The BBC’s Geoffrey Mutagoma, who attended the inauguration, says that it took three years to develop the bus.
The Rwandan government hopes that bio-diesel will help reduce the country’s dependence on fossil fuels.
But researchers estimate that 225,000 hectares of oil plants – such as avocado, moringa and jatropha – would be needed to supply the whole of Rwanda with bio-diesel.
This represents about 8.5% of the country’s total area and has led some to doubt whether Rwanda is big enough to make bio-diesel a viable alternative to fossil fuels.
But Rwanda’s Minister of Forestry and Mines Christopher Bazivamo dismissed such fears.
“We could plant moringa trees along all the roads. That way there would be no land shortage problem,” he told the BBC.