Why Have Certain Commercial Banks Companies Refused to Finance the East African Crude Oil Pipeline(EACOP) in Uganda and Tanzania?

The usual obstacle that stands in the way of many initiatives in East Africa is financing.

Moreover as, many energy projects are capital intensive. One invariably has to look abroad to find a way to raise capital.

While I understand that the East African crude oil pipeline(EACOP) project is going and must go ahead.

 

The question lingered in my mind: Why do certain commercial banks such as Deutsche Bank, Citi, and Societe generally not finance the EACOP project?

Are banks refuse to finance the project due to self-regulations(ESG, equator principles), activist pressures, or other reasons?

The oil and gas(energy) project are capital intensive as these commercial banks refuse to finance fossil fuel(energy) projects. You will not build these new plants and pipelines all over East Africa.

The demand for fuel is going up in Tanzania, Uganda, and East Africa as the population of these countries is growing.

Without enough funding to come into the energy industry, we will not build these oil and gas pipelines, gas plants, refineries, and fuel filling stations that could add the supply of fuel.

 

Back to my question, why certain commercial banks are not financing the EACOP project?

The answer is pretty easy: activist pressure.

 

It’s funny to watch the proliferation of emotional activists who want the fossil fuel to end. Still, they enjoy comfortable lifestyles built on the foundation of oil and gas(fossil fuel), and they want fossil fuels to end, but they are not willing to give up their lifestyle.

The people telling us not to develop fossil fuels are the same people flying around the world in Aeroplanes and living and enjoying economies powered by oil and gas(fossil fuels)

We all know that massive oil and gas projects like the East African crude oil pipeline(EACOP) project can improve the lives of our people and empower them with jobs.

Furthermore, such oil and gas projects will reduce poverty in East Africa more effectively than contributions to the poor.

For East Africa to continue its progress in medicine, social responsibility, science, education, and general quality of life, it must ensure an increasing supply of abundant, reliable, and affordable energy. So the development of oil and gas(fossil projects) is crucial to fuel East Africa’s economic prosperity.

Since the Russian war in Ukraine, how many activists and industry critics have talked about the environment? The answer is pretty simple. None.

They were just busy fighting to secure gas and more fossil fuels to keep their bodies warm, and their economies were moving. But when it comes to African development, they want to save the world at our expense.

The solution is to address our development issues with the resources available to us, and we will join the rest of the world in dealing with climate change and global warming.

The fact is that African states working together have the capital and capacity to finance these projects if we can organize ourselves band get together towards developing our continent as a whole and one united front.

The Nigerian entrepreneur Aliko Dangote is working in conjunction with the Nigerian government and the world bank, building what could be the biggest refinery in the world. Some part of it is already up and running. Why can’t we do the same in East Africa?