Country overview:

IOA has developed expertise on Chad that is broad and in-depth – encompassing all aspects of the country’s economy, politics and society – by conducting research and delivering consulting services on the country. Our analysts have noted that climate change has worsened the drought conditions of the large arid country that has historically been geographically isolated by its landlocked position in the Sahel. Subsistence farming and livestock provide a livelihood for most people. However, cotton is one agricultural crop that is viable with irrigation.

IOA economists have noted that the national economy has fallen into oil dependency. Economic development in Chad was hindered under the 2021 military junta; the 2024 elections formalised rule but political instability and opposition tensions persist.

Key opportunities in Chad:

The large arid country has extensive solar energy generation capability that has never been exploited
Chad’s status as a key French and US military ally, and trading partner, in an otherwise hostile region, means that the country benefits from extensive trade and investment opportunities not available to certain other nearby states
China has shown increased interest in trade with Chad in recent years

Key concerns/risks in Chad:

Chad is the second least-developed country in the world
Large open spaces, unconnected by road or rail, hinder transportation and security control within these areas
Political violence is the dilemma of the present, and climate change increasingly threatens the environment
Chad ended its French military alliance in 2024, shifting strategic partnerships while maintaining some Western ties, impacting its trade and investment profile in a complex regional security environment

Tips on doing business in Chad:

Starting a business:

The Chadian legal system provides five different types of legal entities for registering businesses. Establishing a local office requires a fee of US$ 280 and 1-1.5% of starting capital as well as a valid residence permit
The National Agency for Investment and Exportation (ANIE) operates Guichet Unique, a registration service which can process a new business application within three days
Foreigners cannot directly own land in Chad but can own 100% of a local subsidiary company

Doing business:

Chad is a challenging environment to operate overall. Local businesses are hindered by limited transport infrastructure, unreliable utilities access, and weak enforcement of contracts, corruption and a high tax burden
Conversely, the lack of development creates scope for patient investors with the right partners in key industries such as hydrocarbons and animal breeding
(Read more at: https://www.chadembassy.us/investing-in-chad)

Culture and society:

Formal business is generally conducted in French. A French speaking intermediary would be essential for any investors from Anglophone markets
Establishing local partnerships can be a slow process, as potential partners often prioritise rapport-building before negotiations can take place
Crime, civil unrest and militant activity are all persistent regional risks that should be accounted for when travelling