Anne Juuko, Chief Executive of Stanbic Bank Uganda Stanbic defies energy transition, promises to finance oil and gas developments Kampala, Uganda | THE INDEPENDENT | 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 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.
“It is a very exciting period. I’m one of those who strongly believe that if this opportunity had come even two or three years ago, I don’t believe that we would have been holistically ready as a country for the opportunity to participate in it,” said Henry Kamuntu.
Kamuntu said he believes the delays have created room for individuals to create the capacity, to build themselves for this opportunity. And this, he added, also extends to the banking sector.
According to Kamuntu, Stanbic alone controlled almost 20% of the local balance sheet capacity in 2020. “We have at least a single limit of seventy million dollars. So we can lend up to$70 million of our local balance sheet to any local contractor looking to participate in this transformational opportunity” Kamuntu revealed
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%
Stanbic is part of the wider standard Bank group that has representation in twenty African countries. Stanbic also has representation in international markets that include London, New York and Beijing.
“In our ability to support the local content players, our understanding of all these international players who are coming to play in our oil and gas opportunity, we have relationships and our ability to draw these relationships to support these International Oil companies with understanding the local markets play. […]