AfDB grants $500,000 for Kigali cable car feasibility study

The African Development Bank approved a $500,000 grant to fund a feasibility study for Rwanda's $100 million Kigali Urban Cable Car Project, sub-Saharan Africa's first aerial urban transit. The blended-finance, public-private-partnership model offers Indian urban-transport planners a template for de-risking low-carbon mobility infrastructure.

The African Development Bank (AfDB) approved a $500,000 grant through its Urban and Municipal Development Fund (UMDF) to fund a feasibility study for Rwanda's Kigali Urban Cable Car Project. The study evaluates Phase 1 of the 5.5 km system, expected to cost $100 million, aiming to cut congestion and greenhouse gas emissions. The project follows a Public-Private Partnership model and aligns with Rwanda's targets of a 38% carbon-emissions reduction by 2030 and net-zero by 2050. It connects Nyabugogo Taxi Park, the Central Business District, and Kigali Convention Center.

The system targets commuters and underserved communities, projected to carry over 50,000 passengers daily on a 15-minute end-to-end journey integrated with Kigali's transport network. Affected and benefiting stakeholders include the Rwandan government, persons with disabilities, women, and low-income residents prioritised in environmental and social safeguards. Expected co-financiers include the International Finance Corporation, Africa50, the Trade and Development Bank, the Africa Finance Corporation, and private investors under the Alliance for Green Infrastructure in Africa (AGIA), via grants, concessional loans, and technical assistance.

Urban infrastructure planners and climate-finance teams should monitor the feasibility study, which benchmarks aerial systems in La Paz, Bolivia, and Singapore and addresses the project's viability gap to build investor confidence. Indian cities exploring low-carbon mass transit can study the blended-finance structure combining grants, concessional loans, and technical assistance. Watch for the UMDF's risk-reduction strategies, alignment with Rwanda's Green Taxonomy, E-Mobility Strategy, and Climate and Nature Finance Strategy, and investment mobilisation through the Africa Investment Forum.

Key figure — AfDB grant: $500,000 for the Kigali cable car feasibility study