StopEACOP Coalition has passionately condemned the partial financing of the controversial East African Crude Oil Pipeline (EACOP) by some financial institutions.
The coalition, a collective of environmental and civil society organizations has accused the financial institutions involved of enabling what they call a “catastrophic assault” on the environment and local communities.
The announcement by EACOP Ltd. claimed partial financial which does not disclose the loan amounts committed by the five banks were conspicuously withheld.
The banks involved are Afreximbank, Standard Bank of South Africa, Stanbic Bank Uganda, KCB Bank Uganda and the Islamic Corporation for the Development of the Private Sector (ICD) that have now positioned themselves on the frontlines of a global climate controversy.
These institutions have long faced scrutiny with previous funding intentions sparking fierce backlash from Ugandan and Tanzanian civil society groups.
At a time when the planet is grappling with escalating climate disasters, the decision to bankroll a massive fossil fuel infrastructure project has been met with outrage.
“This is not just irresponsible, it is an outright betrayal of the people and the planet,” Zaki Mamdoo, StopEACOP Campaign Coordinator.
“EACOP will exacerbate climate collapse, deepening droughts, floods and extreme weather events that disproportionately affect African communities who have contributed the least to this crisis.”
The coalition argues that EACOP’s hype promises of economic development are little more than corporate propaganda.
Tens of thousands of people have already been displaced to make way for the pipeline often with inadequate compensation leaving many in worsening socio-economic conditions.
TotalEnergies and its partners stand accused of prioritizing profit over the welfare of local communities.
Uganda’s oil reserves alongside potential exploitation in the Democratic Republic of Congo and South Sudan are primarily destined for refining and consumption abroad.
Meanwhile, the environmental and social costs fall squarely on the shoulders of local populations.
The partial financing announcement comes against a backdrop of growing global resistance.
To date, 43 banks and 29 (re)insurers have ruled out support for EACOP. Even major investors in TotalEnergies are distancing themselves.
Nordea, one of the largest Nordic banks recently announced it is not purchasing new shares or bonds in Total due to its involvement in EACOP.
“They’ve tried to paint this as a step forward but it only highlights how isolated they are in the global financial community.”
StopEACOP and its allies are calling on other potential financiers to publicly distance themselves from the project.
“This is a moment of moral reckoning. Any institution that finances EACOP is financing destruction, exploitation and the betrayal of future generations,” the coalition stated.
The few entities now involved in the project’s partial funding particularly the smaller ones, lack the financial muscle to see the pipeline to completion. More importantly, they fail to provide the legitimacy EACOP desperately seeks.
As the battle against EACOP rages on, communities, environmental activists and concerned citizens worldwide are refusing to bow to corporate greed.
With mounting evidence of human rights abuses and environmental degradation, the call for sustainable development and transparency has never been louder.
“This isn’t just about stopping a pipeline, it’s about standing up for people, the planet and the principle that no one should profit from the destruction of our future.”
