Financial institutions backing the controversial East African Crude Oil Pipeline (EACOP) have come under intense criticism from Ugandan and Tanzanian civil society organisations, under the umbrella of StopEACOP.
The EACOP Ltd. company announced on Wednesday that it had secured partial financing from five banks, but critics argue that this development is a desperate attempt to instill investor confidence. The company did not disclose the loan amount, and after more than seven years of delays, the project has still not reached full financial closure.
Several of the involved lenders – Afreximbank, the Islamic Development Bank, Standard Bank, Stanbic Bank Uganda and KCB Bank Uganda – had signaled their intention to support EACOP, but they have faced sustained opposition. Afreximbank and the Islamic Development Bank, for example, first expressed interest in financing the project in 2022. This triggered a wave of backlash from civil society groups. Standard Bank, too, has been under relentless scrutiny for its reported involvement in the pipeline.
With this confirmation, these financial institutions have positioned themselves as enablers of environmental degradation and climate change, accused of facilitating the exploitation of Uganda and Tanzania’s natural resources for corporate profits while disregarding the rights and livelihoods of local communities. Critics argue that EACOP is not about development but about funneling wealth to international oil giants like TotalEnergies at the expense of the people.
In a statement signed by StopEACOP Campaign Coordinator Zaki Mamdoo, the coalition condemned the banks’ decision, calling it reckless and a betrayal of communities already suffering the devastating impacts of climate change. “At a time when the world is grappling with intensifying climate disasters, financing a massive fossil fuel infrastructure project is not just irresponsible – it is an assault on our planet and our people,” the statement read. Mamdoo warned that EACOP would worsen climate collapse, fueling more droughts, floods and extreme weather events, which disproportionately impact African communities that have contributed least to global emissions.
Beyond its environmental consequences, the coalition also rejected EACOP’s promises of economic development as corporate propaganda. According to StopEACOP, tens of thousands of people have already been displaced to make way for the pipeline, facing loss of livelihoods, inadequate compensation and deteriorating socio-economic conditions. While Uganda’s oil is extracted, refined and consumed abroad, local communities are left to bear the environmental and social costs. The project, the statement asserted, is not for the benefit of the people but for the profit of TotalEnergies and its partners.
The coalition called on all remaining financial institutions to refuse to fund what they described as a reckless and exploitative venture. “Those who have already provided financing have chosen the side of destruction, exploitation, and corporate greed,” the statement continued. “They have made themselves enemies of the people of Uganda, Tanzania, the East African region, the African continent and all of humanity.”
The pipeline has already been widely rejected by global financiers. To date, 43 banks and 29 (re)insurance companies have ruled out supporting EACOP. Even major investors in TotalEnergies have been pressuring the fossil fuel giant to abandon the project. Nordea, one of the largest Nordic banks and among the top 60 private banks globally, recently announced that in addition to banning project finance for EACOP, it is no longer purchasing new shares or bonds in Total because of the project. The bank is now considering further steps, including fully excluding Total from its remaining portfolio.
The limited funding secured by EACOP has done little to quell doubts about the project’s viability. The coalition noted that the financial institutions now involved in its partial funding – particularly the smaller ones – are neither capable of financing the entire project nor able to provide it with the legitimacy it seeks. While StopEACOP expressed concern over these banks’ involvement, it remained confident that the majority of the world’s financial institutions would continue to recognise EACOP as an environmental and human rights catastrophe.
As opposition to the project grows, grassroots activists, impacted communities and climate defenders worldwide stand against EACOP. The coalition urged any potential lenders who have yet to distance themselves from the pipeline to do so publicly, ensuring that local communities are protected and the long-term sustainability of the planet is upheld.
