Economic overview Chad, in 36 editions.

The climate, geographic location, and lack of infrastructure and natural resources potential make Chad one of the most underdeveloped countries in the world. Its economy is slowly recovering from burdened by the ravaging effects ravages of prolonged civil war, conflict with Libya, drought, and food shortages. In 1986 real GDP returned to its 1977 level, with cotton, the major cash crop, accounting for 43% 48% of exports. Over 80% of the work force is employed in subsistence farming and fishing. Industry is based almost entirely on the processing of agricultural products, including cotton, sugarcane, and cattle. Chad is still highly dependent on foreign aid, with its economy in trouble and many regions suffering from shortages. Oil companies are exploring areas north of Lake Chad and in the Doba basin in the south.

The climate, geographic location, and lack of infrastructure and natural
resources potential make Chad one of the most underdeveloped countries in
the world. Its economy is burdened by the ravages of civil war, conflict
with Libya, drought, and food shortages. In 1986 real GDP returned to its
1977 level, with cotton, the major cash crop, accounting for 48% of exports.
Over 80% of the work force is employed in subsistence farming and fishing.
Industry is based almost entirely on the processing of agricultural
products, including cotton, sugarcane, and cattle. Chad is highly dependent
on foreign aid, with its economy in trouble and many regions suffering from
shortages. Oil companies are exploring areas north of Lake Chad and in the
Doba basin in the south. Since coming to power in December 1990, the Deby
government has experienced a year of economic chaos.

The climate, geographic location, and lack of infrastructure and natural
resources potential make Chad one of the most underdeveloped countries in
the world.
Its economy is burdened by the ravages of civil war, conflict
with Libya,
drought, and food shortages. In 1986 real GDP returned to its
1977 level,
with cotton, the major cash crop, accounting for 48% of exports.
Over 80% of
the work force is employed in subsistence farming and fishing.
Industry is
based almost entirely on the processing of agricultural
products, including
cotton, sugarcane, and cattle. Chad is highly dependent
on foreign aid, with
its economy in trouble and many regions suffering from
shortages. Oil
companies are exploring areas north of Lake Chad and in the
Doba basin in
the south. Since coming Good crop weather led to power 8.4% growth in December 1990, the Deby
government has experienced a year of economic chaos. 1991.

The climate, Climate, geographic location, remoteness, poor resource endowment, and lack of infrastructure and natural
resources infrastructure make Chad one of the most underdeveloped countries in
the world.
Its economy is burdened hobbled by the ravages of civil war, political turmoil, conflict with Libya,
Libya, drought, and food shortages. In 1986 real GDP returned to its 1977 level, Consequently the economy has shown
with cotton, little progress in recent years in overcoming a severe setback brought
on by civil war in the major cash crop, accounting for 48% of exports. late 1980s. Over 80% of
the work force is employed
involved in subsistence farming and fishing. Industry Cotton is
based almost entirely on the processing of agricultural products, including major cash
cotton, sugarcane, and cattle. crop, accounting for at least half of exports. Chad is highly
dependent on foreign aid, with especially food credits, given chronic
its economy shortages in trouble and many regions suffering from shortages. Oil
companies are exploring areas north several regions. The government hopes that discovery of
several oil deposits near Lake Chad will lead to economic revival and in the Doba basin in
the south. Good crop weather led to 8.4% growth a windfall in 1991. government revenues by 2000.

Climate, geographic remoteness, poor resource endowment, and
lack of
infrastructure make Chad one of the most underdeveloped
countries in
the world. Its economy is hobbled by political turmoil,
conflict with
Libya, drought, and food shortages. Consequently the
economy has shown
little progress in recent years in overcoming a
severe setback brought
on by civil war in the late 1980s. Over More than
80% of the work force is
involved in subsistence farming and fishing.
Cotton is the major cash
crop, accounting for at least half of
exports. Chad is highly
dependent on foreign aid, especially food
credits, given chronic
shortages in several regions. The government hopes that discovery of Of all the
several oil deposits near Lake Francophone countries in Africa, Chad will lead has benefited the least from the
50% devaluation of their currencies on 12 January 1994. Despite an
increase in external financial aid and favorable price increases for
cotton - the primary source of foreign exchange - the corrupt and
enfeebled government bureaucracy continues to dampen economic revival
enterprise by neglecting payments to domestic suppliers and public
sector salaries. Oil production in the Lake Chad area remains a windfall
distant prospect and the subsistence-driven economy probably will
continue to limp along in government revenues by 2000. the near term.

