Chad is a landlocked country in Central Africa. It is bordered by Libya to the north, North Sudan and South Sudan to the east, the Central African Republic to the south, Cameroon and Nigeria to the southwest, and Niger to the west. Chad obtained its independence from France on 11 August 1960. It is currently divided into 23 regions, with N'Djamena as the capital. It has a presidential republic form of government. The official currency in Chad is the Franc de la Coopération financière en Afrique (Central African CFA) (XAF), and the official languages are French and Arabic.
More than 80% of the work force in Chad is involved in agriculture, small-scale subsistence farming, herding, and fishing.
The agriculture sector’s poor performance is likely to worsen the unfavourable economic situation. This important sector of the economy suffered from lack of rainfall in 2015, resulting in a sharp decline in cereal production of around 12% according to the government estimates. The Chadian state’s capacity to implement the public investment programmes in its economic policy is being severely challenged. The significant expenditure in 2015 on meeting the threats and violence of the terrorist sect Boko Haram and jihadist movements also affected the country’s economy till 2018.
In 2018, the inflation rate rose from the 0.2% recorded in 2017 to reach 1.9%.
Furthermore, since 2003, the Chadian economy has depended on the oil industry. However, in 2016, the oil industry experienced a serious slowdown due to the collapse in oil prices on the international markets that resulted in a significant reduction in the level of public investment in the extractive sector and led to a fall in domestic demand.
However, from above, it should be noted that the economic growth that was 0.6% in 2017 increased to 2.4% in 2018.
Chad is highly dependent on foreign assistance. Its principal donors include the European Union (EU), France, and the multilateral lending agencies. Petroleum, cotton, cattle, and Arabic gum are Chad's major exports.
Chad is a principal and active member of the African Union (AU) and the United Nations (UN), as well as of numerous principal regional organisations, including the Community of Sahel-Saharan States (CEN-SAD), the Economic Community of Central African States (CEEAC), and the Economic and Monetary Community of Central Africa (CEMAC). In addition to these organisations, Chad also belongs to a host of other organisations, including the Organisation Internationale Francophonie (OIF), World Health Organization (WHO), World Intellectual Property Organization (WIPO), and World Trade Organization (WTO), and had been declared compliant to the Extractive Industries Transparency Initiative (EITI) in 2014.
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