ADDIS ABABA (BG) — Ethiopia has announced plans to build Africa’s largest airport, aiming to accommodate the country’s growing passenger and cargo demands.

On Friday, March 14, the African Development Bank (AfDB) signed a letter of intent with Ethiopian Airlines Group, formalizing a partnership to construct the new Bishoftu International Airport.

The airport will be built in Bishoftu, a city about 40 kilometers (25 miles) south of the capital, Addis Ababa.

According to Ethiopia’s Ministry of Finance, the new international hub is expected to meet increasing demand for passenger and freight services.

Addis Ababa Bole International Airport, the country’s current main hub, is projected to reach its maximum capacity at the current passenger growth rate.

The future airport, expected to be completed by 2029, will feature four runways and parking space for 270 aircraft, local media reported.

It will have an initial capacity of 60 million passengers per year, with plans to expand to 100 million—far surpassing Bole International Airport’s current capacity of 17 million.

African flagship project.

Ethiopia’s Finance Ministry said the project will drive economic development and enhance Africa’s global air connectivity, further strengthening Ethiopian Airlines’ position as the continent’s leading airline group.

The Finance Ministry did not specify how much of the project’s estimated $7.8 billion cost will be covered by the AfDB.

In addition to the airport partnership, Finance Minister Ahmed Shide requested AfDB’s support for Ethiopia’s macroeconomic reform agenda and transformational projects linked to regional integration and renewable energy.

AfDB President Dr. Akinwumi Adesina expressed the bank’s full commitment to supporting the new airport project, which he referred to as an “African flagship project.”

He also praised Ethiopia’s 8.1% GDP growth over the past year and commended Addis Ababa’s rapid transformation under Prime Minister Abiy Ahmed.