Connect with us

MEDIA FOR CHANGE NETWORK

Uganda: StopEACOP Campaign Condemns Standard Bank’s Decision to Fund EACOP

Published

on

Kampala — The StopEACOP Campaign is appalled by Standard Bank’s decision to help finance the East African Crude Oil Pipeline (EACOP) project and condemns this decision in the strongest possible terms. This decision follows a years-long review process, during which environmental and social concerns raised by numerous stakeholders were evidently ignored.

The $5 billion EACOP project, spearheaded by TotalEnergies, aims to transport crude oil from Uganda’s oil fields to a terminal in Tanga, Tanzania. Despite significant opposition from affected communities and environmental and human rights groups, Standard Bank, Africa’s largest lender, has decided to support this disastrous project.

Standard Bank chair Nonkululeko Nyembezi stated in a recent interview that they had conducted comprehensive environmental and social due diligence. However, the claim contradicts the project’s grave climate, environmental and human rights risks. The decision of Standard Bank is also at odds with the assessment of its peers, who have ruled out support for the EACOP for climate, environmental, and social concerns.

Standard Bank’s decision ignores local opposition and human rights abuses 

In the last month alone, 11 pipeline critics have been arrested in Uganda and Tanzania after expressing their concerns about the project. In addition, one of the community leaders from the Kingfisher region in Uganda was abducted by the Uganda Peoples’ Defense Forces, bringing condemnation from the UN Special Rapporteur on Human Rights Defenders. Standard Bank’s untimely announcement of their decision to finance EACOP, in the midst of a brutal crackdown on human rights, environmental and land defenders in Uganda and Tanzania, illustrates their level of detachment from the realities and experiences of communities on the ground and calls into question their claim to have done thorough due diligence.

Environmental and human rights groups have persistently highlighted the potential hazards of the controversial EACOP, including severe impacts on wildlife habitats, the displacement of communities, and the exacerbation of climate change through increased greenhouse gas emissions. Many field investigation reports, including a recent Human Rights Watch report, have also documented and denounced the inadequate compensation and significant disruption experienced by residents displaced by the pipeline’s construction. Against this backdrop, Standard Bank’s decision to finance EACOP shows blatant disregard for the voices and rights of the communities in Uganda and Tanzania who will bear the brunt of the environmental and social devastation caused by this project.

Standard Bank cannot feign ignorance in relation to the concerns surrounding EACOP. It has faced consistent pressure from communities and climate and social justice organisations and groups in South Africa who have demonstrated outside the bank’s offices in Rosebank, Johannesburg on numerous occasions. These demonstrations, including a large protest with hundreds of participants on the day of the bank’s AGM in 2023, a 3-day-long occupation of the bank’s entrance in September of the same year, and weekly pickets held outside the bank’s parking lot by Extinction Rebellion, sought to bring the demands and experiences of EACOP-affected communities to their attention.

Standard Bank has refused to engage in meaningful and constructive dialogue and instead, its response has been characterized by repression and increased militarisation. The South African Police Service has also intervened to protect the interests of the bank and has arrested peaceful demonstrators on two occasions. It is a stark demonstration of Standard Bank’s prioritization of profit over people and the planet and its lip-service commitment to constructive dialogue and meaningful engagement with frontline communities and other key stakeholders.

Standard Bank is also ignoring clear business risk

The decision to bankroll the project also casts doubt on Standard Bank’s assessment of the business and reputational risks stemming from the risks to local communities, environment and climate posed by the project.

Standard Bank’s decision comes after major financiers and insurers from North America, Europe, and Japan have publicly ruled out support for EACOP due to global outcry over the harmful project. The expected finance from China has also been delayed, while the Chinese state-owned insurers and banks have taken prolonged time to assess the outstanding risks. As a result, the EACOP project is facing significant challenges and  project sponsors are reportedly in a cash crisis to fill the funding gap, which threatens to stall the construction.

These delays come as a result of the immense pressure that potential financiers have come under from communities, civil society, the international community and even shareholders and investor groups who express grave concern over the catastrophic socio-economic, biodiversity and climate change risks of the project.

Standard Bank’s decision to finance the EACOP project starkly contradicts industry trends, as leading banks and insurers have distanced themselves from this controversial initiative. This decision exposes Standard Bank to significant risks, including the potential for stranded assets, especially as the global economy transitions towards clean energy solutions. Furthermore, with Uganda already facing a severe debt crisis, worsened by the country’s oil induced borrowing spree, the environmental and social costs associated with EACOP could precipitate an economic disaster for the people of Uganda as well as financiers and their shareholders who opt to engage with this project.

It is clear that investing in EACOP threatens the stability of vulnerable communities and jeopardizes the financial health and reputational integrity of those who support it. A 2022 report assessing the EACOP and associated oil fields against internationally recognized environmental and human rights standards for financial institutions found numerous violations, putting banks at risk if they sign on to support the project. The assessment, undertaken by the Africa Institute for Energy Governance (AFIEGO), Inclusive Development International (IDI) and BankTrack, suggests that the project is not in compliance with many of the criteria set forth in the Equator Principles and the Environmental and Social Performance Standards of the International Finance Corporation (IFC), two internationally recognized standards for responsible finance.

