Overview

  • A landlocked Sahelian country in central Africa, Chad grapples with security challenges associated with conflicts in bordering countries as well as the impacts of climate change, which is exacerbating 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 December 1990. The new constitution, promulgated in 2018, allows the President to run for two additional consecutive terms of six years when his current term comes to an end in 2021.

    Legislative and municipal elections, which were postponed several times, are expected to be held in the first quarter of 2020.

    Economic Outlook

    • Chad joined the list of oil-producing countries in 2003 and since then its economy has been heavily dependent on oil. The country’s previously agrarian economy saw per capita GDP grow from about $497 in 2001/02 (which was less than half of the average in Sub-Saharan Africa) to almost $823 in 2017.
    • After two years of a deep recession caused by the drop in oil prices, the economy showed signs of recovery in 2018, with the GDP growth rate projected to reach 2.6% as a result of the rise in oil prices and in oil and agricultural production.
    • The external current account deficit fell from 6.6% to 4.7% between 2018 and 2019 as a result of the hike in oil prices and strong oil export performance. The government is continuing its fiscal accommodation efforts by mobilizing revenue and controlling recurrent costs.
    • In June 2018, Chad finalized the restructuring of its oil-collateralized loan with the Glencore petroleum company. This agreement and the planned clearance of arrears is expected to reduce the public debt-to-GDP ratio from 51.9% in 2017 to 41.2% in 2020. Nevertheless, the risk of external debt overhang remains high.
    • In the medium term, oil exports will remain a key driver of GDP growth. Moreover, the privatization of the public cotton company is expected to considerably improve the contribution of the agricultural sector to GDP growth.
    • Moderate growth is expected in 2019 owing to an anticipated drop in oil prices. However, the projected increase in oil production will stimulate investment and exports in 2020.
    • Chad’s economy remains fragile and is vulnerable to considerable risk, such as oil price volatility and regional insecurity. Chad would benefit from investment in key sectors, such as infrastructure, education, and health, to mitigate these risks.

    Social Context and Development Challenges

    • With more than 450,000 refugees from Sudan, the Central African Republic, and Nigeria, Chad continues to grapple with the consequences of tension in neighboring countries and hosts a high number of refugees, who represent approximately 4% of the country’s total population.
    • Although Chad had made progress on poverty reduction, with a decline in the national poverty rate from 55% to 47% between 2003 and 2011, the number of poor people is projected to increase from 4.7 million to 6.3 million between 2011 and 2019.
    • Chad occupies last place on the World Bank’s Human Capital IndexA child born in Chad today will be 29% less productive in adulthood than a child who received a quality education and benefited from appropriate health services. Moreover, 20% of Chadian children will not make it to their fifth birthday, and 40% of children suffer from stunting, which can have long-term implications for their cognitive development. Between the ages of 4 and 18, on average, children in Chad spend no more than five years in school.
    • Chad also has one of the highest maternal mortality rates in central Africa, with 856 deaths for every 100,000 live births.  This phenomenon is aggravated by the high number of early pregnancies (164.5 births per 1,000 adolescents aged 15 to 19), which often lead to complications for the adolescents.

    Last Updated: Oct 29, 2019

  • World Bank Group Engagement in Chad

    World Bank Group engagement in Chad is guided by a Country Partnership Framework (CPF) that is reassessed and renewed on average every four years. The current CPF covers the period 2016-2020. The World Bank will soon carry out an assessment of the economic and social situation in Chad to prepare its next development support strategy for Chad. Aligned with the government’s priorities, the current CPF aims to achieve the following:

    • Improve public resources management;
    • Boost agricultural productivity and value chains; and
    • Strengthen human capital (health, nutrition, education) and reduce vulnerability.

    Through the International Development Association (IDA), the World Bank Group is currently financing 11 national projects, for a total commitment of $358 million, and four regional projects totaling $127 million. To help Sahelian countries stabilize the region and expedite their development, the World Bank became a member of the Sahel Alliance, launched in July 2017, with the goal of enhancing coordination among partners to provide aid more rapidly and  effectively and better targeted to vulnerable zones.

