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AfDB, Ethiopian Airlines commit to $7.8bn Abusera International mega airport project
The African Development Bank (AfDB) and Ethiopian Airlines Group have declared their commitment to the development of a new mega airport with the signing of a letter of intent (LOI). The $7.8bn Abusera International Airport Project aims to address increasing passenger and cargo demands, reinforce Ethiopia’s position as a leading aviation hub, and stimulate regional economic growth.
Ethiopian Airlines Group CFO Mensfin Tasew (left) and AfDB Vice President Nnenna Nwabufo display copies of the signed letter of intent. Standing behind them are Ethiopia’s Finance Minister Ahmed Shide (left) and Bank Group President Dr. Akinwumi Adesina (in bow tie)
Chief executive officer of Ethiopian Airlines Group Mesfin Tasew Bekele signed the LOI with African Development Bank Vice President for Regional Development, Integration and Business Delivery, Nnenna Nwabufo, at the Bank’s headquarters in Abidjan on Friday, 14 March.
Bekele was part of the Ethiopian delegation led by Finance Minister Ahmed Shide. Other members were Adamu Tadele, CFO for Ethiopian Airlines Group; Tiguist Fisseha, senior advisor to the Finance Minister; Abraham Tesfaye, infrastructure director for Ethiopian Airlines Group; and Berhanu Anbessa, head of IFIs at the Ethiopian Ministry of Finance.
The new world-class international airport will be situated in Bishoftu, about 40km from the current Addis-Ababa Bole International Airport.
Multinational transportation is key to improving interconnectedness and free movement between countries and contributes to regional integration, one of the Bank’s High Five priorities.
The new Abusera International Airport will complement Ethiopia’s recently expanded Bole International Airport, which is expected to reach its annual 25 million passenger capacity limit soon. The new infrastructure will enhance Ethiopian Airlines’ role in improving intra-Africa connectivity by enabling a more extensive and efficient network, and strengthening connectivity between Africa and the rest of the world.
“[The] signing of the letter of intent for the new mega airport development project is yet another testament to AfDB’s commitment to supporting Ethiopia’s ambitious flagship air transport project that will not only reinforce Ethiopian Airlines’ competitive edge in passenger and cargo services, but also enhance Africa’s global air connectivity and integration, solidifying the continent’s aviation hub status,” said Finance Minister Shide.
In the last fiscal year, ending on 30 June 2024, Ethiopian Airlines reported record revenues of $7.02bn (over 402bn Ethiopian Birr), reflecting a 14% year-on-year increase. It transported 17.1 million passengers, with 13.4 million on international routes and 3.7 million domestically.
