Ethiopia begins work on $12.7bn Bishoftu hub: Africa's next aviation giant?

Ethiopia has formally launched construction on a massive new aviation project. Prime Minister Abiy Ahmed announced the start of work on Saturday. This new facility is the Bishoftu International Airport. It is located in Bishoftu, southeast of the capital Addis Ababa. The project is expected to cost about $12.7 billion. Officials expect the new hub to become Africa’s largest airport.

At full capacity, the airport will handle 110 million passengers annually. This capacity is more than four times the current main airport's limit. Construction is scheduled to span roughly five years. The new airport is slated for completion in 2030.

Strategic Vision for African Connectivity

The project is a key pillar of Ethiopia’s national strategy. It aims to strengthen Ethiopian Airlines’ global competitiveness. The national carrier is partly financing the massive development. The new hub will replace or complement Addis Ababa Bole Airport. Bole Airport currently handles up to 25 million passengers annually. It is reportedly nearing its maximum capacity.

Prime Minister Ahmed called it the largest aviation infrastructure project in African history. He stated this multi-airport strategy will future-proof Ethiopia’s role. Ethiopia is positioned as Africa’s leading air transport gateway. This project will enhance African connectivity and expand trade. It will also boost tourism corridors across the continent.

Project Scale and Financing

The Bishoftu airport will sit on a 35 square kilometer site. Planned specifications include four parallel runways. It will also offer parking space for up to 270 aircraft.

Financing is a major international effort.

• Ethiopian Airlines plans to fund 30% of the project.
• The African Development Bank committed $500 million.
• AfDB is leading efforts to raise an additional $8.7 billion.
• Authorities are in talks with the Asian Development Bank.
• Discussions also include the European Investment Bank.
• The US Development Finance Corporation is another potential financier.

The project also includes critical supporting infrastructure. A multi-lane motorway will link the new hub to the capital. A 38-kilometer high-speed railway is also planned. This railway is expected to reach speeds of 124 mph (200 kph).

Industry Impact and Challenges

This investment highlights the growth of African aviation. It addresses the continent's major infrastructure gap. According to the IATA, global air traffic demand continues to rise. Mega-hubs are essential for intercontinental transit traffic.

The project faces significant challenges.

• The site required the displacement of 2,500 farmers.
• Resettlement costs were reported at $350 million.
• Ethiopia also faces ongoing armed conflict in some regions.
• Bishoftu is located in the Oromia region, which has seen unrest.

Despite these challenges, the government sees the airport as vital. It is a long-term investment for economic recovery and growth. This development is a major story in commercial aviation news. [https://flying.flights]