Financing Emissions

Standard Bank faces pressure on Total’s east Africa pipeline as rivals pull out

By David Whitehouse

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Posted on February 9, 2022 10:49

Standard Bank is becoming increasingly isolated as rival South African lenders turn away from financing the East African Crude Oil Pipeline (EACOP).

France’s TotalEnergies and the state-owned China National Offshore Oil Corporation (CNOOC) signed the final investment decision for EACOP, which planned to run from Hoima in Uganda to Tanga port in Tanzania, on 1 February. Standard Bank’s domestic competitors ABSA, Nedbank and Investec have all distanced themselves from the project, as has the African Development Bank.

French media have reported that none of the country’s largest banks will take part, and France’s largest insurer Axa won’t touch it. FirstRand, South Africa’s second-largest bank, in January told BankTrack, a Netherlands-based NGO which monitors global bank financing activity, that it will not finance the project.

Standard Bank is using an independent environmental and social advisor who has visited the project area and will issue a “full due diligence report” in coming months, a spokesperson for the bank told The Africa

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