Monday 3rd November 2025
by inAfrika Newsroom
EACOP financing cleared an early milestone this year as the developer closed a first allocation with banks and regional lenders. The company named Afreximbank and several commercial banks among participants, while talks continue on further tranches. Moreover, officials still target first oil exports later this decade.
However, pressure is rising on multiple fronts. Investor activists pushed one major European asset manager to cut exposure over alleged rights abuses tied to upstream sites. In parallel, civic groups escalated an appeal at the East African Court of Justice that challenges the project under regional law. Those figures and claims could not be independently confirmed.
The pipeline will run about 1,443 km from Uganda’s Lake Albert fields to Tanzania’s port of Tanga. Backers say the line is critical for monetising reserves and funding budgets. Consequently, governments frame the project as a jobs, FX, and infrastructure story, not only an energy story.
Why it matters: EACOP financing sits at the junction of energy security, debt, and climate politics. Uganda and Tanzania want stable export cash and pipeline tariffs; investors want credible ESG assurances; and courts are testing where regional law draws the line. Therefore, financing terms and insurance will price those risks in real time.
For Africa, the signal is mixed. If capital holds, the corridor could catalyse roads, ports, and storage in northern Tanzania while lifting Uganda’s revenues. However, if legal and reputational risk rises, borrowing costs can climb and timelines slip, which weakens fiscal plans.
Execution is now the pivot. Land acquisition, community agreements, and environmental controls must meet lender covenants. Moreover, the operator needs transparent incident reporting and strong grievance mechanisms to keep banks and insurers onside. If those pieces lock, EACOP financing can stay on track despite louder opposition
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