Chad

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

Chad - In Short.

Overview of Chad

Chad emerged from a collection of powerful states that controlled the Sahelian belt starting around the 9th century. These states focused on controlling trans-Saharan trade routes and profited mostly from the slave trade. The Kanem-Bornu Empire, centered around the Lake Chad Basin, existed between the 9th and 19th centuries, and during its peak, the empire controlled territory stretching from southern Chad to southern Libya and included portions of modern-day Algeria, Cameroon, Nigeria, Niger, and Sudan. The Sudanese warlord Rabih AZ-ZUBAYR used an army comprised largely of slaves to conquer the Kanem-Bornu Empire in the late 19th century. In southeastern Chad, the Bagirmi and Ouaddai (Wadai) kingdoms emerged in the 15th and 16th centuries and lasted until the arrival of the French in the 19th and 20th centuries. France began moving into the region in the late 1880s and defeated the Bagirmi kingdom in 1897, Rabih AZ-ZUBAYR in 1900, and the Ouddai kingdom in 1909. In the arid regions of northern Chad and southern Libya, an Islamic order called the Sanusiyya (Sanusi) relied heavily on the trans-Saharan slave trade and had upwards of 3 million followers by the 1880s. The French arrived in the region in the early 1900s and defeated the Sanusiyya in 1910 after years of intermittent war. By 1910, France had incorporated the northern arid region, the Lake Chad Basin, and southeastern Chad into French Equatorial Africa.   Chad achieved its independence in 1960 and saw three decades of instability, oppressive rule, civil war, and a Libyan invasion. With the help of the French military and several African countries, Chadian leaders expelled Libyan forces during the 1987 “Toyota War,” so named for the use of Toyota pickup trucks as fighting vehicles. In 1990, Chadian general Idriss DEBY led a rebellion against President Hissene HABRE. Under DEBY, Chad drafted and approved a constitution and held elections in 1996. DEBY led the country until April 2021 when he was killed during a rebel incursion. Shortly after his death, a group of military officials – led by former President DEBY’s son, Mahamat Idriss DEBY – took control of the government. The military officials dismissed the National Assembly, suspended the Constitution, and formed a Transitional Military Council while pledging to hold democratic elections in October 2022. Chad faces widespread poverty, an economy severely weakened by low international oil prices, and rebel and terrorist-led insurgencies in the Lake Chad Basin. Additionally, northern Chad has seen several waves of rebellions since 1998. In late 2015, the government imposed a state of emergency in the Lake Chad Basin following multiple attacks by the terrorist group Boko Haram, now known as ISIS-West Africa. In mid-2015, Boko Haram conducted bombings in N’Djamena. In late 2019, the Chadian government also declared a state of emergency in the Sila and Ouaddai regions bordering Sudan and in the Tibesti region bordering Niger where rival ethnic groups are still fighting. The army has suffered heavy losses to Islamic terror groups in the Lake Chad Basin. In March 2020, ISIS-West Africa fighters attacked a Chadian military camp in the Lake Chad Basin and killed nearly 100 soldiers; it was the deadliest attack in the history of the Chadian military.
Value
Country Full Name
Chad
Country Code
TCD
Region
Sub-Saharan Africa
Income Group
Low income
Currency Unit
GDP
10829076802
Population
16425859
Land Area
1259200
Net National Income Per Capita
457.0569641
GDP per Capita (PPP)
1602.358424

