision of the 35-square-kilometer site are being led by a consortium headed by Sidara (formerly Dar Al-Handasah). This consortium includes prominent architectural firms such as Zaha Hadid Architects and Pascall+Watson. The master plan features four parallel runways and terminal facilities capable of accommodating the projected passenger volumes, alongside parking for 270 aircraft.

Infrastructure and Connectivity

To ensure efficient transit between the new hub and Addis Ababa, the development plan includes significant supporting infrastructure. Reports detail a dedicated 38-kilometer high-speed rail link designed for speeds up to 200 km/h (124 mph), as well as a new multi-lane expressway connecting the airport to the capital’s existing road network.

Funding and Financial Structure

The $12.5 billion price tag for the first phase is being met through a mixed financing model. According to project details, Ethiopian Airlines will contribute 30 percent of the total cost, amounting to approximately $3.75 billion. The remaining 70 percent is being secured through external debt financing.

The African Development Bank (AfDB) is serving as the lead arranger for the external funding. The bank has reportedly committed around $500 million and is working to mobilize the remaining capital from other international lenders. Interest has been noted from institutions including the Asian Development Bank, the European Investment Bank, and the US Development Finance Corporation.

Social Impact and Displacement

The scale of the project has necessitated significant land acquisition in the Oromia region. Reports indicate that approximately 2,500 farming households, potentially affecting up to 15,000 individuals, will be displaced to make way for the construction.

To address this, Ethiopian Airlines has allocated an estimated $350 million for compensation and resettlement programs. A new town featuring villas and community facilities is reportedly being developed for displaced residents. However, sources have noted local opposition regarding the adequacy of compensation and the loss of ancestral land.

Official Remarks

During the launch event, officials emphasized the strategic importance of the project. Prime Minister Abiy Ahmed described the initiative as a historic milestone for the continent.

“The largest aviation infrastructure project in Africa’s history… [it will] future-proof Ethiopia’s role as Africa’s leading air transport gateway.”

, Prime Minister Abiy Ahmed (via official remarks)

Ethiopian Airlines Group CEO Mesfin Tasew also highlighted the facility’s focus on modern standards, stating the airport would feature “cutting-edge technology, sustainable design, and unparalleled connectivity.”

AirPro News Analysis

The decision to build a greenfield airport in Bishoftu rather than expanding Bole International Airport reflects a critical strategic pivot. Bole, sitting at a high altitude of over 2,300 meters, imposes performance penalties on aircraft, often limiting takeoff weights and range. The new site in Bishoftu, located at a lower altitude of approximately 1,900 meters, will mitigate these issues, allowing for more efficient long-haul operations.

Furthermore, the capacity leap to 110 million passengers places Ethiopian Airlines in direct competition with global super-connectors. By targeting a capacity that rivals Dubai (DXB) and Istanbul (IST), Ethiopia is signaling its intent to capture a larger share of the traffic flow between Africa, Asia, and the West, moving beyond regional dominance to become a primary global transit point.

Sources

• Reuters