As Uganda inches closer to joining the ranks of oil-producing nations, one project remains at the heart of its ambitions: the East African Crude Oil Pipeline (EACOP).
Stretching 1,443 kilometers from the oil fields of mid-western Uganda to the Tanzanian port of Tanga, EACOP is one of Africa’s most ambitious energy infrastructure projects. And now, thanks to a newly secured tranche of financing, that ambition looks increasingly within reach.
A Major Milestone: First Tranche of External Financing Secured
EACOP Limited recently announced the successful closure of its first tranche of external financing, a critical step toward delivering the US$5 billion pipeline. The deal is backed by a consortium of financiers, including Stanbic Bank Uganda, its parent Standard Bank Group, KCB Bank Uganda, Egypt’s Afreximbank, and Saudi Arabia’s Islamic Corporation for the Development of the Private Sector (ICD).
According to EACOP Limited, this milestone reflects growing confidence in the project’s viability and signals a new era of public-private collaboration in regional infrastructure development.
“The successful closing of this first tranche of external financing represents a significant milestone for EACOP and its shareholders,” the company said in a statement.
From Blueprint to Reality: Tracking the Project’s Progress
Since the signing of the Final Investment Decision (FID) in February 2022, momentum has picked up. Pipes are being hauled from Greece and China to Tanzania, and laying work has begun across a 207 km stretch. The pipeline is expected to reach 50% completion by the end of 2025, with first oil forecasted for 2027.
The project’s shareholders include TotalEnergies (62%), Uganda National Oil Company (15%), Tanzania Petroleum Development Corporation (15%), and CNOOC International (8%) — a cross-border coalition blending technical muscle with national interest.
Economic Impact on the Region
Beyond the steel and concrete, EACOP is already showing signs of impact:
• 8,000+ jobs created in Uganda and Tanzania
• 400,000 man-hours of training provided
• US$500 million spent locally, boosting small businesses and supply chains
But with opportunity comes scrutiny. Civil society groups and international environmental organizations have raised concerns over displacement, ecological risks, and long-term sustainability.
The Role of Banks: Catalyst or Enabler?
While Stanbic Bank Uganda has emerged as a prominent face of the financial deal, it’s one part of a broader multinational financing puzzle. The syndicate includes regional and global financial institutions, each performing due diligence and aligning with various environmental, social, and governance (ESG) criteria.
A senior banking analyst based in Nairobi commented: “These banks are not just funders — they’re risk managers. Their involvement shows the project has cleared some of the toughest financial and regulatory hurdles on the continent.”
For Stanbic Bank Uganda, EACOP is not just another project. It aligns with the bank’s strategic commitment to powering Uganda’s growth sectors — especially energy, infrastructure, and agriculture.
Yet, questions remain: Is this kind of mega-infrastructure finance sustainable? Can Uganda ensure transparent revenue management when oil starts to flow? How will communities along the pipeline benefit in the long term?
What Lies Ahead?
EACOP is undeniably a bold vision — one that could transform Uganda’s economic trajectory or entrench it in fossil-fuel dependency. For now, the focus remains on execution, community engagement, and environmental safeguards.
As the financing unfolds and construction picks up pace, Uganda stands at a critical juncture — where infrastructure, investment, and inclusion must intersect. Whether EACOP becomes a triumph or a test case will depend not just on pipelines and petroleum, but on policy, people, and the power of accountability.