ADDIS ABABA — The International Finance Corporation (IFC) has officially finalized an $80 million long-term loan to MIDROC Ethiopia PLC. The major funding package will bankroll both a comprehensive refurbishment of the iconic Sheraton Addis and the construction of a brand-new, Sheraton-branded hotel in the capital city.
The deal—which formalizes a proposal first revealed in January—stands as one of the largest recent injections of capital into Ethiopia’s hospitality industry. According to project estimates, the massive dual development is expected to support over 9,400 direct and indirect jobs, with a particular focus on employment for women and youth.
Beyond expanding premium lodging capacity, the project marks a significant milestone for sustainable development. The IFC noted that the upgrades and new build will introduce Ethiopia’s very first green-certified hotels, aligning the properties with modern, eco-friendly building standards.
“This partnership demonstrates how private-sector investment can expand quality hospitality infrastructure while generating vital economic opportunities,” said Ethiopis Tafara, IFC Regional Vice President for Africa.
With travel and tourism currently making up roughly 10% of Ethiopia’s GDP, boosting high-end hospitality infrastructure is seen as a crucial step for the country to host major international events. Most notably, the city is preparing for a influx of global travelers ahead of the United Nations Climate Change Conference (COP) scheduled for 2027.
Jemal Ahmed Abdu, CEO of MIDROC Investment Group—Ethiopia’s largest private-sector conglomerate—emphasized that the strategic funding will modernize the local tourism sector and secure long-term job creation. The loan also highlights a deepening relationship between the IFC and MIDROC, who are actively collaborating across the manufacturing, healthcare, and agribusiness sectors to drive private-sector growth in the region.
