By Bate Felix and Wendell Roelf
DAKAR (Reuters) – U.S. lawmakers have introduced legislation that could block International Monetary Fund support for some Central African countries, in an effort to guard billions of dollars that oil companies must set aside for environmental restoration.
The bill highlights a standoff between foreign investors on one side and Central African monetary authorities trying to enforce tighter capital controls on extractive industries to shore up depleted reserves on the other.
Introduced by U.S. Republican Representatives Bill Huizenga and Dan Meuser, the bill targets new regulations imposed by the Bank of Central African States (BEAC), the regional central bank, that require international oil companies (IOCs) to deposit the environmental restoration funds into BEAC-controlled accounts.
The funds, estimated at between 3 and 6 trillion CFA francs (approximately $5 billion to $10 billion) and currently held in foreign banks, have been set aside by IOCs operating in the region for future environmental clean-up once production ends.
Central African Economic and Monetary Community (CEMAC) member states want the funds moved to regional institutions to bolster their economies and foreign currency holdings.
The move, backed by the IMF and approved during an emergency summit of CEMAC heads of state in Yaounde in December 2024, is seen by regional governments as a critical step in addressing economic fragility.
According to BEAC’s March 2025 monetary policy report, the implementation is expected to take effect from May 1, in line with the summit’s resolutions, with penalties of up to 150% of the restoration funds for non-compliance.
BEAC has also suggested raising rates for repatriation to the region of other funds, including for extractive companies’ operational spending, currently set at 35%.
Perenco, a privately-held French oil company with significant operations across the region, said it was in negotiations with regional stakeholders to reach an agreement before the April 30 deadline.
“Perenco is already complying with the 35% repatriation of funds’ rule, and all regulations currently in place,” a spokesperson said.
Other oil companies in the region did not respond to requests for comments.
“We are aware of the proposed U.S. legislation and will monitor any developments,” an IMF spokesperson told Reuters, adding that it has been encouraging negotiations.
“Staff stands ready to assess the nature of restoration funds for oil sites once the authorities and extractive companies share their final agreement,” the spokesperson said.
