Overview

  • Country Overview

    Since independence from France in 1960, Chad—a landlocked country in central Africa—has been plagued by instability from internal rivalries between ethnic groups, conflicts in neighboring countries, and the impact of climate change through desertification and the drying up of Lake Chad.

    Political Context

    President Idriss Deby Itno, and his party, the Patriotic Salvation Movement, have dominated Chadian politics since ascending to power in 1990. Deby won the 1996 elections—the first multi-party elections held in Chad—as well as the 2001, 2006, 2011, and 2016 elections. The electoral processes during these elections have, however, been controversial: the regime has faced growing public protests, rallying the youth, especially, since the April 2016 presidential elections.  are Demonstrations have become more frequent and have focused on a number of issues: the cost of living, budgetary austerity, corruption, impunity, and President Déby’s election for a fifth term. These demonstrations   are led by Chadians from specific social and professional categories (students, young unemployed graduates, teachers, and civil servants), and it has been a long time since social protest gained such momentum.

    Although the term of the current legislature ended in March 2015, President Idriss Deby announced (in February 2017) a further postponement of more than two years (for "budgetary reasons”) of parliamentary elections initially due in 2015. A lack of funds was blamed, as the protracted decline of oil prices has kept the economy in severe recession. In February 2018, the National Assembly voted to extend the mandate of city mayors for the same reason.

    Economic Overview

    Chad joined the list of oil-producing countries in 2003 and since then its economy has been heavily dependent on oil. The economy, previously agrarian, saw per capita GDP grow from about $497 in 2001/02 (which was less than half of the average in Sub-Saharan Africa) to about $967 in 2014.

    However, the combined effect of the 2014 drop in oil price and the weak security environment have left the country in deep recession, with poverty expected to rise to 39.8% by 2019. This is reflected in cuts in public expenditure, low foreign direct investment, and a loss of income caused by the disruption of cross-border trade with Nigeria in livestock. Nonetheless, there were modest increases in agriculture, which constitutes the primary sector of employment for nearly 75% of Chad’s working age population.

    Despite severe fiscal adjustment, the overall fiscal deficit (cash basis) increased slightly from 4.4% of non-oil GDP in 2014 to 4.9% in 2016. This was financed through treasury bonds in the regional debt market, IMF disbursement, and budgetary support from donors. The increase in public debt has led to the risk of debt distress: hard currency rationing and substantial fiscal consolidation had reduced the external current account deficit from 11.3% of GDP in 2015 to 5.2% in 2017, but Chad’s official reserves continue to fall, representing barely a month’s worth of imports as of 2017.

    Short- and Medium-Term Outlooks

    In the short-term, the government needs to raise more fiscal revenue while reducing expenditure. Prospects are difficult because oil prices remain low, export volumes constrained, and the government needs to repay the Glencore oil sales advances.

    In the medium-term, the establishment of a stabilization fund, economic diversification, and ways to mitigate regional security risks need to remain high on the agenda, as well as providing military escorts to secure selected trade corridors that allow movement of goods and people. Instability in oil revenue complicates fiscal management and budgetary planning, and regional instability is affecting economic activity by impacting trade, public expenditure, and private investment.

    Social Context

    Chadian government employees saw a drop in their monthly salary in January because of the new Budget Act 2018, which stripped away some of their bonuses and allowances. As a result, the Labor Union Platform called an unlimited general strike in the public sector. In March, the trade unions and government signed an agreement that put an end to the strike. The government committed to back pay on public salaries but obtained a three-month moratorium (February, March, April) from banks on loans. The two parties also agreed on the suspension of the census and to study other measures as an alternative way to save 30 billion CFA francs on the wage bill.

    Chad is hosting about 400,000 refugees from Sudan, the Central African Republic (CAR), and Nigeria, who represent about 4% of the country’s total population. Returnees and internally displaced people also need humanitarian assistance: host communities have shared their land, food, and houses, and hope to see their lives improved as well. The plight of these people is exacerbated by the climate with changing weather patterns worsening their fate.

    Development Challenges

    Chad is ranked far down on the 2015 United Nations Development Program (UNDP) Human Development Index (HDI), at 185 out of 188 countries. Many Chadians face severe deprivation; most of the Millennium Development Goals were not met by 2015. Between 2003 and 2011, Chad achieved moderate but significant progress in poverty reduction, with the national poverty rate falling from 55% to 47%. However, with this current economic and financial crisis, poverty could increase, and the absolute number of poor is projected to rise from 4.7 million to 6.3 million between 2012 and 2019.

    Progress on non-monetary poverty presents a mixed picture, with gains in some areas offset by losses in others. According to a joint Demographic and Household Survey (DHS), and Multi-Indicators Clusters Surveys (MICS) undertaken in early 2015, infant mortality has decreased from 91% in 2005–2009 to 72% in 2010–2014. Child mortality has also decreased from 79% to 65%, while maternal mortality fell from 1,099 per 100,000 births to 860 per 100,000 births.

    Last Updated: May 17, 2018

  • World Bank Group Engagement in Chad

    Chad joined the World Bank in 1963. Since then, the Bank has financed more than 50 development projects in it, supporting the country to achieve sustainable economic growth.

