U.S. lawmakers have introduced a bill that could hinder the International Monetary Fund (IMF) from supporting several Central African countries amid a growing dispute over the management of environmental restoration funds tied to the oil sector.
Republican Representatives Bill Huizenga and Dan Meuser are backing the legislation, which targets new capital control measures imposed by the Bank of Central African States (BEAC), the central bank for the Central African Economic and Monetary Community (CEMAC). These regulations mandate that international oil companies (IOCs) deposit environmental clean-up funds into BEAC-managed accounts rather than foreign banks.
The funds—estimated between 3 and 6 trillion CFA francs (approximately Ksh.647 billion to Ksh.1.2 trillion)—are earmarked for future environmental rehabilitation once oil production ends. However, U.S. lawmakers argue these funds are contractually restricted and should not count as gross foreign exchange reserves. They claim the IMF has misled CEMAC countries by endorsing BEAC’s approach, potentially jeopardizing billions of dollars in U.S. energy investments.
The proposed legislation would bar the U.S. Treasury from endorsing any IMF programs involving CEMAC countries unless the IMF formally excludes these funds from reserve calculations. If enacted, the bill could restrict IMF support to countries like Cameroon and the Republic of Congo, which depend heavily on such assistance.
CEMAC members including Cameroon, Gabon, Chad, Equatorial Guinea, Central African Republic, and Republic of Congo are under pressure to stabilize their economies and boost foreign reserves. In December 2024, regional heads of state approved the BEAC plan at an emergency summit in Yaounde, urging compliance by May 1, 2025, with penalties for non-compliance reaching up to 150% of the restoration funds.
Oil firms, including Perenco, have been in talks with regional authorities. While Perenco says it complies with current rules, others like Chevron and Marathon Oil are still in discussions.
The IMF, while encouraging dialogue, has yet to clarify its position on the bill’s implications. In a recent report, the IMF warned that without economic reforms, some CEMAC nations could face debt levels near 100% of GDP and critical reserve shortages by 2029.
