The Addis International Convention Center Share Company (AICC) has approved a second-phase expansion project valued at Birr 7.537 billion, less than a year after inaugurating its first phase in February 2025.

The decision comes despite the company recording a Birr 150.4 million net loss in the 2024/25 fiscal year, its first year of operation. AICC attributed the loss to the early-stage nature of large convention infrastructure projects, high setup costs, depreciation, rising administrative and labor expenses, and low initial utilization.

The expansion is expected to be completed within 36 months and is aimed at strengthening Addis Ababa’s role as a diplomatic, commercial, and conference hub. The project will include a 3,100-seat main plenary hall, two additional auditoriums, expanded trade fair halls, a childcare center, and parking facilities for more than 800 vehicles.

AICC plans to finance the project through a combination of shareholder capital and bank loans. Around Birr 3.7 billion, representing 49 percent of the project cost, is expected to be raised from existing and new shareholders, while the remaining Birr 3.837 billion will come from commercial bank financing.

The company’s revenue increased from Birr 14.6 million during its initial months of operation to Birr 88.97 million by the end of 2024/25. Total assets also rose from Birr 2.13 billion in 2023 to Birr 10.39 billion in 2025.

The Addis Ababa City Administration remains the majority shareholder with a 90 percent stake, while 1,093 private investors hold the remaining shares. The Ethiopian Capital Market Authority has also approved AICC’s registration prospectus covering more than 12.2 million ordinary shares.

Source: Capital Ethiopia Newspaper

Image Source: Fana BC