Ethiopia $12.5bn Bishoftu International Airport is emerging as a new arena for US-China commercial competition, with Chinese contractors heavily represented in major construction bids while Washington pushes American companies towards aviation technology, equipment, aircraft and financing opportunities.
The emerging procurement structure is more complex than a straightforward battle between Beijing and Washington. Chinese groups have established a strong position in civil engineering, while US interests are concentrated elsewhere, potentially giving Ethiopia greater room to spread contracts, technology and financing among competing international partners.
Chinese groups crowd works shortlist
Chinese state-owned companies and joint ventures feature prominently across the four main construction packages shortlisted by Ethiopian Airlines for the new airport, about 40km southeast of Addis Ababa.
The list includes China Communications Construction Company, China Road and Bridge Corporation, China Civil Engineering Construction Corporation, China Construction Eighth Engineering Division and Beijing Urban Construction Group.
They are competing across packages covering the passenger terminal and concourses, support facilities, airfield infrastructure and off-site road and rail connections.
Chinese-linked bidders account for roughly half of the shortlisted companies, according to the South China Morning Post, underlining Beijing’s longstanding advantage in large African infrastructure projects.
But the civil-works race is not exclusively Chinese.
US-based Lane Construction Corporation appears in joint ventures led by Italy’s Webuild Group for three of the four main packages, alongside competitors from Turkey, Qatar, South Korea, India and Europe.
That wider field makes the project less a binary US-China contest than a global competition in which Chinese firms currently have the deepest representation.
Africa Briefing has previously examined how China has built a powerful investment position in Ethiopia, particularly across infrastructure and industrial development.
Washington eyes aviation prize
Washington’s strategy appears to be centred less on pouring concrete and more on capturing high-value parts of the airport’s wider aviation ecosystem.
Mark Mitchell, US deputy assistant secretary of commerce for the Middle East and Africa, has said Washington is ‘closely engaged’ in efforts to secure strong American participation in Bishoftu.
Reuters reported that Mitchell pointed to Ethiopian Airlines’ longstanding relationship with Boeing as one avenue for deeper commercial engagement, alongside opportunities involving GE Aerospace engines and other US technology.
A modern airport designed eventually to serve more than 100 million passengers will require far more than terminals and runways.
Air-traffic control systems, surveillance equipment, digital networks, security technology, baggage handling systems, aircraft, engines and other specialised equipment could generate lucrative long-term contracts for suppliers that secure positions early.
Truthng reported in July on Washington’s push for a role in Ethiopia’s $12.5bn airport as the Trump administration increasingly emphasises trade, investment and commercial deals in its Africa strategy.
Finance adds another layer
Financing could become just as important as construction in determining which international partners gain influence around Bishoftu.
Ethiopian Airlines plans to finance 30 percent of the project, with international lenders expected to provide the remainder.
The AfDB has committed $500m and is leading efforts to mobilise billions more for the project.
US institutions including the International Development Finance Corporation and Export-Import Bank have also shown interest following financing discussions in Washington.
Chinese financial institutions are in the picture too. Ethiopian officials have held talks with the Bank of China, while Ethiopian Airlines chief executive Mesfin Tasew said a China-based financial institution had pledged $500m, although the lender was not publicly identified.
Interest has widened further to the Gulf, with Qatar-linked UCC Holding among businesses pursuing opportunities associated with the project.
Taken together, that spread of financing and procurement interest could give Ethiopia greater bargaining room when negotiating commercial terms, technology transfer and funding conditions.
