US lawmakers move to block IMF Central Africa support over oil fund dispute

Bate Felix and Wendell Roelf

Wed, Apr 9, 2025, 9:45 AM 4 min read

By Bate Felix and Wendell Roelf

DAKAR (Reuters) - U.S. lawmakers person introduced authorities that could artifact International Monetary Fund (IMF) enactment for immoderate Central African countries, successful an effort to defender billions of dollars that lipid companies indispensable acceptable speech for biology restoration.

The measure highlights a standoff betwixt overseas investors connected 1 side, and Central African monetary authorities trying to enforce tighter superior controls connected extractive industries to enactment up depleted reserves connected the other.

Introduced by U.S. Republican Representatives Bill Huizenga and Dan Meuser, the measure targets caller regulations imposed by the Bank of Central African States (BEAC), the determination cardinal bank, that necessitate planetary lipid companies (IOCs) to deposit the biology restoration funds into BEAC-controlled accounts.

The funds, estimated astatine betwixt 3 and 6 trillion CFA francs (approximately $5 cardinal to $10 billion) and presently held successful overseas banks, person been acceptable speech by IOCs operating successful the portion for aboriginal biology clean-up erstwhile accumulation ends.

Central African Economic and Monetary Community (CEMAC) subordinate states privation the funds moved to determination institutions to bolster their economies and overseas currency holdings.

The move, backed by the IMF and approved during an exigency acme of CEMAC heads of authorities successful Yaounde successful December 2024, is seen by determination governments arsenic a captious measurement successful addressing economical fragility.

According to BEAC's March 2025 monetary argumentation report, the implementation is expected to instrumentality effect from May 1, successful enactment with the summit's resolutions, with penalties of up to 150% of the restoration funds for non-compliance.

BEAC has besides suggested raising rates for repatriation to the portion of different funds, including for extractive companies' operational spending, presently acceptable astatine 35%.

Perenco, a privately-held French lipid institution with important operations crossed the region, said it was successful negotiations with determination stakeholders to scope an statement earlier the April 30 deadline.

"Perenco is already complying with the 35% repatriation of funds' rule, and each regulations presently successful place," a spokesperson said.

Other lipid companies successful the portion did not respond to requests for comments.

In Equatorial Guinea, the concern ministry has met large operators Marathon Oil, Chevron, Kosmos Energy and Vaalco Energy to sermon the issue, said 1 source.

DETERIORATING RESERVES

The six CEMAC members - Cameroon, Gabon, Chad, Equatorial Guinea, Central African Republic, and Republic of Congo - stock monetary policy, a currency, and the communal BEAC cardinal bank.