MIDROC Ethiopia (MEP), the hospitality division of MIDROC Investment Group (MIG), has secured an $80m long-term loan from the International Finance Corporation (IFC) to support the expansion and refurbishment of hotel facilities in Addis Ababa, Ethiopia.
The financing will enable the renovation of the Sheraton Addis (Luxury Collection) hotel and the development of a new Sheraton property in the city.
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The initiative is projected to generate more than 9,400 direct and indirect jobs. Particular emphasis is placed on creating formal employment opportunities for women and young people within Ethiopia’s hospitality sector.
Both the World Bank Group’s Country Partnership Framework for Ethiopia, recently extended to 2026, and the Group’s Gender Strategy for 2024–2030 recognise tourism as a central part of the country’s economic growth and job creation.
According to the companies, the project aims to enhance Ethiopia’s accommodation infrastructure ahead of major international events, beginning with the United Nations Climate Change Conference scheduled for November 2027.
The new and refurbished hotels are expected to be the first green-certified hospitality properties in Ethiopia, reflecting a move towards environmentally sustainable building practices in a market where the green building sector is at an early stage of development.
Business and leisure tourism contributed 10% of Ethiopia’s gross domestic product, the companies stated, with around 3.5 million jobs linked directly and indirectly to the sector.
With an estimated two million people joining the country’s workforce each year, job creation remains a key priority.
MIG CEO Jemal Ahmed Abdu said: “We would like to express our strong appreciation for this partnership with IFC, which carries an immense strategic significance to MIG.
“This collaboration will play a pivotal role in modernising the domestic hospitality sector while delivering a sustained and meaningful impact on job creation in Ethiopia.”
IFC Africa regional vice-president Ethiopis Tafara said: “Tourism is a powerful engine for jobs and revenue, creating pathways to work and enterprise across the economy.
“Our partnership with MIDROC Ethiopia reflects how we work best — with strong partners on assets that anchor growth — expanding quality hospitality capacity while supporting thousands of jobs and advancing opportunity for young people and women.”
The announcement also marks another stage in the existing collaboration between IFC and MIG, which extends to agribusiness, manufacturing, and healthcare.
The World Bank Group’s involvement underscores its ongoing focus on economic diversification and increased formal employment in Ethiopia.
