The African Trade and Investment Development Insurance (ATIDI) has approved an $84 million (approximately Rwf 106.6 bn) billioncounter-guarantee, a pivotal move that unlocks over $322 (Rwf 418.6 bn) million in total financing from a group of local and regional banks for the ongoing construction of the Bugesera International Airport.
This landmark project, set to redefine Rwanda’s role as a regional trade and logistics hub, is a testament to strategic partnerships and a bold commitment to economic transformation.
ATIDI’s crucial $84 million counter-guarantee acts as a de-risking mechanism, empowering three prominent Rwandan banks – Bank of Kigali (BK), BPR Bank Rwanda Plc, and Development Bank of Rwanda (BRD) – alongside regional powerhouse KCB Bank Kenya, to collectively issue bonds and guarantees exceeding $322 million.
This innovative financial structure allows these institutions to extend their lending capacity beyond their usual Single Obligor Limits (SOL), ensuring the smooth and accelerated execution of this vital infrastructure project. BPR Bank Rwanda Plc has taken the lead role as the Mandated Lead Arranger and Facility Agent for this consortium.
Patience Mutesi, Managing Director of BPR Bank Rwanda Plc, underscored the significance of this collaboration, stating, “We are honored to lead this transformational financing effort. As Mandated Lead Arranger, BPR Bank Rwanda Plc is proud to play a pivotal role in unlocking capital for a project that will reshape Rwanda’s connectivity and competitiveness.”
Vision 2050: Bugesera airport as a strategic economic pillar
The new Bugesera international airport is more than just an aviation facility; it is a cornerstone of Rwanda’s ambitious Vision 2050, a national strategy aimed at elevating the country to upper-middle-income status by 2035 and a high-income economy by 2050. Valued at over $2 billion, the airport is scheduled for completion by mid-2028 and is strategically positioned to transform Rwanda into a key hub for trade and logistics across Africa.
This monumental undertaking is a joint venture between the governments of Rwanda and Qatar. Construction is being meticulously carried out by a consortium comprising Mota-Engil from Portugal, UCC Holding from Qatar, and Consolidated Contractors Company (CCC) from Greece, operating under the unified entity UMC.
Currently, construction progress stands at an impressive 25% to 30%, with foundational work, including runways, internal roads, and water drainage systems, having been completed by the end of 2024.
The project has now transitioned into the vertical construction phase, focusing on the erection of the main terminal and its associated facilities.
Fostering continental trade: Alignment with AfCFTA
The Bugesera International Airport project is deeply aligned with the principles of the African Continental Free Trade Area (AfCFTA) framework, an initiative designed to facilitate the seamless movement of goods, services, and people across the continent.
The AfCFTA, signed in Kigali, Rwanda, in 2018, represents the world’s largest free trade area by member states, aiming to significantly boost intra-African trade by dismantling barriers and strengthening regional value chains.
Manuel Moses, Chief Executive Officer of ATIDI, articulated the broader impact of the airport, stating, “The new airport is not just about infrastructure; it’s about unlocking regional value chains and ensuring Africa trades more with itself.”
He further emphasized, “Our support demonstrates the value addition of ATIDI’s de-risking solutions in scaling up lending capacity and unlocking financing by banks to Rwanda’s development priorities.”
Economic ripple effects: A brighter future for Bugesera and beyond
According to Rwanda Civil Aviation Authority (RCAA) and Rwanda Airports Company (RAC), the New Bugesera International Airport is meticulously designed to handle an initial capacity of 7 to 8 million passengers annually, with plans to expand to 14 million passengers by 2032 in its second phase.
The state-of-the-art facility will feature a 130,000-square-meter terminal, a 3,750-meter runway, and a dedicated cargo terminal capable of processing 150,000 tonnes of cargo each year.
Located approximately 23 kilometers southeast of Kigali City, the airport will complement the existing Kigali International Airport, significantly boosting Rwanda’s tourism and business sectors.
Beyond its operational capacity, the project is a powerful engine for job creation, expected to employ over 6,000 workers during its construction phase. This influx of employment opportunities will have a profound positive impact on the local communities in Bugesera District, providing livelihoods and stimulating local economies.
Aimable Ishimwe / The Kaminuza Star