The International Finance Corporation (IFC) is set to provide 80 million loan to MIDROC Ethiopia PLC (MEP), the hospitality arm of MIDROC Investment Group (MIG),
IFC is providing MEP with an $80 million long‑term loan to support the refurbishment of the Sheraton Addis (Luxury Collection) and the development of a new Sheraton hotel in Addis Ababa (the Project).
MEP is Ethiopia’s largest private sector conglomerate working to expand premium hospitality capacity in Ethiopia.
The investment is expected to support over 9,400 direct and indirect jobs, strengthen tourism flows, and open pathways to formal employment for young people and women, who continue to find opportunity and advancement through the sector.
The partnership supports the World Bank Group (WBG)’s Country Partnership Framework (FY18–22, extended to FY26) for Ethiopia, which identifies tourism as a major source of the country’s economic growth. It also aligns with the WBG Gender Strategy (FY24–30) by accelerating gender equality through formal employment generation and workplace inclusivity.
“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,” said Ethiopis Tafara, IFC Regional Vice President for Africa.
Travel and tourism accounted for approximately 10% of Ethiopia’s GDP, along with 3.5 million direct and indirect jobs spread throughout the economy. Business and leisure tourism thus can make significant contributions to Ethiopia’s local economic activity. Job creation is particularly essential, given the large and growing population, with an estimated two million people joining the workforce each year.
“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 modernizing the domestic hospitality sector while delivering a sustained and meaningful impact on job creation in Ethiopia,” said Mr. Jemal Ahmed Abdu, CEO of MIG.
The Project is expected to play a significant role in updating and expanding the much-needed stock of accommodation options in Addis Ababa to host major international events starting with the United Nations Climate Change Conference in November 2027. The Project will also produce the first green certified hotels in a country where the green building ecosystem is still very nascent.
This investment also reflects a broader and deepening partnership between IFC and MIG across sectors critical to Ethiopia’s development, including agribusiness, manufacturing and healthcare sectors. It reinforces the WBG’s commitment to diversification, value addition, and job creation – working with strong domestic champions to translate investment into sustained economic opportunity.
IFC – a member of the WBG – is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries.
In fiscal year 2025, IFC committed a record $71.7 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet.
MIDROC Ethiopia PLC (MEP) is the hospitality sector arm of MIG – Ethiopia’s largest private sector conglomerate established in 1993, employing over 80,000 people across six core industry clusters: agribusiness, manufacturing, mining, construction, commerce, and hospitality. MEP currently owns and operates the Sheraton Addis (Luxury Collection) and will also develop a new Sheraton Hotel and Westin Addis Hotel, which are and will all be managed by Marriott International.