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

Chad - Economic

Economy of Chad

Chad’s landlocked location results in high transportation costs for imported goods and dependence on neighboring countries. Oil and agriculture are mainstays of Chad’s economy. Oil provides about 60% of export revenues, while cotton, cattle, livestock, and gum arabic provide the bulk of Chad’s non-oil export earnings. The services sector contributes less than one-third of GDP and has attracted foreign investment mostly through telecommunications and banking.Nearly all of Chad’s fuel is provided by one domestic refinery, and unanticipated shutdowns occasionally result in shortages. The country regulates the price of domestic fuel, providing an incentive for black market sales.Although high oil prices and strong local harvests supported the economy in the past, low oil prices now stress Chad’s fiscal position and have resulted in significant government cutbacks. Chad relies on foreign assistance and foreign capital for most of its public and private sector investment. Investment in Chad is difficult due to its limited infrastructure, lack of trained workers, extensive government bureaucracy, and corruption. Chad obtained a three-year extended credit facility from the IMF in 2014 and was granted debt relief under the Heavily Indebted Poor Countries Initiative in April 2015.In 2018, economic policy will be driven by efforts that started in 2016 to reverse the recession and to repair damage to public finances and exports. The government is implementing an emergency action plan to counterbalance the drop in oil revenue and to diversify the economy. Chad’s national development plan (NDP) cost just over $9 billion with a financing gap of $6.7 billion. The NDP emphasized the importance of private sector participation in Chad’s development, as well as the need to improve the business environment, particularly in priority sectors such as mining and agriculture.The Government of Chad reached a deal with Glencore and four other banks on the restructuring of a $1.45 billion oil-backed loan in February 2018, after a long negotiation. The new terms include an extension of the maturity to 2030 from 2022, a two-year grace period on principal repayments, and a lower interest rate of the London Inter-bank Offer Rate (Libor) plus 2% – down from Libor plus 7.5%. The original Glencore loan was to be repaid with crude oil assets, however, Chad’s oil sales were hit by the downturn in the price of oil. Chad had secured a $312 million credit from the IMF in June 2017, but release of those funds hinged on restructuring the Glencore debt. Chad had already cut public spending to try to meet the terms of the IMF program, but that prompted strikes and protests in a country where nearly 40% of the population lives below the poverty line. Multinational partners, such as the African Development Bank, the EU, and the World Bank are likely to continue budget support in 2018, but Chad will remain at high debt risk, given its dependence on oil revenue and pressure to spend on subsidies and security.

Unemployment Rate

Inflation Rate

Chad - GDP Composition

GDP Composiiton & Value Added of Chad

Last Updated: Jan, 2021, Updated For 2020.

Chad - GDP, Value Added

Demographics of Chad

the population is unevenly distributed due to contrasts in climate and physical geography; the highest density is found in the southwest, particularly around Lake Chad and points south; the dry Saharan zone to the north is the least densely populated as shown in this population distribution map
Geographic Location

Central Africa, south of Libya

Races

Sara (Ngambaye/Sara/Madjingaye/Mbaye) 30.5%, Kanembu/Bornu/Buduma 9.8%, Arab 9.7%, Wadai/Maba/Masalit/Mimi 7%, Gorane 5.8%, Masa/Musseye/Musgum 4.9%, Bulala/Medogo/Kuka 3.7%, Marba/Lele/Mesme 3.5%, Mundang 2.7%, Bidiyo/Migaama/Kenga/Dangleat 2.5%, Dadjo/Kibet/Muro 2.4%, Tupuri/Kera 2%, Gabri/Kabalaye/Nanchere/Somrai 2%, Fulani/Fulbe/Bodore 1.8%, Karo/Zime/Peve 1.3%, Baguirmi/Barma 1.2%, Zaghawa/Bideyat/Kobe 1.1%, Tama/Assongori/Mararit 1.1%, Mesmedje/Massalat/Kadjakse 0.8%, other Chadian ethnicities 3.4%, Chadians of foreign ethnicities 0.9%, foreign nationals 0.3%, unspecified 1.7% (2014-15 est.)

Languages

French (official), Arabic (official), Sara (in south), more than 120 different languages and dialectsmajor-language

Religion

Muslim 52.1%, Protestant 23.9%, Roman Catholic 20%, animist 0.3%, other Christian 0.2%, none 2.8%, unspecified 0.7% (2014-15 est.)

Dependency & Expectancy of Chad

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

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Chad - Social Media Briefing

Chad - Social Media & Social Commerce

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Politics & Policies of Chad

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

ACP, AfDB, AU, BDEAC, CEMAC, EITI (compliant country), FAO, FZ, G-77, IAEA, IBRD, ICAO, ICCt, ICRM, IDA, IDB, IFAD, IFC, IFRCS, ILO, IMF, Interpol, IOC, IOM, IPU, ITSO, ITU, ITUC (NGOs), MIGA, MINUSMA, NAM, OIC, OIF, OPCW, UN, UNCTAD, UNESCO, UNIDO, UNOCI, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO

Import of Chad

Export of Chad

Import Destination

Export Destination