Turning oil into opportunity: Stanbic Bank’s role in Uganda’s first oil journey

As Uganda approaches the long-anticipated milestone of first oil, it does so at a moment of contradiction in the global energy narrative.

On one hand, the world is accelerating towards a low-carbon future, with growing consensus on the need to scale up renewable energy.

On the other hand, recent geopolitical shocks, including tensions in the Middle East, have exposed the fragility of global energy systems and the enduring centrality of oil to economic stability.

If the global economy were ready to transition at pace, this would have been the moment. Instead, what we have seen is a sharp reminder that oil remains deeply embedded in the architecture of global growth.

It is within this context that Uganda’s energy journey must be understood.

A balanced path in a polarised debate

In the years leading up to the first oil, Uganda’s ambitions have faced resistance from sections of the international community, particularly over investments such as the East African Crude Oil Pipeline.

Critics have called for a faster shift away from fossil fuels. These concerns are not without merit. Climate change is real, urgent, and demands decisive global action.

However, the pathway to a low-carbon future is neither linear nor uniform. For emerging economies, especially in Africa, the transition must be pragmatic, sequenced, and inclusive.

At Stanbic Bank Uganda and across the Standard Bank Group, the position has been consistent: support a just and patient energy transition.

This means investing in renewables while recognising the present-day role of fossil fuels in unlocking growth, industrialisation, and energy access.

Uganda’s first oil is not a contradiction of the energy transition. It is part of it.

From resource extraction to economic transformation

The true measure of Uganda’s oil and gas sector will not be the number of barrels produced, but the extent to which it drives structural transformation across the economy.

Stanbic’s commitment to projects such as the East African Crude Oil Pipeline is anchored in its purpose: “Uganda is our home, we drive her growth”.

This goes beyond financing infrastructure. It is about enabling a wider ecosystem of value creation.

Through the establishment of a dedicated oil and gas department, the bank has built the institutional capacity needed to support a complex and highly regulated sector.

More importantly, it is working to ensure that the economic benefits of oil extend beyond extraction.

A nation’s resources belong to its people. The opportunity is to ensure that oil revenues circulate within the economy, creating enterprises, jobs, and long-term prosperity.

Building local capacity for lasting impact

Local content remains central to this ambition.

Through Stanbic Business Incubator Limited, in partnership with the African Development Bank, more than 200 Ugandan enterprises have attained internationally recognised ISO certification.

This is a critical step in transforming local firms from peripheral participants into competitive suppliers within the oil and gas value chain. It is how resource wealth becomes national wealth.

There is no doubt that oil presents a significant economic opportunity. The International Monetary Fund projects that Uganda’s GDP growth could rise sharply with the onset of production.

However, experience from other countries shows that without strong institutions and prudent financial management, resource wealth can introduce volatility.

Stanbic’s role, therefore, extends beyond capital provision. It includes risk management, transactional banking, and advisory services to help both public and private sector players navigate price fluctuations, manage foreign exchange exposure, and build long-term resilience.

Its platinum sponsorship of the annual Oil and Gas Convention, organised by the Uganda Chamber of Energy and Minerals in partnership with the Ministry of Energy and Mineral Development and the Uganda National Oil Company, reflects the belief that sustained dialogue is essential to sector maturity.

As the industry moves from planning to execution, collaboration between government, investors, and local enterprises will be critical if Uganda is to realise the promise of first oil.

Beyond first oil

Energy independence is not an endpoint. It is a foundation.

Uganda’s first oil should be seen not as a departure from the future, but as a bridge to it. Revenues generated today can and must be reinvested in renewable energy, infrastructure, and human capital to power the next phase of growth.

The global energy transition will take time. Until it is fully realised, oil will remain a central pillar of economic activity.

Uganda is stepping into that reality with clarity and conviction.

At Stanbic Bank, we are proud to stand alongside the nation, not only financing its energy future but helping to shape it. We are not just banking on the oil. We are banking on Uganda.