Chad, officially the Republic of Chad, is a landlocked country in Central Africa. It is bordered by Libya to the north, Sudan to the east, the Central African Republic to the south, Cameroon to the southwest, Nigeria to the southwest (at Lake Chad), and Niger to the west. The frontiers of Chad, which constitute a heritage from the colonial era, do not coincide with either natural or ethnic boundaries.
Map of Chad and its neighboring countries
Chad is one of Africa’s largest countries, with a land area of 1,284,000 square kilometers that encompasses three agro-climatic zones. The geography is broad with arid plains and deserts in the north and mountains in the northwest. The terrain is that of a shallow basin that rises gradually from the Lake Chad area in the west and is rimmed by mountains to the north, east, and south. The country's topography is generally flat, with the elevation gradually rising as one moves north and east away from Lake Chad. The highest point in Chad is Emi Koussi, a mountain that rises 3,100 m (10,171 ft) in the northern Tibesti Mountains.
Chad's Neighboring Countries
Chad is a landlocked country bordering:
- Libya to the north
- Sudan to the east
- The Central African Republic (CAR) to the south
- Cameroon, Niger, and Nigeria on the west (with which it shares Lake Chad)
The nearest port, Douala, is 1,700 km from the capital, N’Djamena. N’Djamena (formerly Fort-Lamy), is almost 1,000 miles (1,600 km) by road from the western African coastal ports.
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Political and Economic Overview
The government system is a republic; the chief of state and head of government is the president. Chad is currently enjoying a period of political and economic stability, and the government of Chad (GOC) is focused on improving internal economic and social conditions.
Chad has a mixed economic system in which much of the population relies on subsistence farming and livestock, but private sector development depends on foreign capital. Agriculture and livestock breeding are important economic activities that employ the great majority of the population, but generate just over 10 percent of official GDP. The oil sector dominates economic activity, despite a declining trend in the medium term.
Chad’s human development is very low, according to the Human Development Index (HDI), and poverty continues to afflict a large proportion of the population.
Foreign Investment in Chad
The government of Chad is favorably disposed to foreign investment, with a particular goal of attracting North American companies. Chad’s laws and regulations encourage FDI. The National Investment Charter of 2008 offers incentives to foreign companies establishing operations in Chad, including up to five years of tax-exempt status. The National Investment Charter permits full foreign ownership of companies in Chad.
Foreign businesses interested in investing in Chad should contact the National Agency for Investment and Exports (ANIE), a one-stop shop for filing the legal forms needed to start a business. In addition, most foreign corporations operating in Chad have taken the extra step of signing contracts directly with the GOC. There are few formal restrictions on foreign trade and investment. Since 2009, Chad’s foreign investment inflows have been increasing, largely due to investments in the oil sector.
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Challenges to Investment
Chad’s business and investment climate remain challenging. Private sector development is hindered by corruption, poorly developed road and transport infrastructure, recurrent energy shortfalls, lack of skilled labor, and heavy tax burdens.
Chad’s judicial system is weak and rulings, including those relating to contract disputes, are susceptible to government interference. There is limited capacity within the judiciary to address commercial issues, including contract disputes. There is an increasing trend of government ministries attempting to change the terms of contracts or apply new laws broadly, even to companies that have preexisting agreements that exempt them.
Trade and Monetary Policies
Chad has no restrictions on converting, or repatriating funds associated with an investment (including remittances of investment capital, earnings, loan repayments, lease payments, royalties) into a freely usable currency and at a legal market-clearing rate.
Chad is a member of the African Financial Community (CFA) and uses the CFA Franc (FCFA) as its currency. The FCFA is pegged to the Euro at a fixed rate. Chad, as an Economic and Monetary Community of Central Africa (CEMAC) member, shares a central bank with Cameroon, Central African Republic, Equatorial Guinea, Gabon, and the Republic of Congo.
Legal System and Property Rights
Chadian law protects businesses from nationalization or expropriation, except in cases where such expropriation is in the public interest. Chad’s legal system and commercial law is based on the French Civil Code. However, the constitution recognizes customary and traditional law as long as it does not interfere with public order or constitutional rights.
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Chad’s commercial laws are set through international arrangements among the member states of the CEMAC, CEEAC, and the Organization for the Harmonization of Business Law in Africa (OHADA). Chad’s court system rules on commercial disputes, but its capacity to do so is limited.
Trade Policies
Chad does not impose any performance, local content, or export requirements on businesses. There is no requirement to transfer technology or proprietary business information to Chadian companies or the GOC. There are likewise no government-imposed conditions on authorization to invest.
There is, however, a legal requirement that obliges foreign companies to employ Chadian nationals for 98 percent of their staff. Firms can formally apply for permission from the Labor Promotion Office (ONAPE) to employ a more than two percent expatriates if they can demonstrate that skilled local workers are not available.
Chad's Climate Zones
Chad has four climatic zones:
- The northernmost Saharan zone averages less than 200 mm (7.9 in) of rainfall annually. The sparse human population is largely nomadic, with some livestock, mostly small ruminants and camels.
- The central Sahelian zone receives between 200 and 700 mm (7.9 and 27.6 in) rainfall and has vegetation ranging from grass/shrub steppe to thorny, open savanna.
- The southern zone, often referred to as the Sudan zone, receives between 700 and 1,000 mm (27.6 and 39.4 in), with woodland savanna and deciduous forests for vegetation.
- Rainfall in the Guinea zone, located in Chad's southwestern tip, ranges between 1,000 and 1,200 mm (39.4 and 47.2 in).
Lake Chad in a 2001 satellite image
Basic Information
| Aspect | Details |
|---|---|
| Full name of country | Republic of Chad |
| Region | Africa |
| Official language | French, Arabic |
| Population | 19,093,595 (2024 est.) |
| Land area | 1,259,200 sq km (486,180 sq miles) |
| Capital | N'Djamena |
| Government type | Presidential republic |
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