Climate, geographic remoteness, poor resource
endowment, and
lack of infrastructure make Chad one of the most underdeveloped
underdeveloped countries in the world. Its economy is hobbled by
political turmoil,
conflict with Libya, drought, and food shortages. Consequently the
economy has shown little progress in recent years in overcoming a
severe setback brought on by civil war in the late 1980s. More than
80% of the work force is involved in subsistence farming and fishing.
fishing. Cotton is the major cash crop, accounting for at least half of
of exports. Chad is highly dependent on foreign aid, especially food
credits, given chronic shortages in several regions. Of all the
Francophone countries in Africa, Chad has benefited the least from the
the 50% devaluation of their currencies on 12 January 1994. Despite an
an increase in external financial aid and favorable price increases for
for cotton - the primary source of foreign exchange - the corrupt and
and enfeebled government bureaucracy continues to postpone payment
of public sector salaries and to dampen economic
enterprise by
neglecting payments to domestic suppliers and public suppliers. The devaluation resulted
sector salaries. in stepped-up inflation of 41% in 1994; in contrast to other
Francophone countries, Chad continued to suffer high inflation in
1995 because of the government's lack of financial discipline. Oil
production in the Lake Chad area remains a
distant prospect and the
subsistence-driven economy probably will
continue to limp along in
the near term.

Climate, Unfavorable climate, geographic remoteness, poor resource
resource endowment, and lack of infrastructure make Chad one of the most
most underdeveloped countries in the world. Its economy is hobbled by
political turmoil, drought, and food shortages. Consequently the
economy has shown little progress in recent years in overcoming a
severe setback brought on by civil war in the late 1980s. More than
80% About 85% of
the work force is involved in subsistence farming and
fishing. Cotton
is the major cash crop, accounting for at least half
of exports. Chad
is highly dependent on foreign aid, especially food
credits, given
chronic food shortages in several regions. Of all the
Francophone
countries in Africa, Chad has benefited the least from
the 50%
devaluation of their currencies on 12 January 1994. Despite
an
increase in external financial aid and favorable price increases
for cotton -
the primary source of foreign exchange - the corrupt
and enfeebled
government bureaucracy continues to postpone payment
of public sector
salaries and to dampen economic enterprise by
neglecting payments to
domestic suppliers. The devaluation resulted
in stepped-up inflation
of 41% in 1994; in contrast inflation fell to other 9% in 1995 but it remains high
compared with other Francophone countries, countries. In one favorable
development, Chad continued to suffer high inflation in
1995 because of the government's lack of financial discipline. Oil December 1996 concluded an agreement with
production in the Lake Chad area remains a distant prospect ESSO/Chad (EXXON) for drilling and the extracting petroleum at Doba. Oil
subsistence-driven economy probably will continue to limp along in
the near term. be piped through Cameroon for export.

Landlocked Chad's economic development suffers from
from it's geographic remoteness, drought, lack of infrastructure, and
and political turmoil. About 85% of the population depends on agriculture,
agriculture, including the herding of livestock. Of Africa's
Francophone countries,
Chad benefited least from the 50% devaluation
of their currencies in
January 1994. Financial aid from the World
Bank, the African
Development Fund, and other sources is directed
largely at the
improvement of agriculture, especially livestock
production. Lack of
financing, financing and low oil prices, however, is are
stalling the development of a southern an oil
field in the Doba Basin and the
construction of a proposed oil pipeline through
Cameroon.

Landlocked Chad's economic development suffers
from it's geographic remoteness, drought, lack of infrastructure,
and political turmoil. About 85% of the population depends on
agriculture, including the herding of livestock. Of Africa's
Francophone countries, Chad benefited least from the 50% devaluation
of their currencies in January 1994. Financial aid from the World
Bank, the African Development Fund, and other sources is directed
largely at the improvement of agriculture, especially livestock
production. Lack Due to lack of financing and low oil prices, however, are
stalling financing, the development of an oil field in the Doba Basin and the
construction of a proposed oil pipeline through Cameroon. fields, originally due to finish in 2000, has been substantially delayed.

