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, and 2011 elections. The electoral processes during these elections have, however, been controversial. While the opposition contested the results each time, its voice became louder during the last elections as civil society organizations joined to protest austerity measures. Although the term of the current legislature ended in March 2015, Deby has announced a further postponement of parliamentary elections for "budgetary reasons”.

    Deby was sworn-in for a fifth term in August 2016 during a public ceremony attended by 14 heads of state. Earlier in 2016, a special criminal court in Dakar, Senegal, had found Chad’s former president, Hissene Habre, guilty of crimes against humanity and sentenced him to imprisonment for life.

    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 $220 in 2001/02 (less than half of the average in Sub-Saharan Africa) to approximately $1,024 in 2014.

    However, the 2014 drop in oil price and the deterioration of the security situation led to a deeper recession in 2016, with poverty expected to rise to 39.8% by 2019. These changes reflect fiscal austerity and consequent cuts in public services, and loss of income caused by the disruption of cross-border trade in livestock. These trends were partially offset by modest increases in agriculture, which constitutes the primary sector of employment for nearly 3/4 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 4.6% in 2016 financed primarily through treasury bonds in the regional debt market, IMF disbursement, and budget support from donors. A recent increase in domestic debt has led to risks in debt sustainability. Hard currency rationing and substantial fiscal consolidation have reduced the external current account deficit. However, Chad’s international reserves continue to fall, representing barely a month’s worth of imports.

    Short- and Medium-Term Outlooks

    In the short-term, the government needs to raise more fiscal revenues 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, as well as providing military escorts to secure selected trade corridors that allow movement of goods and people, need to remain high on the agenda. Instability in oil revenue complicates fiscal management and budgetary planning. Regional instability is affecting economic activity by impacting trade, public expenditure, and private investment.

    Social Context

    In January 2015, Chadian troops joined Cameroonian and Nigerian to combat Boko Haram. Chad has been at the forefront of this operation to root out terrorism. Suicide bombings hit N’Djamena in June/July 2015, causing dozens of fatalities and injuries. Subsequent attacks have been sporadic.

    As the military campaign continues, humanitarian issues have emerged. Chad is hosting about 400,000 refugees from Sudan, the Central African Republic (CAR), and Nigeria, all of whom represent about 4% of the country’s 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 as changing weather patterns worsen their fate.

    Development Challenges

    Chad is ranked 185 out of 188 countries, according to the 2015 United Nations Development Program (UNDP) Human Development Index (HDI). Many Chadians still face severe deprivation, with most of the Millennium Development Goals 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. 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 the 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: Apr 20, 2017

  • World Bank Group Engagement in Chad

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

    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 covering June 2010 to June 2012. The main 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 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 of a donor conference in Paris in June 2014 to mobilize funds in order to bridge the financing gap of the 2013–2015 NDP. Moreover, the Bank is engaged in areas that fall within the framework of this plan and are consistent with the Country Partnership Framework (CPF 2016-20), which was approved by the World Bank Board of Executive Directors in December 2015.

    The World Bank Group portfolio consists of nine national International Development Association (IDA) operations totaling $365 million of commitments, four trust funds, and three regional IDA operations. 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. IFC is teaming up with the World 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, IFC is investing in mobile communications (Milicom) and private health service delivery.

    Last Updated: Apr 20, 2017

  • 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 whom are 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.

    Agriculture Production Support Project

    In response to food insecurity in Chad, the World Bank boosts agricultural investment to improve production. Approved in May 2012, Agriculture Production Support Project (PAPAT) support rural communities and producer organizations in increasing the production of selected crops and livestock species in selected areas of the recipient’s territory; 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 currently 113,685 (19% more than the initial target).
    • 31 micro-projects have been successfully completed (with about 153 more financed and in process) and 4 sub-projects for women's organizations had been financed and completed; 53 additional sub-projects are financed and still under execution.

    Macroeconomic Stability and Fiscal Consolidation

    In December 2016, an additional financing of the 2015 Development Policy Operation of $80 million has been agreed by Bank management under the Crisis Response Window (CRW) and allocated towards a budget support operation in order to maintain macro stability and improve public finance management (PFM) as the country continues to face a severe economic crisis due mainly to the oil price collapse and the costly operation against Boko Haram.

    Emergency Project to Assist Central African Republic (CAR) Refugees

    The Bank is partnering with the Food and Agriculture Organization (FAO) and the World Food Program (WFP) to assist returnees and refugees from the CAR crisis and host communities in the south of Chad. A new initiative is being launched in partnership with UNHCR to transform two pilot refugee camps (Gondje and Amboko) into integrated villages where all victims of forced displacement and local communities will be supported to engage in livelihood and sustainable economic activities that will help them take care of themselves.

    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 Supercereal Plus during a 2-month period) to combat moderate acute malnutrition.

    The agricultural production and livestock stabilization component is implementing by FAO:  

    • 5,000 households had received basic technology packages for garden production during the 2015/16 dry season.
    • An additional 10,000 households were targeted to receive for technology packages.

    Last Updated: Apr 20, 2017

  • The World Bank Group is an active member of the Financial and Technical Partners Committee (Comité des Partenaires Techniques et Financiers CPTF), which includes all United Nations agencies represented 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: Apr 20, 2017

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LENDING

Chad: Commitments by Fiscal Year (in millions of dollars)*

*Amounts include IBRD and IDA commitments


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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
Chad
Edmond Badge Dingamhoudou
Communications Officer
+235 6612 7334
edingamhoudou@worldbank.org
Washington
Michael Hamaide
Country Program Coordinator
+1-202-473-3933
Mhamaide@worldbank.org