- The event - to be called the African Grand Prix - will be held on a new, purpose-built circuit in Bugesera, 25 miles south of the capital Kigali and next to the city's new international airport. It will be the first F1 race in Africa since 1993.
Rwanda has signed a 10-year deal with Formula 1 to host races in the African country, starting "in the early 2030s".
The event - to be called the African Grand Prix - will be held on a new, purpose-built circuit in Bugesera, 25 miles south of the capital Kigali and next to the city's new international airport. It will be the first F1 race in Africa since 1993.
A statement from F1 said the project came as a result of "years of collaboration to ensure the right foundations, with the best partner, are in place to deliver a successful, sustainable and world-class grand prix for generations to come".
The circuit, designed by the former F1 driver Alex Wurz, has been "designed to work in harmony with the natural landscape, using the area's elevation changes to create a unique and challenging racing experience while delivering exceptional viewing opportunities for fans," the statement added.
F1 hopes the race will provide an opportunity for the sport to expand its profile in Africa, a relatively unexplored market compared to Europe, Asia and the Americas.
It has not yet been established where the race may best fit into the schedule during the year.
The race is likely to be controversial as Rwanda has previously been accused of sportswashing.
The sport is likely to want to avoid holding the race in the main rain season of March to May. There is a shorter, less disruptive rain season from October to November.
F1 is committed to keeping the season at no more than 24 races.
Rwanda President Paul Kagame said: "For more than three decades, the world's premier motorsport championship has raced without this continent, and that changes with this agreement.
"Rwanda is proud to host the Formula 1 African Grand Prix, and to share this moment with more than 100 million fans across Africa, many of them young people who deserve to see the sport at home and to see themselves in it: as engineers, technicians, entrepreneurs and, one day, drivers.
"The circuit in Bugesera, alongside the new international airport, will bring jobs, skills, tourism and new business to our country and our region for decades to come, because our aim was never a single race weekend, but a lasting benefit for our people."
F1 president Stefano Domenicali said the new contract was "a landmark moment for F1", which would mean the sport was racing "on every inhabited continent".
Domenicali added: "Africa has always been part of Formula 1's future, and from the beginning we were determined to return in the right way, with the right partner, a long-term commitment and a clear vision for creating meaningful impact."
Sportswashing controversy
The race is likely to lead to opposition from human rights groups accusing Rwanda of sportswashing, as has been the case with its sponsorship of Premier League football clubs Arsenal and Aston Villa.
Rwanda's east-central African neighbour, the Democratic Republic of Congo, has filed a case against the country at the International Court of Justice (ICJ), accusing it of breaching multiple international treaties covering genocide prevention, racial discrimination, women's rights and torture.
A spokesperson for F1 said: "We have the opportunity to inspire and bring the passion of F1 to 100 million people across Africa and sport can be a positive force for good."
The track's build process will be overseen by three companies, with long-time F1 track architect Tilke and DAR working alongside WurzDesign as the creator of the circuit.
It is designed to be fast and flowing, with significant elevation change, using the natural contours of Rwanda's hilly landscape.
The only grand prix in Africa previously has been in South Africa, which hosted a race during the apartheid era - from 1960-66 in East London, now known as KuGompo City, before the race moved to Kyalami near Johannesburg from 1976-85.
Kyalami returned for two races in 1992 and 1993 as apartheid was coming to an end.
The country has held talks with F1 in recent years about a return at various venues, including Kyalami and Cape Town, but a deal has not proved possible.