Construction of the Kigali Innovation City (KIC) is set to commence in September 2024, following the conclusion of negotiations between the Rwandan government and key project stakeholders. An implementation agreement was signed on Friday by Finance and Economic Planning Minister Uziel Ndagijimana and Africa50 CEO Alain Ebobissé during the African Development Bank’s annual meetings in Nairobi, marking a significant step forward for the $300 million initiative.

Africa50, a continental infrastructure investment firm with Rwandan ownership, will finance the project in collaboration with the Arab Bank for Economic Development in Africa (Badea) and other partners.

“This signing allows us to progress to the next phase, which involves finalizing financing and commencing construction within the next three months,” stated Mr. Ebobissé during the signing ceremony.

Once completed, KIC aims to enhance Rwanda’s technological innovation capabilities and increase its information and communication technology exports by $150 million annually. Additionally, it is expected to attract over $300 million in foreign direct investment to Rwanda each year.

Dr. Ndagijimana emphasized that the innovation city will play a crucial role in promoting digital technologies, aligning with Rwanda’s vision of building a knowledge-based economy.

The agreement follows extensive negotiations involving Africa50, Badea, the Rwandan government, and the Rwanda Development Board (RDB), which will oversee the project’s implementation. These negotiations had previously delayed the project, which has been part of Rwanda’s Vision 2020 initiative, launched in 2000 to spur national development.

“Both parties aimed to ensure the project was bankable and attractive to other financial contributors, which is why it took time,” explained Dr. Ndagijimana.

Badea has already joined as an additional financier, with plans to support the construction of shared infrastructure and initial buildings. The total funding amount from Badea is still under discussion.

KIC is one of 24 projects across 28 African countries that Africa50 has committed to financing since its inception in 2017, and it represents one of their most significant investments to date.

According to projections from Africa50, KIC is expected to create over 50,000 jobs upon completion and produce more than 2,600 graduates annually over the next 30 years, contributing significantly to the pool of tech-savvy entrepreneurs in Rwanda and across Africa.