(4 minutes read)
· The Republic of Chad has created a blueprint for
industrialization and economic diversification aiming at 8% yearly
growth rate by 2030
· The country’s economic expansion will be leveraged by
investing more in key sectors like energy, mining and digital
technology
· The landlocked central African country became an oil
producing nation in 2003. More than 60% of the revenue comes from oil
by way of exports
The Republic of Chad has created a blueprint for industrialization and
economic diversification aiming at 8% yearly growth rate by 2030. The
Master Plan, which hopes to achieve a higher growth rate of 8%, a good
benchmark against the present low growth of meager 2.4% augur well for
the country. But the pertinent question is: whether it is achievable
given the innumerable odds the country is facing. This is compounded
by the onset of covid-19, which has disrupted the global supply
chains. Yet, the top political leadership feels that industrialization
and economic diversification are the enablers for the accelerated
growth and the target set is achievable.
The country’s economic expansion will be leveraged by investing more
in key sectors like energy, mining and digital technology. From now
till 2020, Chad Republic has planned to invest mainly in these
sectors. A budget of US$ 985 billion has been envisaged, to be spent
in stages over the next 10-years. The plan being implemented jointly
by the United Nations Economic Commission for Africa (UNECA) and the
Chadian government has grand plans to spur employment and economic
growth.
The landlocked central African country became an oil producing nation
in 2003. More than 60% of the revenue comes from oil by way of
exports. The non-oil exports are cotton, cattle, livestock and gum
Arabic. Sharp dip in the oil prices along with security issues on the
borders are posing threats to the country’s economic growth. Its
present economic growth is projected at 2.4% and in less than 4 four-
fold increase in growth at 8% over the 10-year period for the
country very much depends on which way the oil prices would move.
Glencore petroleum company has a large presence in Chad and a lot of
importance being assigned as to how the country would negotiate for
fixation of oil prices, when it comes again for re-negotiation.
From many African countries, Glencore is threatening to withdraw
because of the low oil output coupled with low market prices. The
company also complains that home countries, where it has operations,
charge heavy fees and introduce stringent conditions when the
contracts come for re-negotiation.
Despite its rich mineral resources and potential for agricultural
growth, Chad occupies a very low position in the World Bank’s Human
Resource Index. The success of the Master Plan very much depends on
the quantum the country can invest in infrastructure, education,
healthcare and agriculture and of course IT.
