Chad: Investing in Chad
According to UNCTAD's World Investment Report 2024, FDI inflows to Chad increased by 48.7% to USD 913 million in 2023, from USD 614 million one year earlier. At the end of the same period, the total stock of FDI amounted to USD 9.28 billion, around 53.1% of the country’s GDP. The majority of FDI in the country goes toward oil exploration and infrastructure development. The services sector has also been attracting a significant amoununctad.org/system/files/official-document/wir2024_en.pdft of foreign investment, mostly through the telecommunications and banking sectors. The country's main investors are Nigeria, France, the United Kingdom and South Korea.
Although Chad welcomes investments, significant constraints include the lack of economic diversification, hurdles in initiating new businesses, complex tax procedures, inadequate infrastructure, a small domestic market, and a scarcity of skilled labour. Despite these challenges, the government has initiated reforms to improve the business environment. The majority of investments in the country are directed towards the oil and gas sector, despite efforts in infrastructure development. Insecurity, political instability, poor infrastructure, limited domestic market, and a shortage of skilled labour continue to pose significant barriers to investment. Additionally, insufficient protection of private property and prevalent fraud in property transactions further deter investment. Chad's legal framework fosters FDI, with minimal formal constraints on foreign trade and investment. According to Chadian law, both foreign and domestic entities have the right to establish and possess business ventures. The only restriction on foreign ownership pertains to companies considered to have implications for national security. Additionally, the National Investment Charter ensures that foreign entities and individuals have the same rights as Chadian counterparts in privatization procedures. Chad’s National Agency for Investment and Exports (ANIE, Agence Nationale des Investissements et des Exports) facilitates foreign investment. Nevertheless, despite these efforts, political instability remains a significant concern. In February 2024, Chad experienced a self-coup, resulting in the death of opposition leader Yaya Dillo. Such events have heightened concerns about governance and the rule of law, potentially deterring foreign investors. Chad ranks 158th among the 180 economies on the Corruption Perception Index 2024 and 133rd out of 184 countries on the latest Index of Economic Freedom.
Foreign Direct Investment | 2020 | 2021 | 2022 |
FDI Inward Flow (million USD) | 558 | 705 | 614 |
FDI Stock (million USD) | 7,053 | 7,758 | 8,372 |
Number of Greenfield Investments* | 1 | 2 | 1 |
Value of Greenfield Investments (million USD) | 199 | 33 | 10 |
Source: UNCTAD, Latest available data
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
Country Comparison For the Protection of Investors | Chad | Sub-Saharan Africa | United States | Germany |
Index of Transaction Transparency* | 7.0 | 5.5 | 7.0 | 5.0 |
Index of Manager’s Responsibility** | 1.0 | 3.5 | 9.0 | 5.0 |
Index of Shareholders’ Power*** | 4.0 | 5.5 | 9.0 | 5.0 |
Source: Doing Business, Latest available data
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.
-the geographical isolation of Chad
-the fact that the country is too heavily reliant on the oil sector (about 20% of GDP and 60% of exports)
-high poverty rate (40% of the population in 2019 according to the World Bank)
-high level of corruption and weak contract enforcement
-the poor business climate (in 2018, the World Bank ranked Chad 181st out of 190 countries for ease of doing business)
-poor transport infrastructure, a lack of skilled labour, and unreliable energy supply.
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Latest Update: May 2025