The African Development Bank (AfDB) said on Monday it will contribute $500 million to the construction of an airport near the Ethiopian capital expected to become the continent's largest.

The massive travel hub in Bishoftu, roughly 45 kilometres (28 miles) south of the capital Addis Ababa, will cost an estimated $10 billion and be able to handle some 110 million passengers a year at full capacity, the AfDB said.

Egypt's Cairo International Airport took the title of Africa's busiest in 2024, followed by Johannesburg's O.R. Tambo in South Africa, according to the Official Aviation Guide.

Partly financed by national carrier Ethiopian Airlines, the Bishoftu hub is expected to replace the capital's Bole Airport, which can handle up to 25 million passengers annually.

'Transformational project'

Construction is scheduled to begin at the end of 2025.

"The Bank has itself earmarked up to $500 million, subject to Board approval, to anchor the funding," the AfDB said.

In a statement, it described the airport as a "transformational regional integration project" that would enhance "continental integration and connectivity."

State-owned Ethiopian Airlines is Africa's largest airline, with revenues of $7.6 billion for the 2024/25 fiscal year.

AfDB's support for Africa

Founded in 1964, the AfDB is one of the world's largest multilateral development banks.

It is funded by member subscriptions, loans raised on global markets as well as repayments and income from loans.