Infrastructure

Ethiopia Now Bets $30bn on Nuclear Plant, Mega-Airport

The Russia-backed nuclear project will feature two 1,200MW units.

Updated on

September 19, 2025

Ethiopia Prime Minister Abiy Ahmed — Ethiopia’s Prime Minister Abiy Ahmed. (Photo: Courtesy)

Ethiopia has launched a sweeping $30 billion infrastructure drive, headlined by a nuclear power plant and a new mega-airport set to rival the continent’s largest hubs.

Prime Minister Abiy Ahmed announced the plans during the inauguration of the Grand Ethiopian Renaissance Dam (GERD) on September 9, declaring that the nuclear plant would be “equal to the GERD” in scale and significance.

Construction is expected to begin within a month.

The nuclear project, developed in cooperation with Russia and backed by the International Atomic Energy Agency, will feature two 1,200MW units, scheduled to come online between 2032 and 2034. Small modular reactors are also under review.

The plant will provide Ethiopia with a stable source of baseload power, crucial for a nation of more than 120 million people where electricity demand is growing by about 20 per cent annually.

The hydro-heavy system, which currently produces around 5 GW, has been repeatedly disrupted by droughts. “The government of Ethiopia decided to go for nuclear energy,” Abiy said, stressing the need to diversify beyond hydropower.

Africa’s largest airport

Alongside nuclear power, Ethiopia is proceeding with plans for Africa’s largest aviation hub.

The new airport, built for Ethiopian Airlines, will initially be capable of handling 60 million passengers a year. According to Abiy, the project is central to restoring the country’s position as a leader in continental aviation and logistics.

The prime minister also revealed progress in energy diversification. Ethiopia’s first gas factory is set to open within weeks, with a second plant — more than ten times larger — about to break ground. An oil refinery is also scheduled to begin operations soon.

“This will turn our long-held dream of extracting oil into reality,” Abiy said.

The projects highlight Ethiopia’s push for a stronger, more diverse economy, with officials saying new energy sources will ease reliance on hydropower and meet rising demand.

As Abiy put it, the nuclear plant will stand “equal to the GERD” – a statement underlining the scale of Ethiopia’s ambitions as it commits to one of the most extensive infrastructure programmes in its modern history.