Rwanda to build a new airport- what's the deal?

September 2016. Rwanda announce that a Portuguese firm will finance and operate a new airport for an initial 25 years with an optional 15 year extension.

What is being planned and where?

Bugasera is located 25km southeast of Kigali, the capital and will be able to handle some 4.5 million passengers per year. The existing airport currently handles around 600,000, so this puts the new development into context.

Works on the new airport are due to start in June 2017 and completion is planned for December 2018, although these optimistic deadlines are rarely met. However, in Rwanda, anything is possible.

Who are MOTA-ENGIL?

MOTA-ENGIL are a Portuguese firm involved in civil construction, port operations and logistics. They were involved in the expansion works that have taken place at Kigali international. They are one of Europe’s largest construction groups and operate predominantly in Europe, Africa and Latin America.

What is driving the new development?

A strong, expanding airline.

RwandAir has grand ambitions and will be adding 2 A330’s this year, flying initially to Dubai and Mumbai and then Guangzhou and London if all goes to plan. Alongsdie this, Rwanda is perfectly geographically positioned to be a hub for Africa, sitting at the heart of the continent. RwandAir have recently launched to Benin and there are plans to start to Cote d’Ivoire in the near future

Thriving MICE business

Rwanda has recently completed the incredible Kigali Convention Centre, which will host AviaDev and the Africa Hotel Investment Forum in October 2016 and has already been host to multiple high profile events since opening, including the AU summit. Rwanda have adopted an aggressive approach to bringing in MICE business.

Liberal visa policy

Rwanda has a visa on arrival policy for all African citizens and many other countries (subject to a small charge).

Developing tourism product

Rwanda is known as the land of a thousand hills. The undulating landscape is breathtaking, the streets are safe and there is plenty for tourists to see and do. A bucket list item for everyone should be to trek the endangered mountain gorillas that only live in 3 countries (Uganda, DRC and Rwanda). Alongside this, Rwanda is developing multiple tourism initiatives showcasing the history, culture and natural beauty of the small, landlocked country.

What’s it going to cost?

The initial investment is $418 million with the total cost expected to be around $800 million. The investment is coming from the Portuguese company, that expect to recoup their investment via running the operation. This public-private partnership was hailed as a great model by The Minister for Finance and Economic Planning, Amb. Claver Gatete

“The government has been investing heavily from the money we generate from taxes, and from loans and grants. But then we have reached a level where we need to develop faster. Whenever we do business in joint ventures with the private sector, we can achieve much more with less,” he said.

“That is how we can grow faster. For big projects that are expected to generate significant profits, we always want to give a chance to the private sector,”

The upcoming AviaDev and AHIF conferences will help deliver new air routes and more hotel investment and development in Rwanda, propelling the economy forwards. If you would like to understand more about the Bugasera development, be sure to join us this Octoberwww.africa-conference.com