Addis Ababa — Ethiopia's planned US$12.5 billion Bishoftu International Airport has emerged as a new arena for competition between Chinese and US companies, with Beijing-backed firms leading the bidding for major construction works while Washington seeks a role in supplying aircraft technology and airport equipment.
The project, being developed by Ethiopian Airlines about 40km southeast of Addis Ababa, is intended to become the airline's primary hub and help ease capacity constraints at the congested Bole International Airport.
According to a report by the South China Morning Post (SCMP), Chinese state-owned enterprises and joint ventures account for roughly half of the companies shortlisted for the project's major construction contracts. Among them are China Civil Engineering Construction Corporation and China Road and Bridge Corporation, two firms with extensive experience in Ethiopia's infrastructure sector.
While major US construction companies were not included on the shortlist for civil works, Washington is seeking opportunities for American companies in future technology, aviation and equipment contracts.
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Mark Mitchell, US deputy assistant secretary of commerce for the Middle East and Africa, said Washington was "closely engaged in pushing to secure strong United States participation" in the project. He cited the longstanding partnership between Boeing and Ethiopian Airlines as an example of US-Ethiopian commercial ties.
Ethiopian culture magazine The competition reflects the growing strategic importance of major infrastructure projects in the Horn of Africa. Costantinos Berhutesfa Costantinos, a professor of public policy at Addis Ababa University and former UN policy adviser, told SCMP that transport infrastructure had become another area of US-China competition.
He said the airport would require substantial investment in air traffic control, surveillance, data systems and aircraft-related technologies, creating opportunities for companies from both countries to establish long-term commercial relationships.
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Ethiopian Airlines is expected to finance 20% to 30% of the airport project from its balance sheet and operating revenues, while the remainder will come from international lenders.
Addis Ababa guide The African Development Bank has committed US$500 million and is leading efforts to mobilise additional financing. Following financing roadshows in Washington, the US International Development Finance Corporation, US Export-Import Bank and JPMorgan Chase have also expressed interest in supporting the project.
Balancing partners
Meanwhile, Ethiopian Airlines CEO Mesfin Tasew said in November last year that a China-based financial institution had pledged US$500 million for the project. The lender was not identified.
An Ethiopian delegation also held discussions with the Bank of China in March as Addis Ababa continued efforts to secure financing. Final lender approvals are expected by March 2027, according to SCMP.
The Ethiopian government officially broke ground on the airport project in January. Earthworks valued at about US$610 million are expected to be completed by the end of this year.
The airport is designed to accommodate up to 60 million passengers annually by 2030 during its first phase. Once fully completed, the hub is expected to handle up to 110 million passengers and nearly 4 million tonnes of cargo annually.
W. Gyude Moore, a distinguished fellow at the Energy for Growth Hub and former Liberian public works minister, said US President Donald Trump's administration was prioritising commercial deals and private investment in Africa, making a project of Bishoftu airport's scale an important opportunity for American companies.
However, Moore said US firms could face difficulty competing with Chinese companies on price, citing intense competition among Chinese contractors and their willingness to compete aggressively for major overseas projects.
David Shinn, a China-Africa specialist and former US ambassador to Ethiopia, said American companies had historically played a role in Ethiopia's aviation sector but had become less visible in large African infrastructure projects as Chinese state-owned enterprises expanded their presence.
Shinn said the airport offered the Trump administration an opportunity to re-establish US commercial involvement in major African infrastructure projects, while noting that American companies would ultimately need to submit bids attractive to Ethiopia.
Costantinos said Ethiopia was likely to continue balancing its economic relationship with China with strategic, financial and security partnerships involving Western countries, Gulf states and international development institutions.
He suggested that Addis Ababa could divide the airport project into separate packages, with Chinese companies potentially competing strongly for civil engineering and heavy construction works, while Western and Gulf partners could have opportunities in areas such as avionics, airport security and digital infrastructure.
The approach, he said, could allow Ethiopia to avoid becoming overly dependent on either Washington or Beijing while using competition among international partners to secure better financing, technology and commercial terms.
Ethiopian culture magazine Ethiopian Airlines' existing mixed-fleet strategy, which includes both Boeing and Airbus aircraft, similarly reflects the carrier's effort to maintain diversified international partnerships.
The Bishoftu project is therefore poised to become not only a major expansion of Ethiopia's aviation infrastructure but also a significant test of Addis Ababa's strategy of balancing competing global economic powers.
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Interest and controversy
Since it was launched the mega airport project has also drawn controversy. Residents from Abu Lugna, one of the areas affected by the airport development, previously told Addis Standard they had been displaced without receiving compensation or replacement housing.
The Bishoftu City Administration denied the allegations. Communications head Ibrahim Hussein previously told Addis Standard the airport construction process was conducted carefully and that no formal complaints had reached his office.
Shortly after the groundbreaking ceremony in January, the Oromo Liberation Front (OLF) accused the government of carrying out "forced displacement," alleging thousands of residents were being uprooted and demanding ownership stakes for affected farmers.
In response, Ethiopian Airlines said in February 2026 that it had completed and handed over standard housing to displaced farmers and introduced livelihood support, including employment opportunities. However, some residents in Abu Lugna, one of the affected communities, previously told Addis Standard they had neither received compensation nor adequate resettlement support.
Addis Ababa guide Since then, interest in the project has continued to expand internationally. In May 2026, Bloomberg reported that the influential Syrian-Qatari Al-Khayyat business family, through UCC Holding, was among firms pursuing opportunities related to the airport development.
