Dar es Salaam. Zanzibar President Hussein Ali Mwinyi has urged East African Community (EAC) member states to fast-track the establishment of a dedicated petroleum fund to address financing challenges and accelerate the development of the region’s oil and gas industry.
Speaking at the closing ceremony of the 11th East African Petroleum Conference and Exhibition 2025 (EAPCE’25) in Dar es Salaam, which gathered over 1,400 stakeholders from within and outside the region, Dr Mwinyi emphasised the need for financial independence in developing petroleum projects.
“Inadequate funding remains a major bottleneck in the region’s petroleum industry. Establishing a petroleum fund will help us navigate financial hurdles caused by global activism and shifting priorities of traditional financiers,” he said.
Dr Mwinyi noted that environmental activists worldwide have been pushing financial institutions to halt funding for fossil fuel projects, making it difficult for African nations to secure resources for their oil and gas ventures.
“At a time when global activists intensify their opposition to financing fossil fuel projects and export credit agencies increasingly hesitate to support them, we must ask ourselves: How do we, as partner states, overcome these challenges? How can we leap over these barriers to advance our petroleum resources and implement our energy transition plans effectively?” he posed.
His remarks resonate with past opposition faced by the East African Crude Oil Pipeline (EACOP) project, which encountered strong resistance from environmental groups in France and other parts of the world.
Dr Mwinyi cited the Africa Petroleum Producers’ Organisation (APPO) and the African Export-Import Bank (Afreximbank) as a model for securing sustainable funding.
The two entities have joined forces to establish the Africa Energy Bank (AEB) to address the emerging financing crisis in the African oil and gas sector which has been worsened by the global transition to renewable energy.
“Africa has long depended on traditional financiers, but many of them are withdrawing support, particularly in Africa, citing climate change concerns. We need our funding mechanisms to ensure we can continue developing our resources responsibly,” he said.
Dr Mwinyi further emphasised the need for implementing more cross-border oil and gas infrastructure to maximize the region’s petroleum potential.
He pointed out that initiatives like EACOP should be complemented by additional projects such as the Tanzania-Kenya and Tanzania-Uganda pipelines to enhance regional energy integration.
“The East African Crude Oil Pipeline Project (EACOP) is a landmark project, and we need to see more initiatives of its kind materializing. We must aggressively pursue the development of complementary pipelines and storage facilities,” he said.
To enhance oil and gas discoveries in the region, Dr Mwinyi called on EAC states to prioritize local expertise and strengthen investment opportunities.
“Let us utilise our local experts, engage multi-client companies, and deploy every means to unlock our hydrocarbon resources,” he urged.
Tanzania’s Deputy Prime Minister and Minister of Energy, Dr Doto Biteko, echoed the sentiments, emphasising the role of regional cooperation in unlocking East Africa’s energy potential.
“This conference has been an essential platform for discussing various investment opportunities in the oil and gas sector. We now have a clearer understanding of how East African countries can collaborate and utilize their energy resources to improve livelihoods,” Dr Biteko said.
Energy economist Dr Michael Kamau supported the call for an EAC petroleum fund, arguing that the region needs financial stability to develop its vast energy potential.
“With the growing global focus on renewable energy, East Africa cannot afford to wait for international financiers to dictate the pace of its development. A petroleum fund would provide a reliable source of capital for infrastructure projects, research, and workforce training,” he said.
As outlined in the EAC Vision 2050, there is no better time than now to push for the establishment of a petroleum fund.
Article 114 of the EAC Treaty emphasises the need for enhanced cooperation in managing natural resources efficiently for the mutual benefit of partner states.
“With this fund in place, we will be able to support our projects, invest in training, research, and innovation, and ensure that our people are given priority in oil and gas initiatives,” Dr Mwinyi concluded.
With growing global pressure against fossil fuels, East Africa faces a critical decision: either secure its financing mechanisms or risk stagnation in its petroleum sector. By establishing a dedicated petroleum fund, the region can take control of its energy future and drive sustainable economic growth.
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