OPINION
In the last week of March, African banks including Afreximbank, Standard bank of South Africa, Stanbic bank Uganda, KCB bank Uganda and the Islamic Corporation for the development of the private sector provided the first tranche of financing to the EACOP project.
The action attracted mixed reactions, as the project developers were excited of the huge funding, the environmental activists were greatly disappointed in the African banks. At first, the European banks had wanted to fund the EACOP project but after discovering that it will violate people’s rights, damage the environment and exacerbate climate change, they pulled out.
So far, over 40 banks globally including 28 European banks have ruled out from financing the project. It is so unfortunate that the banks which claim to be working towards the prosperity of African people are the ones financing projects such as EACOP that will exacerbate the climate crisis.
Of late, many Ugandans experienced the dire impacts of climate crisis after Kampala city experienced one of its worst floods in history. Regrettably, seven people including two minors died following the heavy downpour and hundreds of travellers were left stranded as roads were impassable due to flooding. Flooding simply means a condition that occurs when water becomes uncontrollable.
Prior, floods were known to be triggered by natural disasters, however, these days, it is no longer the case. Floods are induced by human activities such as urbanization, deforestation, swamp reclamation, unsustainable land use practices, poor waste management and climate change.
Now that the climate crisis is already causing havoc including death in the African countries such as Uganda, it is shameful to find African banks funding a project that will escalate the impacts of climate change. According to the Notre Dame Global Adaptation Initiative (2021), Uganda ranks as the 13th most vulnerable country in the world to climate change and 160th out of 192 nations in readiness to confront the threat.
Financing projects such as EACOP for a country that is ranked among the last countries in readiness to confront climate change does not make sense when there are better projects worth investing in.
For-instance, Inclusive Green Economy Network-East Africa (IGEN-EA), that unites over thirty-six private sector players and civil society organisations from Uganda, Kenya and Tanzania recently launched a research brief on the tourism potential of Greater Masaka. The brief highlighted key tourism sites in the sub-region that need to be developed including Musambwa Island, Bigo- bya- mugenyi, St. Charles-Karoli Lwanga site, lake Nabugabo and others.
I therefore call upon the financial institutions that could be with the plans of financing the EACOP project to desist and make investments in green industries through financing green economic activities such as clean energy, tourism and conservation, natural resource management and forestry and agriculture and fishing because they are environmental friendly and sustainable in nature.
By Hildah Nsimiire,
The writer is an Environmental Activist.
