Ethiopia is employing a Wall Street-inspired financing model for the Bishoftu Airport project amid discussions at the African Union Summit. Ethiopian Airlines has contributed 700 million dollars as initial investment toward the 12.5 billion dollar venture. A special-purpose company will oversee borrowing, with financiers choosing contractors.
The Bishoftu Airport, a new aviation hub under construction southeast of Addis Ababa, is being developed on an innovative financial basis. Rather than the government engaging a single turnkey contractor and assuming the debt, financiers will appoint their own contractors, and a special-purpose company will handle billions of dollars in loans.
At the 39th African Union Summit, AU Commission Chairperson Moussa Faki Mahamat urged member states to issue green bonds to mitigate aviation sector climate change impacts. He commended Ethiopia's success in registering green shares for the aviation transition and noted Prime Minister Abiy Ahmed's commitment as practically visible, with Addis Ababa set to demonstrate the results.
Finance Minister Ahmed Shide held sideline meetings at the summit with leaders from the African Development Bank, the International Fund for Agricultural Development (IFAD), and the Arab Bank for Economic Development in Africa (BADEA). Discussions covered Ethiopia's reform agenda, priority investments, and efforts to sustain aviation transition momentum, including financing options for the Bishoftu international airport and the Koisha hydropower plant projects. The African Development Bank reaffirmed its commitment to expanding Ethiopia's energy development and strengthening private sector engagement. Ethiopia has endorsed the second African Aviation Summit as a reference document for its agenda.