We demand that Standard Bank review and rescind its decision to finance the EACOP project immediately. While it may be too late for Standard Bank to redeem its supposed commitment to people and the planet, there is still time for other potential lenders, particularly Chinese state-owned banks, to demonstrate their dedication to human rights and sustainability by refusing to support EACOP. We call upon the global community to continue its unwavering support for the StopEACOP campaign and the communities on the frontlines. It is not too late to halt this disastrous project and prevent the extensive environmental, social, and economic damage it promises to inflict.

Quotes

“For years, we have campaigned tirelessly against Standard Bank, bringing the grievances and aspirations of impacted communities directly to their doorstep time and time again. Each time, we are met either with deafening silence or with outright violence from an institution that has shown itself to be truly heartless and utterly indifferent to the well-being of ordinary people. Let it be known that this announcement will not deter us. We will continue to stand in solidarity with the communities affected by EACOP and will escalate our actions against Standard Bank in the coming months.”  – Zaki Mamdoo, StopEACOP Campaign Coordinator

“Standard Bank prides itself on financing Africa’s development. However, the bank’s decision to finance the EACOP, not to mention its financing of other fossil fuel projects across Africa, earns the institution the title of an anti-people and an anti-development bank. Fossil fuel projects like EACOP that cause livelihood losses, enslave Ugandans by worsening indebtedness and drive all of us deeper into the climate crisis should not be financed by any bank.”  – Diana Nabiruma, Senior Communications Officer, AFIEGO

“Standard Bank is contributing to the devastation of our communities including through the immense loss of land and livelihood. They have chosen to ignore the plight of our people and to support our exploitation and suffering at the hands of greedy multinational corporations. This is a decision that places them squarely on the wrong side of history and which marks them as an institution with no regard for human rights and justice.” –  Richard Senkondo, Executive Director at the Organization for Community Engagement, Tanzania.

Original Source:350Africa.org  Via allafrica.com

Continue Reading

MEDIA FOR CHANGE NETWORK

COP16 in Riyadh: World Leaders Commit $12.15B to Combat Land Degradation and Drought

Published

on

The 16th Conference of the Parties (COP16) to the United Nations Convention to Combat Desertification (UNCCD) has concluded in Riyadh, marking the largest and most inclusive conference in the organization’s history.

With over 20,000 participants, including global leaders, scientists, private sector representatives, and civil society groups, the conference laid out bold strategies to address land degradation, drought, and desertification.

The highlight of the conference was the announcement of the Riyadh Global Drought Resilience Partnership, which secured $12.15 billion in pledges to support drought-affected regions in 80 vulnerable countries, including Uganda.

This funding aims to strengthen food security, promote sustainable land management, and protect ecosystems from the growing impacts of climate change.

For Uganda, where over 40% of the population relies on agriculture, this commitment offers hope for combating the devastating effects of prolonged droughts in the cattle corridor and other semi-arid regions.

In a move to enhance global preparedness for droughts, COP16 launched an AI-powered Drought Observatory, a groundbreaking tool designed to provide real-time data and predictive analysis.

Uganda, with its ongoing challenges in monitoring and responding to climate impacts, stands to benefit immensely from this technology, which will enable the government to anticipate and respond effectively to severe drought conditions.

This could mitigate the recurring food insecurity and water scarcity issues faced by communities in Karamoja and other drought-prone areas.

H.E. Abdulrahman Abdulmohsen AlFadley, COP16 President, in his closing remarks, stated:

“This session marks a turning point in raising awareness and strengthening efforts to restore land and build resilience. The Riyadh Declaration sends a clear message: the time for decisive action is now.”

For Uganda, this turning point is critical as the country battles desertification in key ecosystems like the cattle corridor and Lake Kyoga basin, which threaten biodiversity, agriculture, and livelihoods.

With only 6% of land restoration funding currently coming from private sources, COP16 introduced the Business for Land initiative to increase private sector engagement in land restoration.

Over 400 companies participated in discussions on sustainable finance, environmental, social, and governance (ESG) practices, and strategies to mobilize private investment for land restoration projects.

Uganda, which has already seen successful private-sector participation in conservation projects such as carbon trading and reforestation in areas like Mabira Forest, could tap into this global momentum to attract more investments for land restoration initiatives.

To promote inclusivity, COP16 placed women and youth at the forefront of the fight against land degradation. Key outcomes included:

The launch of youth-led initiatives to drive grassroots climate action.

Adoption of gender-responsive policies to ensure equitable participation in land restoration efforts.

For Uganda, these measures are especially relevant.

The country has a youthful population and strong women-led grassroots organizations that are already leading efforts to promote climate resilience through tree planting and sustainable farming practices.

