Stanbic Defies Energy Transition, Promises To Finance Oil And Gas Developments

By Leilah Bbaale

Stanbic Bank says it will give capital for oil and gas developments in Uganda. The Bank’s stand comes amidst growing opposition against fossil fuels including oil and gas in favor of renewable energy.

Stanbic, part of Standard Bank Group says it can offer up $70 million to a single company investing in the oil and gas sector in Uganda.

The Bank’s Head of Power and Infrastructure Henry Kamuntu says it is crucial that Ugandan companies get prepared to participate the upcoming developments as oil companies prepare for the flow oil from the Albertine.

It is estimated that between 15- 20 billion dollars will be spent to develop the oil and gas sector in the next five years in the country. About six billion or 30% of the money has been earmarked for the local contractors.

According to Kamuntu, Stanbic alone controlled almost 20% of the local balance sheet capacity in 2020.
He said generally there is sufficient sector leaning headroom to support the oil and gas sector given the growing loan to deposit ratio. The banking sector figures for 2020 indicated that the total loan to deposit ratio was about 59.4%

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