Business & Investments
Chad has gained stability and peace and it is decided to reactivate its economy and its development. Its optimist spirit is justified on the one hand by the initiative taken by the Chadian government, and on the other hand by the existence of huge, yet to be explored, natural resources.
The country trumps with various assets, such as the inexhaustible salt and copper mines, and as an important turning point for the commercial trans-Saharan routes. The discovery of crude oil deposits, which are exploited in the country’s south are promising, and they immensely impact Chad’s future development.
The regained political stability allowed Chad to conclude agreements with a consortium of oil companies which invested 3.7 billion US dollars in order to develop the crude oil deposits of the region of Doba, to construct the pipeline between Chad and Cameroon, and the oil terminal of Kribi, on the Atlantic coast. The crude oil composite of Doba and the infrastructures associated with it have been effectuated in record time. From now on, Chad is part of the world’s crude oil exporting countries.
The exploitation of crude oil in the south of the country and the revenues generated from its exportation will contribute to the establishment of political sectors and help reactive Chad’s economy.
Since the beginning of the economy reform program, the economic situation of the country has truly improved. The real economic growth rate was 11 per cent in 2004. The Chadian government is keen on eliminating the obstacles that hindered economic growth in the past: it liberalized its economy and instigated a code of investment, which is very favorable, and Chad has been able to tie up with Bretton Woods institutions by negotiating financial deals, which have been approved by the IMF and the World Bank.
Business in Chad
Among the sectors that offer the best market outlet to American and Canadian enterprises, are: les hydrocarbon industry, the infrastructure, the mines, agriculture, livestock rising, tourism, the transport industry and telecommunications. Chad constitutes first order markets for a number of business services ranging in fields from building trade, administration, new economy, education, health, computer sciences, information technology to financial services, to name just a few.
Possible business opportunities and partners
Gaining peace, security and stability – which form the essential conditions for the reconstruction and development of the country – have allowed Chad to put into place wide-ranging political, administrative and economic procedures. Today much has been accomplished. The progress attained in the various economy sectors, due to input of private, mainly foreign, investors, has shown this most eloquently. Still much has to be done in order to diversify the Chadian economy. Facing inescapable challenges of development, the country has to attract still numerous partners in its permanent quest for growth. Following you’ll see examples of potential business opportunities. This list is neither completely exclusive nor exhausted to its limits.
Education, training and work
Since the human being is the key of development, everything has to be conceived and ventured within his range of need and perfection, while adequate to the requests of globalization and the modern job market. However, the education sector, particularly the one of professional apprenticeship, is often neglected. Entrance structures are far from being capable to absorb the plenty of young people searching for training and education. These young people are sought after with wringing hands by the enterprises. Thus for the development of this sector the adduction of foreign partners are indispensable.
This is a sector that is inadequately developed and that lacks units of industrial production. There is a real need to enlarge the country’s product base in order to be able to cater products manufactured in Chad to the regional and international markets. It is therefore important to develop supplies, such as agricultural products, livestock rising and fishery. Chad’s principle resource offer enormous potentialities, which ultimately serve foreign partners and investors.
The economic process relies greatly on energy resources. However, electricity is still a luxury for the ordinary Chadian. We need partners, who have knowledge in developing mechanisms for solar energy, wind power and energy generated from gas. The utilization of alternative and environment friendly energy sources will notably have beneficial consequences for the regeneration of our forests.
The telecommunication infrastructures are also still far from satisfactory in light of the immense needs of the country. The country counted only 9000 telephone lines in 1998, with 83 per cent in the capital, N’Djamena, and the rest spread over nine provincial towns. This field, as well as the fields of mobile telecommunication and new information technologies, offers a wide range of opportunities to foreign investors.
Bank system and micro-finance
The bank sector, including five commercial banks planted in five large cities of the country, needs to be reinforced. National savings have to be mobilized in order to constitute capital mass, which will be invested into the country. This is another action camp that awaits specialists and partners form all parts of the world.
Small and middle-size businesses
The SMB play a preponderant role in the economic development of Chad, creating jobs, contributing to the increase of the GDP, valorizing local products, regional development, etc. This sector is still in its infancy shoes and consequently it is open to partners who could mobilize capital in order to invest into this sector.