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Sub Saharan Africa
Chad |
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Last reviewed: 18 December 2007 |
Country information
ECONOMY
Basic Economic Facts
GDP: US$6.55 billion (2006 est.)
Annual Growth: 1.3% (2006 est.)
Inflation: 7.9% (2006 est)
Major economic sectors: Oil, Cotton, Livestock
Major trade partners: European Union, Nigeria, United States
Exchange rate: 1 Euro = CFA 655.957 (fixed).
Chad is experiencing an unprecedented oil boom, leading to an exponential growth rate – around 30% in 2004. Recently revised World Bank estimates put reserves as high as 2bn Barrels. The fields in the southern Doba basin came on stream only in 2003 but output is now at 180,000 barrels a day, which is expected to be its peak, unless substantial new reserves are found and brought on stream. The fields are being developed by a consortium led by ExxonMobil.
Under the impulsion of the World Bank, a partner in the creation of the oil pipeline between Doba and Kribi (in Cameroon), a special arrangement was established in 2003 to manage oil revenues. Under this plan, which was voted into Chadian law, 10% of direct revenues are put in a “future generations” account to be used when oil revenue declines. Of the remaining 90%, the majority is to go to a stabilisation account, which was only to be used for spending in “priority sectors” - principally health and education. However, In December 2005 the parliament passed a law which allows for significant sums from the future generations account to be transferred back to the government, and for the definition of priority sectors to be widened to include the security sector and local administration. This change in the law caused a rift with the World Bank, and further negotiations in the summer of 2006 were necessary to repair relations.
The Cotton sector, the traditional backbone of the economy before oil, still employs up to 300,000 Chadians. But the parastatal responsible for developing and marketing the crop has significant deficits and management problems.
World Bank
IMF Country Reports - Chad
