The Addis International Convention Center (AICC) Share Company has approved a second‑phase expansion project worth 7.537 billion birr, doubling down on its ambitions despite registering a 150.4 million birr net loss in its first year of operation.
The decision comes less than a year after the institution inaugurated its first phase in February 2025, following a 5.9 billion birr investment in modern exhibition halls and convention infrastructure. While the initial phase has been completed, AICC says it is still in a “pre‑profit” stage, grappling with the high setup costs and low utilization typical of large capital‑intensive projects in the global Meetings, Incentives, Conferences, and Exhibitions (MICE) sector.
The new expansion plan is designed to strengthen Addis Ababa’s positioning as Africa’s diplomatic and commercial hub, enabling the city to compete more effectively with regional convention centers in Nairobi, Cape Town, and other major African capitals. The project, expected to be completed within 36 months, will add a main plenary hall for 3,100 people, two additional auditoriums, expanded trade‑fair halls, a childcare center, and a modern parking facility for over 800 vehicles.
To finance the 7.537 billion birr outlay, AICC plans to raise 3.7 billion birr (49 percent) from existing and new shareholders, with the remaining 3.837 billion birr (51 percent) to be secured through commercial bank loans. The expansion is projected to increase the company’s paid‑up capital to 20.5 billion birr, placing it among the highest‑capitalized service‑sector firms in East Africa.
AICC says the 150.4 million birr loss recorded in the 2024/25 fiscal year is normal for such mega‑projects in their early years. The shortfall is driven largely by 80.17 million birr in depreciation charges, a fivefold increase in administrative and labor costs, and a 46 percent vacancy rate across its rental space. Nonetheless, the center’s revenue jumped from 14.6 million birr in its first months of operation to 88.97 million birr by the end of 2024/25, a sign that the institution is gradually gaining traction in the commercial market.
The company’s balance sheet has also expanded rapidly. Total assets grew from 2.13 billion birr in 2023 to 10.39 billion birr in 2025, largely reflecting the construction of the first phase. If the second phase proceeds as planned, financial feasibility studies predict that investment costs could be recovered within four years, provided the center reaches its target of 100 percent occupancy by the 2028/29 fiscal year. At that level, the projected internal rate of return (IRR) is estimated at 39.95 percent.
The Addis Ababa City Administration remains the primary shareholder, while 1,093 private investors own the remaining 10 percent. The City Administration injected 6.1 billion birr in capital during 2024/25 alone, underscoring the public‑sector backing that underpins AICC’s sustainability. However, the institution must still settle 4.9 billion birr in outstanding debts to contractors to secure full title deeds for assets valued at over 5.6 billion birr, a key step for using those assets as collateral for future loans.
Currently, AICC is the largest convention center in Ethiopia. Once the second phase is completed, market analyses suggest its share of the domestic convention and exhibition market could reach 87.5 percent. The center is also positioning itself to attract meetings of the African Union, the United Nations Economic Commission for Africa (UNECA), and other major international forums that have so far been hosted in other African cities.
In parallel, the Ethiopian Capital Market Authority has approved the registration prospectus of the Addis International Convention Center Share Company under Capital Market Proclamation No. 1248/2021 and related directives. The process covers more than 12.2 million ordinary shares currently held by existing shareholders, with each share carrying a par value of 1,000 birr. The company emphasized that this phase does not include a new share offering; any future sales to qualified investors will be conducted through a separate, targeted process.
