• Rwanda, partners break ground on $2 billion Kigali Innovation City

• Smart city targets digital economy, education and technology exports

• Project backed by Africa50, BADEA through public-private partnership

The Government of Rwanda, Africa50 and the Arab Bank for Economic Development in Africa (BADEA) on Tuesday 10 September officially broke ground on the construction of Kigali Innovation City (KIC), a 61-hectare smart city development designed to support Africa-led digital transformation through a mix of international and local capital. The project brings together public institutions, development finance and private investment to accelerate Rwanda’s shift towards a digital-first, knowledge-based economy anchored in innovation, education and technology-driven enterprise.

The groundbreaking ceremony in Kigali brought together senior government officials, institutional investors, multinational corporations and project developers, marking the start of construction on what is set to become one of the largest smart cities on the African continent. KIC is positioned as a cornerstone project aligned with Rwanda’s Startup Act and broader national strategy to attract digital businesses, students and professionals relocating to Africa, while strengthening non-resource-based productivity.

Kigali Innovation City is projected to reach an economic value of $2 billion upon completion, generate $150 million in ICT exports annually and attract more than $300 million in foreign direct investment (FDI). The project is designed to host top-tier universities, startup incubators, accelerators and research centres operating in data-driven and disruptive sectors, including artificial intelligence, robotics and machine learning.

The development reflects the growing role of the digital economy in Sub-Saharan Africa, where the digital sector has been the fastest-growing contributor to economic output in several markets, including South Africa, Kenya and Nigeria. By concentrating advanced infrastructure, talent and capital within a single ecosystem, KIC is intended to support Rwanda’s diversification away from natural-resource-dependent growth and towards export-oriented digital services.

KIC is being developed as a public-private partnership, with Africa50 and the Rwanda Development Board acting as sponsors and shareholders, while BADEA serves as a lender. The structure brings together African institutional capital and international financing to support large-scale digital infrastructure, reflecting wider efforts to close the continent’s digital divide through blended finance models.

Policy alignment and investor confidence

Delivering the keynote address at the ceremony, Rwanda’s Prime Minister, Rt. Hon. Édouard Ngirente, described the project as a milestone in the country’s technology strategy, stating that the groundbreaking marked a critical moment in Rwanda’s transition from technology consumption to technology production on the African continent.

According to Rwanda’s Development Board Chief Executive Officer Francis Gatare, the project reflected a collective national ambition to position innovation, education and technology as central pillars of Rwanda’s future development. He noted that KIC aligns public policy, infrastructure and private investment to support long-term economic transformation.

On his part, Africa50 Chief Executive Officer Alain Ebobissé, speaking during a fireside chat titled Catalysing Innovation: Building a Pan-African Technology Hub, highlighted Rwanda’s regulatory environment and policy consistency as factors supporting investor confidence. He said the country’s long-term vision and implementation framework reduced investment risk and improved the project’s ability to attract private capital, while supporting universities in developing advanced skills and technologies.

Education, talent and technology production

The project already hosts institutions such as Carnegie Mellon University Africa, which is among the anchor tenants of the innovation city. Speaking at the event, Dr Conrad Tucker, Director of Carnegie Mellon University Africa and Associate Dean for International Affairs Africa, said KIC was designed to provide an environment capable of supporting the development of large-scale technology companies operating from Africa.

Rwanda’s Minister for ICT and Innovation, Paula Ingabire, said the city would support the development of products and industries intended for global deployment, reinforcing Rwanda’s role as an enabling environment for digital trade and participation in the global digital economy.

South-South cooperation

BADEA’s Special Representative of the President for Environmental, Social and Governance, Ibrahima Cheikh Diong, highlighted the project as an example of increased South-South cooperation. He said the bank would use its network and convening power to mobilise additional international and Gulf-based capital to support the project’s financing and long-term success.

The ceremony also featured participation from 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.

According to an analysis published by The New Times in Rwanda, Kigali Innovation City is positioned as a catalyst for the country’s technological development, supported by its proximity to the Kigali Special Economic Zone in Gasabo District. The publication noted that the project’s infrastructure and collaborative environment are expected to attract talent and support entrepreneurship, contributing to national economic growth.

The analysis further highlighted Rwanda’s role as a testing ground for new technologies, where innovations are developed locally before being deployed internationally, reinforcing the country’s positioning within global digital value chains.

With construction now underway, Kigali Innovation City represents a convergence of African leadership, international finance and domestic policy aimed at scaling digital production, exports and investment, as Rwanda positions itself within the fast-growing global digital economy.