The International Finance Corporation has agreed to provide up to $80 million in financing to MIDROC Ethiopia Plc to support the refurbishment of the Sheraton Addis hotel and the construction of a new Sheraton-branded property in the Ethiopian capital. The financing will cover a substantial portion of the project's estimated $116 million cost, according to project documents released by IFC.
The investment comes as Ethiopia seeks to expand its hospitality infrastructure and tourism capacity ahead of the United Nations Climate Change Conference (COP32), scheduled to be held in Addis Ababa in 2027.
MIDROC Ethiopia Plc, the hospitality arm of MIDROC Investment Group, owns and operates the Sheraton Addis and is developing additional internationally branded hotel assets in the country. The company is owned by Saudi-Ethiopian billionaire Mohammed Hussein Ali Al-Amoudi, who holds a 75% stake, and Sofia Saleh Al-Amoudi, who owns the remaining 25%.
IFC said the funding would support the modernization of the Sheraton Addis, one of East Africa's best-known luxury hotels, as well as the development of a new Sheraton hotel in Addis Ababa. Both properties are expected to be managed by Marriott International.The project is expected to support more than 9,400 direct and indirect jobs across the economy, particularly in hospitality, construction, tourism services and related sectors.
"Tourism is a powerful engine for jobs and revenue, creating pathways to work and enterprise across the economy," Ethiopis Tafara, IFC's Regional Vice President for Africa, said in a statement.
Travel and tourism account for approximately 10% of Ethiopia's gross domestic product and support an estimated 3.5 million jobs, according to IFC. The sector has been identified by the World Bank Group as a key source of future economic growth and employment generation in the country. The project is also expected to introduce some of Ethiopia's first internationally certified green hotels, reflecting growing efforts to improve sustainability standards within the country's real estate and hospitality industries.
The transaction expands IFC's relationship with MIDROC Investment Group, one of Ethiopia's largest privately owned conglomerates with operations spanning agribusiness, manufacturing, mining, construction, commerce and hospitality.
IFC, the private-sector investment arm of the World Bank Group, said the investment aligns with its broader strategy of supporting private-sector-led growth, economic diversification and job creation in Ethiopia.
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