$80M IFC Investment to Fund Sheraton Addis Revamp and Launch Ethiopia’s First Green-Certified Hotels

The International Finance Corporation (IFC) has announced a landmark partnership with MIDROC Ethiopia PLC (MEP) to invest $80 million in the country’s premium hospitality (guest reception) sector.

It was indicated that the project, backed by a long-term loan from the IFC, aims to expand upscale hotel capacity, bolster the national tourism ecosystem, and drive high, inclusive economic growth across Ethiopia.

The company has officially confirmed that this multimillion-dollar credit facility will fund two major structural initiatives in the capital city, Addis Ababa. First, it will support the comprehensive refurbishment of the renowned Sheraton Addis (Luxury Collection) hotel. On the other hand, it was noted that the investment will fund the construction of a brand-new, modern Sheraton hotel. Both properties will continue to be managed under the premium portfolio of Marriott International.

Crucially, this expansion work is expected to introduce Ethiopia’s very first “green-certified” (environmentally compliant) hotels.

By increasing premium room capacity, this project is believed to provide strategic assistance in preparing Addis Ababa to welcome over 80,000 delegates when it hosts the United Nations Climate Change Conference (COP32) in November 2027 (Whidar 2020 E.C.).

“Tourism is a powerful engine for jobs and revenue,” 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.”

With nearly two million people entering the national workforce annually, it is stated that this investment directly supports the World Bank Group’s Gender Strategy and its Country Partnership Framework, which views tourism as a primary engine for macroeconomic growth.

Jemal Ahmed, CEO of MIDROC Investment Group, added: “This collaboration will play a pivotal role in modernizing the domestic hospitality sector while delivering a sustained and meaningful impact on job creation.”
It was explained that this initiative aligns with the World Bank Group’s Country Partnership Framework (extended to fiscal year 2026), which positions tourism as a primary driving force for macroeconomic growth, as well as the World Bank Group’s Gender Strategy (fiscal year 2024–30).