In a statement on Wednesday, AfDB said the funds will be drawn from the Bank Group’s Urban and Municipal Development Fund (UMDF) and are expected to lay the groundwork for the Kigali Urban Cable Car Project.
The 5.5 km aerial transit system, valued at $100 million, promises to ease traffic, cut emissions, and connect communities to vital services.
The project is designed to become a cornerstone of Kigali’s green and inclusive urban mobility strategy.
The first phase of the project will connect two major corridors: from Nyabugogo Taxi Park to the Central Business District (CBD), and from the Kigali Convention Center to Kigali Sports City, linking key landmarks such as Amahoro Stadium, BK Arena, and the new Zaria Court.
Construction is expected to commence in late 2026, with commissioning scheduled for 2028. Once operational, the cable car will carry more than 50,000 passengers daily, offering a 15-minute end-to-end commute and integrating seamlessly with the city’s broader transport network.
“This transformative project aligns perfectly with the Bank’s vision for sustainable, green, climate-resilient urban mobility infrastructure,” said AfDB President Dr. Akinwumi Adesina.
“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 deeply embedded in Rwanda’s national priorities, including its Green Taxonomy, E-mobility Strategy, and Climate and Nature Finance Strategy. It also supports the country’s ambition to reduce carbon emissions by 38% by 2030 and achieve net-zero emissions by 2050.
The feasibility study will incorporate best practices from successful systems in cities like La Paz, Bolivia, and Singapore. It will emphasise universal access, particularly for persons with disabilities, and promote inclusive employment opportunities, especially for women, youth, and low-income residents. The study will also assess the project’s viability gap to guide investment and risk management.
Solomon Quaynor, AfDB’s Vice President for Private Sector, Infrastructure, and Industrialisation, called the grant “a game-changing milestone,” adding that “through the UMDF, AfDB is laying the foundation for an investment-ready green infrastructure asset that offers both impact and returns.”
According to Imena Munyampenda, Director General of the Rwanda Transport Development Agency, the project will be implemented through a Public-Private Partnership (PPP) model.
The financing strategy for the $100 million infrastructure will combine grants, concessional loans, technical assistance, and blended finance. Alongside the Rwandan government and the AfDB, partners such as the International Finance Corporation (IFC), Africa50, Trade and Development Bank (TDB), Africa Finance Corporation (AFC), private sector investors, and the Alliance for Green Infrastructure in Africa (AGIA) are expected to contribute.
The project builds on previous UMDF support for Rwanda, including the Kigali Urban Transport Improvement project, and is expected to be a showcase for investment during forums such as the Africa Investment Forum (AIF).
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