Facilitating Oil & Gas
Uganda’s nascent Oil & Gas sector in Uganda holds a lot of promise for our economic future. With just 30% of the Abertine Graben explored so far and 3.5 million Barrels discovered, of which 1.5 is recoverable, oil has the undeniable potential to transform Uganda’s economy.
Stanbic has been a key player in driving the industry forward by facilitating the huge transactions needed to develop the initial Oil related infrastructure. Our relationship with our largest shareholder ICBC has been key to making this possible given the size of its balance sheet as the World’s largest bank. To date the bank has provided billions of shillings worth of Letter of Credit, bid bonds and Bank guarantees both for local and international companies operating in the sector.
Training and Expertise Stanbic Incubator project
As part of our commitment towards supporting the Governments National content agenda the bank decided to help address one of the biggest impediments towards the participation of local companies in the Oil and Gas sector, long term business sustainability. Statistics prove that whilst Uganda is one of the most entrepreneurial countries in the world most businesses don’t live long enough to celebrate their second birthdays. To help overcome this challenge in February 2018 Stanbic Bank launched a business incubator centre that will train local SME’s who are interest in participating within the sector on:- long term business planning, financial management, how to source capital and attain/maintain international standards. 155 SME are being targeted in 2018 for the first phase of the programme which is expected to graduate an average of XXX annually once the programme is scaled up.
Other Oil & Gas initiatives
In 2016 in a major development for the district’s financial sector Stanbic moved and upgraded its branch in Hoima to ensure it will be capable of handling the massive volumes business required in the region as the country moves to first oil. The branch located on Hoima road features an expanded banking hall capable of handling hundreds of customers a day, an executive business lounge and two ATM machines.
In addition Stanbic has also organized training workshops and seminars aimed at creating capacity and a greater understanding/awareness of the opportunities available for Ugandan companies.
Our participation in the Tanga Pipeline project
"Stanbic Bank Uganda was appointed alongside Japan’s Sumitomo Mitsui Banking Corp. As joint financial adviser for the 1,445-kilometer (898-mile) pipeline. The 3 billion USD pipeline will connect Uganda’s Hoima oilfields in the west to the port of Tanga in neighbouring Tanzania.