Ethiopia’s $12.5 billion airport could give SMEs more room to grow

When a country spends $12.5 billion on an airport, most of the attention goes to the companies building it. Ethiopia’s Bishoftu International Airport is attracting some of the biggest construction companies from China, Europe, the Middle East, Türkiye, India and Russia. But there is another part of the project that is easier to overlook. The smaller businesses that will supply those companies. The airport is being built about 45km southeast of Addis Ababa. Ethiopian Airlines expects the first phase to handle 60 million passengers a year, with the full airport eventually reaching 110 million passengers. Construction started in January, with the first phase expected to be completed in 2030. The main contracts have not been awarded yet. Ethiopian Airlines has shortlisted 33 bidders across four major packages, with Chinese companies accounting for 15 of those positions, either alone or through joint ventures. The contractor selection process has now moved to January 2027. That leaves businesses with some time to see where they could fit.

The airport will need a lot of ordinary businesses

Building an airport of this size involves more than cranes and construction crews. Workers need meals. Equipment needs fuel and repairs. Materials need to be delivered. Vehicles need servicing. Construction sites need security and cleaning. People working on the project need places to stay. Those are all services that smaller companies can provide. A transport business does not need to build a runway to benefit from the project. A catering company does not need to win the airport contract. It could supply one of the companies building it.That is probably where the more realistic opportunity sits for many SMEs.

There is a catch. Large construction companies often arrive with suppliers they already know. Some will bring specialist equipment and services from their own markets. Others may look for local suppliers because they are cheaper, easier to access or better suited to the local market. That means SMEs will have to compete. A small transport company with three trucks may struggle if a contractor needs 20. A supplier may have the right products but not enough money to carry a large order while waiting for payment. This is where the size of the project can work against smaller companies. The demand may be there, but the business still needs to be able to handle it.

The bigger opportunity could come after construction

The airport is expected to become a major passenger and cargo hub. That creates another market once construction is finished. Hotels could get more business. Taxi and transport operators could carry passengers and airport staff. Restaurants and retailers could serve people passing through. Freight companies could move cargo. Warehouses could open nearby. Technology and maintenance companies could provide services to businesses operating around the airport. That market could last much longer than the construction period.

There is something for South African SMEs to watch

The airport is in Ethiopia, but South African businesses should not ignore it. Ethiopian Airlines already has a large network across Africa. A bigger airport gives the airline more room to move passengers and cargo through Ethiopia. That could affect businesses involved in logistics, tourism, technology and professional services. A South African company that already works across the continent could potentially find a reason to enter the Ethiopian market. But it needs to understand the costs first. Taxes, local regulations, procurement rules, transport and payment terms can all change whether a contract is worth taking. For a small business, getting the contract is only half the job. Making money from it is the other half.

The large Chinese presence on the shortlist is also worth watching. Chinese companies account for 15 of the 33 shortlisted positions across the four main construction packages. The US is also pushing for American companies to take part in the project. For SMEs, the important part is not necessarily the competition between China and the US. It is who eventually wins the contracts. Those companies will decide what they buy locally, which suppliers they use and how much work they subcontract. That could determine where smaller businesses get their chance.

SMEs should not wait for the airport to open

A business interested in the project can start looking at the shortlisted contractors now. A transport company can work out what it can realistically supply. A catering business can look at the number of workers a contractor may have on site. A construction supplier can identify which companies might need its products. A technology company can look beyond construction and consider what businesses around the airport may need once it opens. There is no guarantee that these businesses will win work. But they do not need to win a billion dollar contract. They may only need to win a contract worth enough to make a difference to their own business. That is the part of Ethiopia’s $12.5 billion airport project that SMEs should be watching. The headline number belongs to the big contractors. Some of the spending underneath it could belong to smaller businesses.