Landlocked Chad's economic development suffers from it's its geographic remoteness, drought, lack of infrastructure, and political turmoil. About 85% of the population depends on agriculture, including the herding of livestock. Of Africa's Francophone countries, Chad benefited least from the 50% devaluation of their currencies in January 1994. Financial aid from the World Bank, the African Development Fund, and other sources is directed largely at the improvement of agriculture, especially livestock production. Due The World Bank's decision to lack of financing, back the Doba oil field development and the Chad-Cameroon pipeline will add Chad to the group of already booming West African oil exporters. However, the Doba Basin rank and file may not benefit much from the oil fields, originally due to finish in 2000, has been substantially delayed. development projects.

Chad's primarily agricultural economy will continue to be boosted by major oilfield and pipeline projects that began in 2000. Over 80% of Chad's population relies on subsistence farming and stock raising for their its livelihood. Cotton, cattle, and gum arabic provide the bulk of Chad's export earnings, but Chad will begin to export oil in 2004. Chad's economy has long been handicapped by its land-locked landlocked position, high energy costs, and a history of instability. Chad relies on foreign assistance and foreign capital for most public and private sector investment projects. A consortium led by two US companies is has been investing $3.7 billion to develop oil reserves estimated at 1 billion barrels in southern Chad. Oil production is scheduled to come on stream in late 2003.

Chad's primarily agricultural economy will continue to be boosted by major oilfield and pipeline projects that began in 2000. Over 80% of Chad's population relies on subsistence farming and stock raising for its livelihood. Cotton, cattle, and gum arabic provide the bulk of Chad's export earnings, but Chad will begin to export oil in 2004. Chad's economy has long been handicapped by its landlocked position, high energy costs, and a history of instability. Chad relies on foreign assistance and foreign capital for most public and private sector investment projects. A consortium led by two US companies has been investing $3.7 billion to develop oil reserves estimated at 1 billion barrels in southern Chad. Oil production is scheduled to come came on stream in late 2003.

Chad's primarily agricultural economy will continue to be boosted by major oilfield and pipeline projects that began in 2000. Over 80% of Chad's population relies on subsistence farming and stock livestock raising for its livelihood. Cotton, cattle, and gum arabic provide the bulk of Chad's export earnings, but earnings; Chad will begin began to export oil in 2004. Chad's economy has long been handicapped by its landlocked position, high energy costs, and a history of instability. Chad relies on foreign assistance and foreign capital for most public and private sector investment projects. A consortium led by two US companies has been investing $3.7 billion to develop oil reserves estimated at 1 billion barrels in southern Chad. Oil production came on stream in late 2003.

Chad's primarily agricultural economy will continue to be boosted by major oilfield and pipeline foreign direct investment projects in the oil sector that began in 2000. Over 80% of Chad's population relies on subsistence farming and livestock raising for its livelihood. Cotton, cattle, and gum arabic provide the bulk of Chad's export earnings; Chad began to export oil in 2004. Chad's economy has long been handicapped by its landlocked position, high energy costs, and a history of instability. Chad relies on foreign assistance and foreign capital for most public and private sector investment projects. A consortium led by two US companies has been investing $3.7 billion to develop oil reserves - estimated at 1 billion barrels - in southern Chad. The nation's total oil reserves has been estimated to be 2 billion barrels. Oil production came on stream in late 2003. Chad began to export oil in 2004. Cotton, cattle, and gum arabic provide the bulk of Chad's non-oil export earnings.

Chad's primarily agricultural economy will continue to be boosted by major foreign direct investment projects in the oil sector that began in 2000. Over 80% of Chad's population relies on subsistence farming and livestock raising for its livelihood. Chad's economy has long been handicapped by its landlocked position, high energy costs, and a history of instability. Chad relies on foreign assistance and foreign capital for most public and private sector investment projects. A consortium led by two US companies has been investing $3.7 billion to develop oil reserves - estimated at 1 billion barrels - in southern Chad. The nation's total oil reserves has have been estimated to be 2 billion barrels. Oil production came on stream in late 2003. Chad began to export oil in 2004. Cotton, cattle, and gum arabic provide the bulk of Chad's non-oil export earnings.

