Uganda secures first tranche of $5 billion EACOP funding

Uganda's East African Crude Oil Pipeline (EACOP) has successfully secured its first tranche of financing from a consortium of banks, including Standard Bank and KCB Bank Uganda, as part of a $5 billion project aimed at transporting crude oil from Uganda to Tanzania. This milestone is significant amidst challenges in securing debt financing, especially after several Western banks withdrew support due to environmental concerns. The project is part of a larger $15 billion energy initiative led by TotalEnergies and China's CNOOC, focusing on oil discoveries near Lake Albert. To bolster financing, Uganda's Energy Minister has engaged with potential Chinese investors, deemed crucial for the project's completion. Despite the financial progress, the EACOP faces strong opposition from environmental activists and local communities worried about its ecological impact and possible displacement. Overall, securing funding is a critical step towards advancing Uganda's oil export ambitions despite mounting criticisms.