UMDF takes urban transit to new heights in Kigali
The Urban and Municipal Development Fund continues to champion innovative urban mobility solutions across Africa.
The Urban and Municipal Development Fund (UMDF) has committed $500,000 to support a comprehensive feasibility study for what will become sub-Saharan Africa's first aerial urban transit system. This strategic investment represents the UMDF’s ongoing commitment to transforming African cities through sustainable, inclusive infrastructure solutions.
Pioneering urban transit innovation
The grant will facilitate a thorough feasibility assessment of the Kigali Urban Cable Car Project, a 5.5-kilometer mobility network valued at $100 million. This forward-thinking urban infrastructure project addresses multiple urban challenges simultaneously, drawing on similar models in La Paz, Bolivia, and Singapore.
The proposed cable car system will serve two critical transit corridors in Rwanda's capital: connecting Nyabugogo Taxi Park to the Central Business District, and linking the Kigali Convention Center to Kigali Sports City. These routes will provide essential connectivity to major public landmarks including Amahoro Stadium, BK Arena, and the newly developed Zaria Court.
Building on proven success
This investment builds on the UMDF's track record of enabling transformative urban projects in Rwanda. The UMDF previously provided feasibility funding for the Kigali Urban Transport Improvement (KUTI) project, which successfully attracted over USD 100m worth of critical international investment from the African Development Fund (AFD) and other partners. Our upstream funding approach proves that strategic early-stage support can unlock significantly larger investments and create lasting urban transformation.
Addressing urban challenges through innovation
With the capacity to transport over 50,000 passengers daily on 15-minute end-to-end journeys, the cable car system promises to significantly reduce traffic congestion while cutting greenhouse gas emissions. Equally important, it will connect underserved communities to employment opportunities and essential services, embodying the UMDF's commitment to inclusive urban development.
Strategic partnership approach
As a trust fund hosted by the African Development Bank, UMDF brings more than just financial resources to urban projects. Its comprehensive support includes technical assistance, partnership development, and city engagement – all critical components for complex infrastructure initiatives like this cable car system.
The feasibility study will ensure that the Kigali cable car system incorporates accessibility features for disabled users and creates employment opportunities for women and low-income residents.
Catalyzing investment for scale
Our feasibility study funding is designed to position the project for international investment attraction, including through platforms such as the Africa Investment Forum. The study will assess the project's viability gap and create the foundation for a sophisticated $100 million financing structure that combines grants, concessional loans, blended finance, and technical assistance.
Expected implementation partners include the African Development Bank Group, the International Finance Corporation, Africa50, the Trade and Development Bank, the Africa Finance Corporation, and private investors through the Alliance for Green Infrastructure in Africa.
Alignment with continental priorities
This project exemplifies UMDF's role in advancing the African Development Bank's Ten-Year Strategy focus on urbanization and the Alliance for Green Infrastructure in Africa initiative. The cable car system aligns perfectly with Rwanda's Green Taxonomy, E-mobility Strategy, and Climate and Nature Finance Strategy, supporting the country's ambitious targets of 38% carbon emission reduction by 2030 and carbon neutrality by 2050.
Looking ahead
With construction expected to begin in late 2026 and commissioning scheduled for 2028, this project represents a new paradigm for urban mobility in Africa. Through our upstream funding, UMDF is not just supporting a single infrastructure project – we are investing in a scalable model that cities across the continent can adapt and implement.
The Kigali Urban Cable Car Project demonstrates the UMDF's commitment to identifying and nurturing innovative urban solutions that address the complex challenges facing Africa's rapidly growing cities. By providing strategic early-stage funding, we continue to prove that thoughtful investment in feasibility and planning can unlock transformative urban infrastructure that benefits millions of citizens.
As African cities continue to grow and evolve, the UMDF remains dedicated to supporting the kind of innovative, sustainable, and inclusive infrastructure projects that will define the continent's urban future.