    The International Finance Corporation(IFC), the private sector arm of the World Bank Group, has invested in the mobile telecommunications (Milicom) and health (Clinique Providence) sectors as well as in industries and services. In collaboration with the World Bank, IFC is helping the Government of Chad with the implementation of reforms needed to improve the business climate.

    IFC is also exploring the possibility of strengthening agricultural sectors such as cotton, gum Arabic, sesame, and livestock, as well as providing technical advisory services and  assistance to improve access to financing in Chad.

    Last Updated: Oct 29, 2019

  • Some of the results achieved with World Bank Group support include the following:

    HUMAN CAPITAL

    By mobilizing all stakeholders in society, the Sahel Women's Empowerment and Demographics Project (SWEDD) seeks to help girls, adolescents, and women living in difficult conditions blossom and achieve their full economic potential by giving them access to a quality education and to adequate reproductive, maternal and child health services.

    • Over 13,000 vulnerable girls have received support (e.g., school kits, housing, payment of school fees, academic support);
    • In three regions (Lac, Kanem, and Salamat), the number of girls attending secondary school increased by 23%, while the dropout rate has been cut in half;
    • 397 safe spaces in schools were created (targeting thousands of adolescent girls);
    • 168 women received training in renewable energies, and another 112 women were trained in the operation and maintenance of heavy agricultural machinery.

    The Chad Education Sector Reform Project (PARSET), which aims to improve teaching and learning in primary and secondary schools, achieved the following:

    • 500 classrooms were built and equipped;
    • Close to 3 million textbooks were procured and distributed to schools;
    • 20,000 pupils (60% of them girls) learned to read and write;
    • Close to 13,000 community teachers were trained;
    • A new national center for curriculum development (Curriculum Center) was created;
    • The overall rate of children attending school increased from 87% in 2003/04 to 96% in 2007/08.

    To establish a social protection system that targets the most vulnerable households, the social safety nets project will include cash transfers and cash-for-work activities.

    • In Bahr el-Ghazal, 1,550 households received non-conditional cash transfers, and 1,400 households received adaptive cash transfers to reduce food insecurity resulting from drought;
    • In Logone Occidental, 4,650 households received non-conditional cash transfers;
    • In N’Djamena, 9,000 poor households are receiving support through the cash-for-work program implemented in three municipal districts (7th, 8th, and 9th).

    ECONOMY AND FOOD SECURITY

    The Bank is partnering with the United Nations Food and Agriculture Organization (FAO) and World Food Program (WFP) to assist returnees and refugees from the Central African Republic and  host communities in the south of Chad through the Emergency Agriculture Production Support Project. A pilot initiative has been launched in partnership with the United Nations High Commissioner for Refugees (UNHCR) to promote the integration of two refugee camps (Gondje and Amboko) into the surrounding villages.

    The targeted food assistance component was implemented by the World Food Program (WFP) and achieved the following:

    • 32,460 beneficiaries (50% female) received food vouchers (against an initial target of 31,200)
    • 2,520 children between the ages of 6 and 59 months received nutritional supplements to combat moderate acute malnutrition;

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

    • 32,261 households (of 28,969 planned) received basic supplies (rainy season seeds, fertilizers, agricultural equipment, etc.) for market garden production during the dry season, as of December 31, 2018, resulting in a 91.62 % completion rate;
    • 10,996 associations were trained in production techniques as of December 31, 2018, for a 137.63% completion rate;
    • 10,000 households received a comprehensive technology transfer for agricultural production;
    • Market garden production increased 296.6%, from 10,000 to 29,664 metric tons;
    • 250 km of transhumance corridors were identified.

    Last Updated: Oct 29, 2019

  • The World Bank Group is an active member of the Financial and Technical Partners Committee (CPTF) that brings together most of the bilateral and multilateral development and humanitarian organizations operating in Chad with the goal of enhancing the coordination of interventions in the spirit of the Paris Declaration and the Accra and Busan Conferences on aid effectiveness.

    Last Updated: Oct 29, 2019

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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
For general information and inquiries
Edmond Badge Dingamhoudou
Communications Officer
+235 6612 7334
edingamhoudou@worldbank.org
Informations générales et renseignements
chadalert@worldbank.org