A Chinese bank has pledged $500 million to finance the construction of Ethiopia’s multibillion dollar airport in Bishoftu near the capital Addis Ababa.

Ethiopian Airlines Group CEO Mesfin Tasew Bekele did not disclose the lender’s name, but confirmed the commitment as a significant step forward for the project, which has an estimated total cost of $10 billion, and is being financed through a combination of debt and equity.

The project spearheaded by Africa’s largest carrier, Ethiopian Airlines Group (EAG) has already raised $500 million from the African Development Bank (AfDB) as it actively seeks funds from various international partners and through self-financing to construct what is billed to be the largest airport in Africa.“During the last one year, we had a lot of activities to market this project to many lenders. There is one Bank from China which has promised to invest in this project and has promised to contribute $500million,” said Mr Mesfin said in Rabat, Morocco, on the sidelines of the Africa Investment Forum by the African Development Bank.“There are other bankers who have pledged to invest in this project,” the airline boss said. “We have dedicated the AfDB to be the leader in this process. We are engaging a lot of financial institutions... in all parts of the world: Middle East, China, India, Europe, and North America.”

The total investment cost for the new airport is estimated at $12.5 billion, including land acquisition, resettlement, and financing costs.

According to project estimates, the financing gap to be filled by the private sector could reach $8 billion.

Noting that the response from potential lenders has been "very, very positive" so far, Mr Mesfin noted that they have been to the US, European Union and to the Middle East seeking funding.

He said the move is well in line with the African Continental Free Trade Area (AfCFTA) plans to expand air transport on the continent.“As you know Africa would like to develop by integrating activities with the AfCFTA. This initiative requires movement of people in Africa. The means of movement in Africa, the best option is the air transport,” he said.

Located about 40 kilometers southwest of Addis Ababa, the new airport is designed to ease growing capacity constraints due to strong traffic at the existing Addis Ababa Bole International Airport and position Ethiopia as a key player in both regional and global aviation.

With an annual capacity of 110 million passengers, the airport aims to be Africa's largest, drawing interest from US, EU, and Chinese lenders

While management has not explicitly detailed the immediate financial outcomes of the Paris meetings, the continued engagement in Rabat suggests a broad push to diversify funding sources.

The entry of a Chinese investor signals a heating rivalry among international actors, with American entities expressing strong interest, alongside European investors.

In September, the US said it would support the construction of the new international airport, which would mark President Donald Trump’s first major business initiative in Ethiopia.

The project will adopt a phased approach, with infrastructure scaled in line with demand growth and operational requirements.

Phase one is expected to be completed by 2030 and will accommodate up to 60 million passengers annually.

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