AfDB Drives Africa’s Growth with $8bn Ethiopian Mega Airport Deal, $850,000 Green Jobs Push

The African Development Bank (AfDB) is accelerating its twin priorities of transformative infrastructure and inclusive green growth, signing a landmark $8 billion financing mandate for Ethiopia’s Bishoftu International Airport while also launching an $850,000 initiative to create sustainable jobs in Ghana and Senegal.

Ethiopia’s Mega Aviation Hub

At a signing ceremony in Addis Ababa, AfDB President Dr. Akinwumi A. Adesina confirmed the Bank will act as Mandated Lead Arranger, Global Coordinator, and Book Runner for the debt package to build the $10 billion Bishoftu International Airport, set to be one of the largest in Africa. The Bank will also contribute up to $500 million from its own resources.

The new airport will be developed in two phases, with capacity to handle 60 million passengers annually at launch, rising to 110 million in phase two. It will also process 3.7 million tons of cargo, provide parking for 270 aircraft, and reduce Ethiopian Airlines’ fuel consumption by 15%.

Adesina praised the “vision, determination, and resolve” of Prime Minister Abiy Ahmed’s administration and commended Ethiopian Airlines, Africa’s largest and most awarded carrier, for its strong 2024 performance, with $7.2 billion in revenue (up 14% year-on-year) and a 24% rise in passenger numbers to 19 million.

The project will ease congestion at Addis Ababa’s Bole International Airport, which is near its 25 million annual passenger capacity, and support Ethiopian Airlines’ fleet expansion from 126 to 240 aircraft. The Ethiopian government has already relocated and compensated 2,800 households to clear the site.

“This project will position Ethiopia as a global aviation leader,” Adesina said, recalling AfDB’s earlier $160 million loan in 2016 for fleet modernization.

Green Jobs for Inclusive Growth

In parallel, the AfDB signed a new $850,000 grant agreement with Invest in Africa (IIA) for the MicroGREEN project in Ghana and Senegal. Funded through the Bank’s Fund for African Private Sector Assistance (FAPA), the two-year program aims to create up to 500 green jobs in agroforestry, fisheries, and biodiversity conservation, focusing on women, youth, and persons with disabilities.

The project will deliver tailored entrepreneurship training, business development services, and mentorship to integrate marginalized groups into sustainable value chains. It will also draw on an earlier $1 million grant from the Bank’s Youth Entrepreneurship and Innovation Multi-Donor Trust Fund.

“These sectors are central to climate-resilient employment, but women and youth remain underrepresented,” AfDB officials noted, stressing the importance of inclusive participation in Africa’s green economy.

Spotlight on the African Development Fund

The announcement came as the AfDB highlighted the wider impact of its concessional financing arm, the African Development Fund (ADF), which serves 37 low-income countries, nearly half in fragile situations. Since inception, the ADF has committed $45 billion to infrastructure, climate resilience, and regional integration projects.

Recent examples include Zambia’s $500 million Lobito Corridor, linking Angola, the DRC, and Zambia, and the $68 million Kazungula Bridge connecting Zambia and Botswana, both boosting trade, reducing transit times, and spurring investment.

The Fund is currently in its 17th replenishment cycle (ADF-17), with plans to expand donor partnerships, explore market borrowing, and enhance public awareness.