The United States has announced support for the development of a new US$10 billion international airport in Ethiopia, Bishoftu International Airport, as the country seeks to strengthen its position as an aviation hub in Africa.

The African Development Bank (AfDB) has been named lead arranger and global coordinator for the project, with plans to mobilise nearly US$7.8 billion in funding. AfDB itself has committed US$500 million, pending board approval.

Ethiopian Airlines will contribute 20% of the total cost, aligning its expansion plans with the airport’s development.

Construction is slated to begin in late 2025, with Phase 1 expected by November 2029. The site is about 40-45 kilometres south of Addis Ababa, in Bishoftu.

READ MORE: AFDB and Ethiopia Sign Letter of Intent for $7.8 Billion Airport Project

Phase 1 will have capacity for 60 million passengers annually, with further expansion to 100 million+ passengers and cargo handling capacity of 3.73 million tonnes per year.

The new airport aims to ease pressure on Addis Ababa’s Bole International Airport and support Ethiopia’s plans for connectivity and regional integration. An “airport city” component will include hotels, retail, recreation zones, and expressway/rail links to Addis Ababa.

U.S. Senior Advisor for Africa, Massad Boulos, confirmed U.S. involvement and said that Washington will work through its International Development Finance Corporation (DFC) and build on partnerships with Ethiopian Airlines.