The resolutions adopted at COP16 provide a framework for scaling up these local efforts while ensuring inclusivity and equitable representation.

Scientific data presented at COP16 painted a dire picture of the planet’s land resources:

77.6% of Earth’s land is drier today than it was 30 years ago.

40.6% of the planet is now classified as drylands, threatening ecosystems, food security, and livelihoods.

For Uganda, this data underscores the urgent need for action.

With parts of the country already facing desertification and reduced rainfall patterns, the findings highlight the importance of restoring degraded lands like Nakasongola and tackling deforestation in critical areas such as Mount Elgon.

As COP16 wraps up, attention now shifts to COP17, which will take place in Mongolia.

Delegates will continue discussions on establishing a global drought regime, building on the momentum and progress achieved in Riyadh.

For Uganda, the outcomes of COP16 represent a pivotal moment.

The historic commitments, technological innovations, and inclusive policies offer the country an opportunity to address its growing environmental challenges.

If implemented effectively, these resolutions could help Uganda restore its degraded lands, safeguard livelihoods, and build resilience against future climate shocks, positioning the country as a leader in sustainable land management in Africa.

Source: nilepost.co.ug

Continue Reading

MEDIA FOR CHANGE NETWORK

Church of Uganda’s call to end land grabbing is timely and re-enforces earlier calls to investigate quack investors and their agents fueling the problem.

Published

on

By Witness Radio team.

The Church of Uganda has called for the government to intervene immediately to address the escalating issue of land grabbing in Uganda.

The Archbishop of the Church of Uganda, Rt, made the urgent appeal. Rev. Steven Kazimba Mugalu, during an event in Wamala Village, Nansana Municipality, Wakiso District, on Saturday, December 7. He urged the government to take responsibility for protecting its citizens’ rights, particularly the right to own and occupy land, by strengthening laws and regulations governing land ownership and use.

The Archbishop noted that local communities are being forcibly removed from their land without receiving compensation or alternative sources of income. In many cases, Ugandan communities face eviction or compulsory land acquisition under the guise of developmental projects, leaving many marginalized.

Bwowe Ismael’s case is an example. He is a father of 20 and a person with a disability (PWD) living in Bethlehem in the Kyotera district. In an interview with Witness Radio, he revealed that his land was forcefully taken when he demanded fair compensation for it, which is affected by the East African crude oil pipeline project (EACOP). He shared that the State authorities intimidated, arrested, and charged him with false offenses, such as aggravated robbery, accusing him of sabotaging the government project.

“This is a loss for the entire nation, not just the impacted individuals and families,” the Archbishop said. He added,” We implore the government to set up an open and transparent procedure for acquiring land and to guarantee that all people and communities impacted by land grabbing receive just compensation.”

The Church of Uganda’s call for government intervention on land grabbing comes less than a month after Witness Radio released a shocking report on land evictions in Uganda. The report revealed that nearly four land evictions are reported weekly, affecting approximately 15,126 people and threatening 5,060.12 hectares of land nationwide. It further estimated that 2,160 Ugandans face evictions daily to make way for investments, with 723 hectares of land at risk of being seized daily.

The Witness Radio report “Forced Land Evictions in Uganda” covered 90 land eviction cases over six months from January to June 2024, affecting at least 363,021 Ugandans and putting over 121,000 hectares of land at risk of land grabs.

Evictions have not only disrupted people’s lives but have also contributed to increased food insecurity in Uganda, violence, and, in many cases, death and the criminalization of those who resist or face eviction. According to the report, corporate entities such as Agilis Partners Ltd, Great Seasons Ltd, East African Crude Oil Pipeline (EACOP), New Forest Company (NFC), and Formosa Ltd, along with the impunity of government officials, wealthy individuals, multinational corporations, and influential figures, including Army Generals, are the leading perpetrators.

The report further highlighted that local and foreign investors were involved in 67 cases, government agencies in 12, and tribal and family land conflicts in 11 cases.

Poor people are often the primary targets and most affected by land grabbing as those behind these evictions hold significant power. During the same period, Witness Radio documented 65 attacks on land and environmental defenders (LEDs) and climate activists who were challenging illegal land evictions and corporate environmental harm in Uganda.  Most (37) evictions were enforced by armed gangs on behalf of evictors, with 25 cases by Uganda police. In contrast, 5 cases involved the participation of some soldiers of the Uganda Army, whereas 4 cases involved private security companies.

Kazimba’s call for government intervention echoes Witness Radio’s report, which also emphasized the urgent need for government action to address the land-grabbing crisis, respect human rights, uphold the rule of law, ensure compliance with directives on land evictions issued by relevant authorities, and closely monitor their implementation.

Continue Reading

MEDIA FOR CHANGE NETWORK

Three-quarters of Earth’s land became permanently drier in last three decades: UN

Published

on

Continue Reading

Resource Center

Legal Framework

READ BY CATEGORY

Facebook

Newsletter

Subscribe to Witness Radio's newsletter



Trending

Subscribe to Witness Radio's newsletter