Standard Bank Says Net Effect of East Africa Pipeline ‘Worth It’

(Bloomberg) – Standard Bank Group Ltd. Sim Tshabalala, Chairman of the Executive Officer, said the benefits of an oil pipeline in East Africa, the largest lenders in East Africa outweigh the environmental risks.

Totalenenergys SE’s 5 billion dollars of 1,443 kilometers (897 miles) East African Crude Oil Pipeline was built to carry the crude oil surrounded by land in Uganda to the shore for export, and encountered resistance from the environmental groups examining potential lenders. Among the competitors were Ugandan activists, European parliamentary members and environmental groups.

“Yes, there are environmental costs, but they are minimized and the net impact, the project is worth the now and in the future, East Africa has the right to economic development and people need energy, they need income,” he said.

The position of the bank chief contributes to a discussion that supports African governments who want to develop oil and gas resources to increase development against groups in the West, where fossil fuels are typically exported.

In July, Uganda’s oil authority is expected to end in the first half of the next year.

Three years later, Standard Bank in 2021 rented an independent consultant to decide to participate in the project by announcing that TSHABALALA would continue with the financing he said was “$ 100 million”.

In March, the project, Standard Bank, African Export Import Bank, Stanbic Uganda Ltd., KCB Bank Uganda Ltd. and the Islamic Company’s first tranquility for the development of the private sector.

Totalenenergies, according to a website for the project, has a 62% stock in Totalenenergies The Line, Tanzania Petroleum Development Corp. and Uganda National Oil Co.

Tshabalala, “Our focus is definitely directing the growth of Africa”, which means supporting a mixture of renewable and transition projects. “We are completely clear that African countries have the right and duty to use fossil fuels to get rid of poverty.”

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