The African Development Bank (www.AfDB.org) has approved a grant of $500,000 to undertake a feasibility study into the first phase of a cable car transport network in Kigali, that will be sub-Saharan Africa’s first aerial urban transit system.
The funds, to be sourced from the Bank Group’s Urban and Municipal Development Fund (https://apo-opa.co/45CiDm9), are expected to help pave the way for the Kigali Urban Cable Car Project, a 5.5 km mobility initiative valued at $100 million and promising to ease the city’s traffic congestion, reduce greenhouse gas emissions, and connect underserved communities to jobs and essential services.
The Urban and Municipal Development Fund (UMDF) is a trust fund hosted by the African Development Bank, which provides direct support to cities, to mobilize funding and technical assistance, develop partnerships, city engagement, project identification and investment.
Phase 1 of the project will comprise two critical transit corridors: Nyabugogo Taxi Park to the Central Business District (CBD) Hub; and the Kigali Convention Center to Kigali Sports City, connecting public landmarks such as Amahoro Stadium, BK Arena, and the newly developed Zaria Court.
The feasibility study is expected to position the project to attract international investment, including through platforms such as the Africa Investment Forum (AIF). The UMDF provided funding for the feasibility of another project in the country, the Kigali Urban Transport Improvement project, to help attract critical investment.
Construction is expected to begin in late 2026, with commissioning scheduled for 2028. Once complete, the cable car will convey over 50,000 passengers a day on a 15-minute end-to-end journey, integrating into the city’s existing transport infrastructure.
African Development Bank Group president Dr. Akinwumi Adesina, said: “This transformative project aligns perfectly with the Bank’s vision for sustainable, green climate-resilient urban mobility infrastructure, and with the Bank’s Ten-Year Strategy, which focuses on urbanization, and the Alliance for Green Infrastructure in Africa (AGIA), a global partnership initiative driven by the African Development Bank Group, Africa50 and the African Union. By financing Rwanda’s urban cable car system, we are investing in a scalable model of low-carbon, inclusive public transport that cities across Africa can emulate.”
The project is anchored in Rwanda’s Green Taxonomy, E-mobility Strategy, and Climate and Nature Finance Strategy (CNFS) and aligns closely with Rwanda’s national climate objectives, which target a 38% reduction in carbon emissions by 2030 and carbon neutrality by 2050.
The project implementation is expected to follow a Public-Private Partnership model, according to Imena Munyampenda, the Director General of Rwanda Transport Development Agency.
The feasibility study plans to draw lessons from successful cable car systems in La Paz, Bolivia, and Singapore. The system will prioritize access for the disabled, employment opportunities for girls, women and low-income residents; and job creation, capacity building and technology transfer.
“This pioneering feasibility study is a game-changing milestone,” said Solomon Quaynor, African Development Bank’s Vice President for Private Sector, Infrastructure, and Industrialization. “Through the UMDF, AfDB is laying the foundation for an investment-ready green infrastructure asset that offers both impact and returns.”
Blended Financing
The $100 million funding structure will comprise a strategic mix of grants, concessional loans, blended finance, and technical assistance. The UMDF grant will fund an assessment of the project’s viability gap.
The Rwandan government, the African Development Bank Group, and other development partners, will collaborate to offer blended financing, along with commercial funding from the International Finance Corporation (IFC), Africa50, the Trade and Development Bank (TDB), the Africa Finance Corporation (AFC), as well as private investors and the Alliance for Green Infrastructure in Africa (AGIA).
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Media Contact:
Janet Onyango
African Development Bank Group
[email protected]