    The Bank Group’s engagement in Chad in the past decade has largely taken the form of support for the Chad–Cameroon Pipeline Project (CCPP). The Bank contributed to the financing of the pipeline through three credits, subject to an agreement on the use of the oil revenues. In 2010, the World Bank’s Board of Executive Directors approved an Interim Strategy Note (ISN) for engagement in Chad from June 2010 to June 2012. The objectives were to re-establish fruitful collaboration and dialogue between state and non-state actors, and expand the Bank’s knowledge base for stronger engagement in the future.

    Following the implementation of the 2010–2012 Interim Strategy Note, the government prepared a National Development Plan (NDP) for the 2013–2015 period. The Bank helped organize a donor conference in Paris in September 2017 to mobilize funds to bridge the financing gap, and  is engaged in areas that fall within the framework of the plan consistent with the Country Partnership Framework (CPF 2016-20), approved by the World Bank Board of Executive Directors in December 2015.

    In July 2017, the Sahel Alliance was established by the EU, France, Germany, UNDP, the African Development Bank, and the World Bank, to assist with regional stabilization and the accelerated development of the G5 Sahel countries. Spain, Italy, and the United Kingdom have since become members, while other partners are expected to join.

    The World Bank Group’s portfolio consists of six national International Development Association (IDA) operations totaling $142 million worth of commitments, four trust funds, and four regional IDA operations totaling $127 million. The pipeline includes three national projects, with a total commitment of $97 million.

    International Finance Corporation (IFC)

    IFC commitments in Chad currently stand at about $63 million. The IFC is teaming up with the Bank to support a programmatic approach to the investment climate. In addition to facilitating access to finance via extending its risk sharing facility to selected commercial banks (ECOBANK and ORABANK) and rolling out a leasing program in Chad, the IFC is investing in mobile communications (Milicom) and private health service delivery.

    Last Updated: May 17, 2018

    • Education Reform

    The second phase of the Chad Education Sector Reform Project (PARSET), approved in June 2013, aims to improve teaching and learning in primary and secondary schools in selected areas. The following are the results obtained during the first phase

      • 400 classrooms were built and equipped;
      • 2,606,300 textbooks were procured and distributed to schools;
      • 20,000 people (60% of them women) were taught to read and write;
      • 11,700 community teachers were trained; and
      • A new national center for curriculum development was created,
      • and the overall rate of children attending school increased from 87% in 2003/2004 to 96% in 2007/2008.

    Intermediate results for the second phase are:

    ·         70 classrooms built and equipped;

    ·         465,000 textbooks procured and distributed to schools;

    ·         300 teachers trained.

    Agriculture Production Support Project

    The Bank boosts agricultural investment to improve production, with the Agriculture Production Support Project (PAPAT) supporting rural communities and producer organizations to increase the production of selected crops and species of livestock in selected areas; and the use of sustainable land and water management practices in climate vulnerable ecosystems.

    •  
      • A 20% increase in agricultural production in the intervention areas since the beginning of the project (95% of the final target) and a 15% increase in large and small ruminants.
      • The number of direct beneficiaries is 113,685 (19% more than the initial target).
      • 31 micro-projects have been completed (with about 153 more financed and underway), and 4 sub-projects for women's organizations financed and completed; 53 additional sub-projects are still being executed.

    Macroeconomic Stability and Fiscal Consolidation

    In December 2016, additional financing of the 2015 Development Policy Operation of $80 million was agreed by Bank under the Crisis Response Window (CRW), and allocated budget support to maintain macro stability and improve public finance management (PFM) as the country continued to face severe economic crisis, due mainly to the low oil price and the cost of military operations against Boko Haram.

    Emergency Project to Assist Central African Republic (CAR) Refugees

    The Bank is partnering with the Food and Agriculture Organization (FAO) and World Food Program (WFP) to assist returnees and refugees from CAR and their host communities in the south of Chad. A new initiative has been launched in partnership with the United Nations High Commissioner for Refugees (UNHCR) to transform two pilot refugee camps (Gondje and Amboko) into integrated villages.

    ·         The targeted food assistance component was implemented by World Food Program (WFP).

    •  
      • 32,460 beneficiaries (50% female) received food vouchers (against a target of 31,200)
      • 2,520 children between the ages of 6 and 59 months received nutritional supplements (200 grams daily of Super Cereal Plus during a 2-month period) to combat moderate acute malnutrition.

    ·         The agricultural production and livestock stabilization component is being implemented by FAO:  

    •  
      • 5,000 households received basic technology packages for garden production during the 2015/16 dry season.
      • 10,000 households received technology packages for agricultural production
      • About 3 to 4 months are being covered during the lean season
      • Garden production has been introduced in several areas

    ·         250 kms of transhumance corridors have been tagged.

    Last Updated: May 17, 2018

    • The World Bank Group is an active member of the Financial and Technical Partners Committee (Comité des Partenaires Techniques et Financiers CPTF) that includes all United Nations agencies in Chad as well as the African Development Bank (AfDB), the European Union, the Swiss Agency for Development and Cooperation, France, Germany, and the United States. 

    Last Updated: May 17, 2018

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Additional Resources

Country Office Contacts

Main Office Contact
Quartier Beguinage
Av Idriss Miskine
B.P. Box 146
N'Djamena, Tchad
+235-2252-3247
For general information and inquiries
Edmond Badge Dingamhoudou
Communications Officer
+235 6612 7334
edingamhoudou@worldbank.org
Informations générales et renseignements
chadalert@worldbank.org