The International Finance Corporation (IFC) has announced a new partnership with MIDROC Ethiopia PLC (MEP), the hospitality arm of MIDROC Investment Group (MIG), to expand premium hospitality infrastructure in Ethiopia, with a focus on job creation and tourism development.
Under the agreement, IFC will provide an $80 million long-term loan to finance the refurbishment of the Sheraton Addis, part of the Luxury Collection, and the development of a new Sheraton hotel in the capital.
The project is expected to generate more than 9,400 direct and indirect jobs while strengthening Ethiopia’s tourism ecosystem and expanding formal employment opportunities, particularly for youth and women.
“Tourism is a powerful engine for jobs and revenue, creating pathways to work and enterprise across the economy,” said Ethiopis Tafara, IFC Regional Vice President for Africa. “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.”
Ethiopia’s travel and tourism sector currently accounts for about 10 percent of gross domestic product and supports an estimated 3.5 million jobs. With roughly two million people entering the labor market each year, job creation remains a pressing priority.
MIDROC Investment Group CEO Jemal Ahmed Abdu said the partnership carries significant strategic importance for the conglomerate and the broader economy.
“This collaboration will play a pivotal role in modernizing the domestic hospitality sector while delivering sustained and meaningful impact on job creation in Ethiopia,” he said.
Beyond expanding accommodation capacity, the project is expected to help Ethiopia prepare for major international events, including the United Nations Climate Change Conference scheduled for November 2027. It will also introduce the country’s first green-certified hotels, marking a step forward for sustainable building practices in a still-developing ecosystem.
The initiative aligns with the World Bank Group’s Country Partnership Framework for Ethiopia, which identifies tourism as a key driver of economic growth, as well as its Gender Strategy aimed at promoting inclusive and equitable employment.
The investment further underscores a deepening collaboration between IFC and MIDROC across sectors such as agribusiness, manufacturing, and healthcare, reflecting broader efforts to support diversification, value addition, and private sector-led development in Ethiopia.
