Sub-Saharan Africa’s first aerial urban transit aims to reduce emissions and boost environmental governance. ESG BROADCAST shares key takeaways.
Regulatory Extract:
The African Development Bank (AfDB) has approved a $500,000 grant to initiate a feasibility study for Rwanda’s Kigali Urban Cable Car Project, marking a pivotal step toward launching sub-Saharan Africa’s first aerial urban transport system. Funded through the AfDB’s Urban and Municipal Development Fund (UMDF), the study will evaluate Phase 1 of the 5.5 km transit system, which is expected to cost $100 million and aims to alleviate traffic congestion, reduce greenhouse gas emissions, and improve mobility for underserved communities.
The project, backed by the Rwandan government, will follow a Public-Private Partnership (PPP) model and is strategically aligned with Rwanda’s climate ambitions, including a 38% reduction in carbon emissions by 2030 and net-zero targets by 2050. The UMDF’s grant will facilitate detailed assessments to attract international investment through platforms like the Africa Investment Forum (AIF).
Phase 1 of the Kigali cable car project will span two vital corridors: Nyabugogo Taxi Park to the Central Business District (CBD), and the Kigali Convention Center to Kigali Sports City. This route will connect key landmarks including Amahoro Stadium, BK Arena, and Zaria Court. The system is projected to carry over 50,000 passengers daily, offering a 15-minute end-to-end journey and full integration with Kigali’s broader urban transport infrastructure.
The feasibility phase will benchmark international best practices from similar urban aerial systems in La Paz, Bolivia, and Singapore. It will also include environmental and social safeguards, emphasizing accessibility for persons with disabilities and employment generation for women and low-income residents. The project also aligns with Rwanda’s Green Taxonomy, E-Mobility Strategy, and Climate and Nature Finance Strategy (CNFS).
The African Development Bank’s President, Dr. Akinwumi Adesina, emphasized that the Kigali project fits within AfDB’s Ten-Year Strategy and the Alliance for Green Infrastructure in Africa (AGIA), which promotes scalable, low-carbon, inclusive transport systems. “By financing Rwanda’s urban cable car system, we are investing in a model that other African cities can emulate,” he noted.
The blended financing approach for the $100 million project will combine grants, concessional loans, and technical assistance from multiple stakeholders. Key partners expected to co-finance include the International Finance Corporation (IFC), Africa50, the Trade and Development Bank (TDB), the Africa Finance Corporation (AFC), and private investors under AGIA. The UMDF grant will specifically address the project’s viability gap, supporting risk-reduction strategies and investor confidence.
Solomon Quaynor, AfDB’s Vice President for Private Sector, Infrastructure and Industrialization, called the study a “game-changing milestone” that will generate long-term value and climate resilience for Kigali.
Strategic significance lies in Rwanda’s ability to model sustainable urban development through innovative green mobility solutions. The cable car project not only strengthens the country’s environmental governance but also enhances its investment readiness in climate-smart infrastructure—key for meeting long-term ESG compliance and operational resilience targets across urban Africa.
ESG BROADCAST will continue monitoring the updates related to this topic. Stay tuned to be updated on the related policy and pivotal regulatory shift.
