A Chinese bank has agreed to provide $500 million towards the construction of Ethiopia’s new international airport in Bishoftu, a major infrastructure project valued at around $10 billion. The commitment marks one of the most significant external financing pledges to date for the scheme, which is being advanced by Ethiopian Airlines Group.
Ethiopian Airlines Group CEO Mesfin Tasew Bekele confirmed the latest financing development but did not identify the lending institution. He described the commitment as a meaningful step for the programme, which will rely on a combination of debt and equity. The project has already secured $500 million from the African Development Bank (AfDB), with Mesfin saying the airline is reaching out to a wide range of global financiers.
“During the last one year, we had a lot of activities to market this project to many lenders. There is one Bank from China which has promised to invest in this project and has promised to contribute $500million,” he said during the Africa Investment Forum in Rabat, Morocco. “There are other bankers who have pledged to invest in this project,” he said. “We have dedicated the AfDB to be the leader in this process. We are engaging a lot of financial institutions… in all parts of the world: Middle East, China, India, Europe, and North America.”
The overall investment requirement is now estimated at $12.5 billion, taking into account land acquisition, resettlement, and other financing-related costs. Based on current projections, the amount still to be funded by the private sector could reach as much as $8 billion.
Mesfin described the response from prospective lenders as “very, very positive”, pointing to outreach efforts in the United States, the European Union, and the Middle East. He linked the development of the airport to wider ambitions under the African Continental Free Trade Area (AfCFTA), particularly plans to strengthen intra-African connectivity.
“As you know Africa would like to develop by integrating activities with the AfCFTA. This initiative requires movement of people in Africa. The means of movement in Africa, the best option is the air transport,” he said.
The new airport site, located roughly 40 kilometres southwest of Addis Ababa, is intended to relieve congestion at Addis Ababa Bole International Airport, which has faced growing capacity pressures due to rising passenger numbers. Designed to handle 110 million passengers a year once fully completed, the Bishoftu facility is expected to become the largest airport on the continent. Its scale and strategic position have drawn interest from lenders in the US, EU, and China.
The airline has not provided detailed updates on its most recent funding discussions in Paris, but its continued engagement at the Africa Investment Forum suggests efforts are ongoing to broaden the mix of international investors. The Chinese commitment adds a competitive element, with US and European entities also signalling interest. In September, the US government said it would support the development of the new airport, presenting what it described as President Donald Trump’s first major business initiative in Ethiopia.
Construction will proceed in phases, with each stage aligned to projected demand and operational needs. The first phase is scheduled for completion by 2030 and is expected to accommodate up to 60 million passengers annually.