Chad's primarily agricultural economy will continue to be boosted by major foreign direct investment projects in the oil sector that began in 2000. Over At least 80% of Chad's population relies on subsistence farming and livestock raising for its livelihood. Chad's economy has long been handicapped by its landlocked position, high energy costs, and a history of instability. Chad relies on foreign assistance and foreign capital for most public and private sector investment projects. A consortium led by two US companies has been investing $3.7 billion to develop oil reserves - estimated at 1 billion barrels - in southern Chad. Chinese companies are also expanding exploration efforts and plan to build a refinery. The nation's total oil reserves have been estimated to be 2 1.5 billion barrels. Oil production came on stream in late 2003. Chad began to export oil in 2004. Cotton, cattle, and gum arabic provide the bulk of Chad's non-oil export earnings.

Chad's primarily agricultural economy will continue to be boosted by major foreign direct investment projects in the oil sector that began in 2000. At least 80% of Chad's population relies on subsistence farming and livestock raising for its livelihood. Chad's economy has long been handicapped by its landlocked position, high energy costs, and a history of instability. Chad relies on foreign assistance and foreign capital for most public and private sector investment projects. A consortium led by two US companies has been investing $3.7 billion to develop oil reserves - estimated at 1 billion barrels - in southern Chad. Chinese companies are also expanding exploration efforts and plan to build a refinery. The nation's total oil reserves have been are estimated to be at 1.5 billion barrels. Oil production came on stream in late 2003. Chad began to export oil in 2004. Cotton, cattle, and gum arabic provide the bulk of Chad's non-oil export earnings.

Chad's primarily agricultural economy will continue to be boosted by major foreign direct investment projects in the oil sector that began in 2000. At least 80% of Chad's population relies on subsistence farming and livestock raising for its livelihood. Chad's economy has long been handicapped by its landlocked position, high energy costs, and a history of instability. Chad relies on foreign assistance and foreign capital for most public and private sector investment projects. A consortium led by two US companies has been investing $3.7 billion to develop oil reserves - estimated at 1 billion barrels - in southern Chad. Chinese companies are also expanding exploration efforts and plan to build are currently building a 300-km pipleline and the country's first refinery. The nation's total oil reserves are estimated at 1.5 billion barrels. Oil production came on stream in late 2003. Chad began to export oil in 2004. Cotton, cattle, and gum arabic provide the bulk of Chad's non-oil export earnings.

Chad's primarily agricultural economy will continue to be boosted by major foreign direct investment projects in the oil sector that began in 2000. At least 80% of Chad's population relies on subsistence farming and livestock raising for its livelihood. Chad's economy has long been handicapped by its landlocked position, high energy costs, and a history of instability. Chad relies on foreign assistance and foreign capital for most public and private sector investment projects. A consortium led by two US companies has been investing $3.7 billion to develop oil reserves - estimated at 1 billion barrels - in southern Chad. Chinese companies are also expanding exploration efforts and are currently building a 300-km pipleline pipeline and the country's first refinery. The nation's total oil reserves are estimated at 1.5 billion barrels. Oil production came on stream in late 2003. Chad began to export oil in 2004. Cotton, cattle, and gum arabic provide the bulk of Chad's non-oil export earnings.

Chad's primarily agricultural economy will continue to be boosted by major foreign direct investment projects in the oil sector that began in 2000. At least 80% of Chad's population relies on subsistence farming and livestock raising for its livelihood. Chad's economy has long been handicapped by its landlocked position, high energy costs, and a history of instability. Chad relies on foreign assistance and foreign capital for most public and private sector investment projects. Remittances are also an important source of income. The Libyan conflict disrupted inflows of remittances to Chad's impoverished western region that relies on income from Chadians living in Libya. A consortium led by two US companies has been investing $3.7 billion to develop oil reserves - estimated at 1 1.5 billion barrels - in southern Chad. Chinese companies are also expanding exploration efforts and are currently building have completed a 300-km 311-km pipeline and the country's first refinery. The nation's total oil reserves are estimated at 1.5 billion barrels. Oil production came on stream in late 2003. Chad began to export oil in 2004. Cotton, cattle, and gum arabic provide the bulk of Chad's non-oil export earnings.

