IFC Funds $80M Sheraton Addis Expansion, Creates 9,400 Jobs in Ethiopia

The International Finance Corporation (IFC) announced an $80 million long-term loan to MIDROC Ethiopia PLC on June 15 to expand premium hospitality capacity in Addis Ababa. The investment funds the refurbishment of the Sheraton Addis and development of a new Sheraton hotel. The project is expected to create over 9,400 direct and indirect jobs and strengthen Ethiopia’s tourism economy, which currently accounts for 10% of GDP and 3.5 million jobs.

Why Ethiopia’s Tourism Sector Matters

Travel and tourism contribute approximately 10% of Ethiopia’s GDP and support 3.5 million direct and indirect jobs across the economy. An estimated 2 million people join the workforce each year, making job creation essential for economic stability. The sector generates foreign exchange and strengthens local economic activity through business and leisure travel.

The Sheraton Project Details

IFC is providing an $80 million long-term loan to MIDROC Ethiopia PLC (MEP), the hospitality arm of MIDROC Investment Group. The funds support refurbishment of the iconic Sheraton Addis and development of a new adjacent Sheraton hotel in Addis Ababa. The total project value reaches up to $116 million and will introduce Ethiopia’s first green-certified hotels.

Job Creation and Economic Impact

The project is expected to generate over 9,400 direct and indirect jobs, creating employment opportunities for young people and women. The partnership aligns with World Bank Group strategies to support Ethiopia’s economic growth and gender equality through formal employment and workplace inclusivity. The expanded hospitality infrastructure will help Addis Ababa host major international events, including the UN Climate Change Conference (COP32) in November 2027.

Investor Confidence Returns

The investment signals renewed investor confidence in Ethiopia’s hospitality sector. MIDROC Investment Group, backed by billionaire Mohammed Al-Amoudi, is one of Ethiopia’s largest private sector conglomerates. The IFC partnership extends across agribusiness, manufacturing, and healthcare, supporting long-term economic diversification and job creation.

Final Thoughts

The $80 million IFC investment demonstrates renewed confidence in Ethiopia’s tourism economy and signals that hospitality is emerging as a strategic growth engine. With 9,400 jobs expected and green-certified hotels planned, the project strengthens Ethiopia’s regional competitiveness.

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