Rwanda has launched construction of a US$2 billion smart city project aimed at positioning the country as a hub for Africa’s fast-growing digital economy, drawing on a mix of domestic policy support, African institutional capital and international financing.
The Kigali Innovation City (KIC) project was officially launched by the Rwandan government in partnership with Africa50 and the Arab Bank for Economic Development in Africa (BADEA). The 61-hectare development is designed to support technology-driven growth through innovation, higher education and digital enterprise.
The groundbreaking ceremony in Kigali brought together senior government officials, development finance institutions, multinational firms and private investors, marking the start of construction on what is expected to become one of Africa’s largest purpose-built innovation districts.
KIC is projected to reach an economic value of about US$2 billion upon completion, generate US$150 million annually in ICT exports, and attract more than US$300 million in foreign direct investment, according to project sponsors. The city will host universities, startup incubators, accelerators and research centres operating in advanced fields such as artificial intelligence, robotics and machine learning.
The project aligns with Rwanda’s Startup Act and broader strategy to build a knowledge-based economy, reduce dependence on natural-resource-driven growth and attract global digital businesses, students and professionals to the continent.
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KIC is being developed as a public-private partnership, with Africa50 and the Rwanda Development Board acting as sponsors and shareholders, while BADEA provides debt financing. The structure reflects a blended-finance approach that combines African institutional capital with international funding to support large-scale digital infrastructure.
Delivering the keynote address, Rwanda’s Prime Minister Édouard Ngirente described the project as a turning point in the country’s technology agenda, saying it marked a shift from technology consumption to technology production.
“This groundbreaking represents a critical step in Rwanda’s ambition to become a producer of technology solutions for Africa and beyond,” Ngirente said.
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Rwanda Development Board Chief Executive Francis Gatare said the project reflected a national commitment to placing innovation, education and technology at the centre of long-term economic development. He added that aligning policy, infrastructure and private capital was essential to sustaining investor confidence.
Africa50 Chief Executive Alain Ebobissé said Rwanda’s regulatory clarity and policy consistency had reduced investment risk and helped attract long-term capital. Speaking during a panel discussion, Ebobissé said the project demonstrated how strong governance frameworks could support large-scale technology investments while strengthening skills development.
The development comes as the digital economy has emerged as one of the fastest-growing contributors to output in several African markets, including South Africa, Kenya and Nigeria. Rwanda is seeking to capture a share of this growth by building export-oriented digital services and technology-enabled businesses.
KIC already hosts Carnegie Mellon University Africa, one of its anchor institutions. Speaking at the event, Conrad Tucker, Director of Carnegie Mellon University Africa, said the innovation city was designed to support the emergence of globally competitive technology companies operating from the continent.
Rwanda’s Minister for ICT and Innovation, Paula Ingabire, said the city would enable the development of digital products and services for global markets, strengthening Rwanda’s participation in international digital trade and value chains.
BADEA’s Special Representative for Environmental, Social and Governance, Ibrahima Cheikh Diong, described the project as a model of growing South-South cooperation, saying the bank would leverage its network to mobilise additional international and Gulf-based capital.
The ceremony was also attended by private sector representatives, including Lou Major, Managing Director for East and Southern Africa at Ansys, and Craig Clulow, Chief Executive Officer of Kigali Innovation City Company Ltd.
Local media analysis has highlighted KIC’s proximity to the Kigali Special Economic Zone as a strategic advantage, enabling integration between advanced digital services, manufacturing and logistics. Rwanda has increasingly positioned itself as a testing ground for new technologies that can be scaled across regional and global markets.
With construction now underway, Kigali Innovation City represents a convergence of public policy, African capital and international finance, as Rwanda seeks to scale digital production, exports and investment within Africa’s rapidly expanding digital economy.
