Rwanda has secured a major financial breakthrough for the construction of the new Kigali International Airport in Bugesera. The Minister of Finance and Economic Planning, Yusuf Murangwa, announced that the project’s overall financing costs will decrease.
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Speaking to Parliament on February 12, 2026, Murangwa explained that the government shifted from high-interest commercial loans to more affordable funding partners. The airport remains one of Rwanda’s most important infrastructure projects. It is expected to establish the country as a leading aviation hub in Africa.
Strategic Partnership With the World Bank
A major factor reducing costs is Rwanda’s partnership with the World Bank. Murangwa said the government considered two financing options: commercial loans with high interest or support from development partners with cheaper credit.
Through negotiations, the World Bank agreed to guarantee 95% of the airport’s construction funds. This guarantee lowered borrowing costs and gave Rwanda access to financing at lower interest rates.
Murangwa noted that Rwanda had initially allocated nearly $400 million for the project. The new arrangement allows the government to withdraw funds gradually based on immediate construction needs. This method reduces interest costs while keeping construction on schedule.
Budget Adjustments and Parliamentary Approval
The announcement came during a draft law presentation to amend the 2025/2026 national budget. While airport financing became more efficient, the government increased funding for other projects by nearly 250 billion Rwandan Francs.
This revised budget demonstrates Rwanda’s strategy to manage debt responsibly while supporting major infrastructure projects.
Construction Progress and International Contractors
Construction at Bugesera Airport is progressing steadily. Jules Ndenga, CEO of Aviation Travel and Logistics Holding, confirmed that foundational work on runways and water infrastructure finished by the end of 2024.
The project is managed by a joint venture called UMC. It includes Mota-Engil, UCC Holding, and Consolidated Contractors Company.
Qatar Airways holds a 60% stake in the project. The first phase, set to finish in 2027, will handle seven million passengers annually. The second phase in 2032 will expand capacity to 14 million passengers.
Economic Impact on Bugesera Region
The airport project has already boosted local employment. Phase one created 2,000 jobs, which will rise to 6,000 after full completion.
Local businesses in Nyabagendwa and Nyamata have also grown. New restaurants, shops, and services now cater to construction workers and contractors.
Overall, the airport strengthens Rwanda’s aviation ambitions while driving regional economic growth.
