In response to the will of the CEMAC States to strengthen their external reservations by integrating funds for the restoration of mining and oil sites, a bill was introduced to the American Congress. It aims to suspend any intervention of the United States within the IMF in favour of the countries of the sub-region. In the background there has been a strategic confrontation between African monetary policies and Western economic interests.
Bill Huizenga, American parliamentarian, elected republican of Michigan
The lower chamber of the American Congress recorded, on March 25, 2024, a bill on the suspension of the United States of America “to any action of the International Monetary Fund concerning the Member States of the Monetary Economic Community of Central Africa”. The law introduced by the elected representative of Michigan, Bill Huizenga, aims to force the IMF to be more looking at the management of external reserves of the 6 countries which constitute this economic zone (Cameroon, Gabon, Chad, CAR, Equatorial Guinea, Congo).
6,000 billion FCFA
Concretely, the American legislator, calls into question the will of the countries of the region to count in their raw exchange reserves, the provisions made up by oil and mining companies to restore sites after operations (also called the RES funds). Indeed, in a desire to reconstruct their external reserves and preserve the stability of their currency (CFA franc), the CEMAC heads of state decided, on December 16, 2024 in Yaoundé, to put pressure on the extractive companies so that they repatriated the funds.
To this end, the BEAC, the Regional Central Bank had been mandated to sign before April 30, 2025, sequestal account conventions with these companies, with the possibility of imposing sanctions on those which would not sign before this date. A study carried out earlier by the BEAC estimates that the RES funds could generate up to 6,000 billion FCFA ($ 9.6 billion) in the CEMAC country, which represents a good safety cushion for their current transactions.
Exchange reserves/res
On the American side, it is estimated that the RES funds are “exclusively assigned to the costs of catering work”. What is more, “they do not meet the IMF criteria in terms of exchange reserves” and their classification as such would make their owner lose control. Reason: exchange reserves are “easily available” and “controlled” by the monetary authorities of the countr(y) (ies). “The IMF has the responsibility of specifying to countries what are assets are eligible and not eligible to count in the raw exchange reserves of a country, so that countries can develop appropriate financial policies,” said the bill.
Lobbying
In a statement published on April 09 N.J. Ayuk, the executive president of the African Energy Chamber was delighted with this development indicating that it was a “crucial” stage to force BEAC to reform its exchange policy. “We understand the position of the American Congress and, as people who have always called for a pragmatic and sensible approach to these questions, we believe that we have the obligation to protect investors while encouraging growth, employment and opportunities for CEMAC countries.”
The fact that this case has been brought to the US Congress, is the reflection of active lobbying that multinational oil and mining have been carrying out against the application of the exchange of exchange reserves since 2019. There are among these, large American companies in the energy sector such as Chevron, Exxonmobil, VaalcoEnergy and many others. In addition to American companies, other major players such as Totalenergies, Trident Energy, BW Offshore, Eni and Perenco also operate in the region.
Veto
With a 16.73 % voting right to the IMF board of directors, the United States enjoyed a de facto right of veto. This means that if the text is validated by the congress, the budget support of the fund to CEMAC will be largely compromised exacerbating budgetary imbalances and external to which the member countries face. As of January 31, 2025, CEMAC exchange reserves were estimated at 7,515 billion FCFA representing an external currency coverage 74.9 %. 67.1 % represent external assets in view, 25.4 % of other external assets in foreign currency managed by the BEAC markets room, 4.5 % of gold collecting and 2.7 % of assets with the IMF.