Ethiopian Airlines Group has formalized a collaboration with the African Development Bank (AfDB) by signing a Letter of Intent (LoI) for the development of the Bishoftu International Airport.
This strategic partnership aims to enhance Ethiopia’s aviation infrastructure and strengthen its position as a leading African air transport hub.
According to ethiopianmonitor.com, the LOI was signed on Friday by Ethiopian Airlines Group CEO Mesfin Tasew and Vice President of the African Development Bank (AfDB) Nnenna Nwabufo, in the presence of Finance Minister Ahmed Shide and AfDB Group President Akinwumi Adesina.
The new international airport expansion project, spearheaded by the State-Owned Ethiopian Airlines Group, is expected to address the fast growing international and domestic demand for passenger and cargo service.
At the current pace of passenger growth, the national carrier’s hub in Addis Ababa, Bole International airport – is projected to reach its maximum capacity soon.
The new mega Airport, estimated to cost US$7.8 billion, will increase annual passenger capacity from 17 million to over 60 million by 2040.
This project will reinforce Ethiopian Airlines’ position as Africa’s leading aviation group and maintain the carrier’s competitive edge in passenger and cargo transport, aviation training, flight catering,
maintenance, and ground handling services, as well as supporting Ethiopia’s aspiration to become a major tourism destination, the MinFin says in a statement issued today.
The new international hub Airport will not only drive Ethiopia’s economic development but also enhance Africa’s global air connectivity and integration, solidifying the continent’s aviation hub status.
At the signing ceremony, Finance Minister Ahmed appreciated the Bank’s comprehensive support to Ethiopia’s development with more than USD 1.2 billion current portfolio investments in key sectors. The minister also extended his gratitude to President Adesina for his leadership and support to Ethiopia’s development in his ten-year tenure.
In addition to the partnership on the new Airport Project, the Minister requested the Bank’s support to the macroeconomic reform agenda as well as for transformational projects linked to regional integration and renewable energy, among others.
In his remarks, AfDB Group President Adesina referred to the Airport development project as an African flagship Project. He also expressed the Bank’s full commitment to support the development project while applauding the Government of Ethiopia’s 8.1% GDP growth recorded in the last year, as well as Addis Ababa’s fast transformation under the leadership of PM Abiy Ahmed, MinFin statement reads.
The two sides agreed to deepen the existing strong partnership through strategic and innovative engagements that benefit all Ethiopian and the region at large, the MinFin says.
