KEYIR NEWS - The Government of Ethiopia is seeking expanded financial cooperation with the Arab Bank for Economic Development in Africa (BADEA) to fund major infrastructure projects, including the construction of a mega international airport and the Koisha renewable energy project.
The initiative was formally presented during high-level discussions held in Addis Ababa between Ethiopia’s Finance Minister, Ahmed Shide, and the newly appointed President of BADEA, Abdullah Almusaabeh, who is currently on an official visit to Ethiopia.
According to the Ministry of Finance, the meeting underscored Ethiopia’s commitment to accelerating its national development agenda by mobilising support for transformative infrastructure, energy, and industrial projects.
Minister Shide emphasised the strategic importance of both the new international airport and the Koisha hydro-solar hybrid power plant in advancing economic growth and regional integration.
In response, President Almusaabeh reaffirmed the bank’s strong interest in expanding its portfolio in Ethiopia and supporting sectors deemed critical for inclusive development.
“We are committed to strengthening our partnership with Ethiopia and scaling up investments in high-impact areas such as transport, energy, and industry,” Almusaabeh said during the meeting.
The request follows BADEA’s recent allocation of $49.6 million to Ethiopia for infrastructure development, including integrated agro-industrial parks, as well as the road and power sectors. That funding has already contributed to value chain expansion in rural economies and improved logistical access across industrial zones.
The proposed mega international airport, set to be constructed near Addis Ababa, is envisioned to relieve pressure on the overcrowded Bole International Airport and position Ethiopia as a premier aviation hub in Africa.
The facility is expected to accommodate tens of millions of passengers annually and serve as a strategic gateway for both regional and intercontinental air traffic.
Meanwhile, the Koisha renewable energy project, a flagship initiative under Ethiopia’s Climate-Resilient Green Economy Strategy, aims to generate over 1,000 megawatts through an integrated hydro-solar hybrid system in southern Ethiopia.
The project is part of the government’s broader efforts to diversify the energy mix, reduce emissions, and meet growing domestic and industrial demand.
Analysts view Ethiopia’s outreach to BADEA as part of a diversified financing approach that includes Arab and non-Western partners in light of global economic shifts. With an ambitious 10-year development plan underway, Ethiopia continues to court concessional financing to reduce dependency on domestic public borrowing.
The Ministry of Finance stated that further technical discussions will follow in the coming months to align project feasibility assessments with BADEA’s funding criteria.
As Ethiopia advances its infrastructure modernisation and green energy transition, partnerships like this are seen as critical for unlocking growth, attracting investment, and supporting long-term resilience.