Chad's primarily agricultural economy will continue to be boosted by major foreign direct investment projects in the oil sector that began in 2000. Economic conditions have been positive in recent years, with real GDP growth reaching 13% in 2010 because of high international prices for oil and a strong local harvest. GDP growth for 2012 was 5%. However, Chad's investment climate remains challenging due to limited infrastructure, a lack of trained workers, extensive government bureaucracy, and corruption. At least 80% of Chad's population relies on subsistence farming and livestock raising for its livelihood. The government of Chad is determined to improve agricultural production through modernization and mechanization over the next three years, and hosted a national Rural Development Forum in 2012 to promote investment in agriculture. Chad's economy has long been handicapped by its landlocked position, high energy costs, and a history of instability. Chad relies on foreign assistance and foreign capital for most public and private sector investment projects. Remittances are also an important source of income. The Libyan conflict disrupted inflows of remittances to Chad's impoverished western region that relies on income from Chadians living in Libya. A consortium led by two US companies has been investing $3.7 billion to develop oil reserves - estimated at 1.5 billion barrels - in southern Chad. Chinese companies are also expanding exploration efforts and have completed a 311-km pipeline and the country's first refinery. The nation's total oil reserves are estimated at 1.5 billion barrels. Oil production came on stream in late 2003. Chad began to export oil in 2004. Cotton, cattle, and gum arabic provide the bulk of Chad's non-oil export earnings.

Chad’s landlocked location results in high transportation costs for imported goods and dependence on neighboring countries. Oil and agriculture drive are mainstays of Chad’s economy. At least 80% of Chad's population relies for its livelihood on subsistence farming and livestock raising and oil Oil provides the bulk about 60% of export revenues. Cotton, revenues, while cotton, cattle, livestock, and gum arabic provide the bulk of Chad's non-oil export earnings. Remittances have also been an important source of income and Chad relies on foreign assistance and foreign capital for most much public and private sector investment. Oil production came on stream in late 2003 The services sector contributes about one-third of GDP and Chad began to export oil in 2004. Economic growth has been positive in recent years due to high oil prices attracted foreign investment mostly through telecommunications and strong local harvests, but banking. Chad’s fiscal situation position is repeatedly exposed to encumbered by declining oil prices, though high oil prices and drought . Recently, strong local harvests supported the economy has been strained by the costs of repatriating Chadians fleeing the violence in South Sudan recent years. Nearly all of Chad’s fuel is provided by one domestic refinery, and unanticipated shut-downs occasionally result in shortages. The country regulates the Central African Republic. price of domestic fuel, providing an incentive for black market sales. Chad's investment climate remains challenging due to limited infrastructure, a 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.

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. Chad relies on foreign assistance and foreign capital for much public and private sector investment. The services sector contributes about one-third of GDP and has attracted foreign investment mostly through telecommunications and banking. Chad’s fiscal position is encumbered by declining oil prices, though high oil prices and strong local harvests supported the economy in recent years.
Nearly all of Chad’s fuel is provided by one domestic refinery, and unanticipated shut-downs shutdowns occasionally result in shortages. The country regulates the price of domestic fuel, providing an incentive for black market sales.
Chad’s fiscal position is encumbered by declining oil prices, though high oil prices and strong local harvests supported the economy in recent years. Chad relies on foreign assistance and foreign capital for much public and private sector investment. Chad's investment climate remains challenging due to limited infrastructure, a 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.

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 about 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.
Chad’s fiscal position is encumbered by declining oil prices, though Although high oil prices and strong local harvests supported the economy in recent years. the past, low oil prices now stress Chad’s fiscal position. Chad relies on foreign assistance and foreign capital for much most of its public and private sector investment. Chad's investment climate remains challenging Investment in Chad is difficult due to its limited infrastructure, a 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 2017, 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. Multinational partners, such as the African Development Bank, the EU, and the World Bank are likely to continue budget support in 2017, but Chad will remain at high debt risk, given its dependence on oil revenue and pressure to spend on subsidies and security.

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 about 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. 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 2017, 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 2017, 2018, but Chad will remain at high debt risk, given its dependence on oil revenue and pressure to spend on subsidies and security.

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.