Country FilesCentralCountry Profile 2014: CHAD

Sat,18Nov2017

Posted on Friday, 07 February 2014 14:08

Country Profile 2014: CHAD

alt Déby’s game to play

The political class is preparing for the country’s first departmental and senatorial elections in 2014, ahead of legislative elections in 2015 and a presidential election in May 2016. Discussions about the electoral commission and other electoral matters will take up a good part of the year as President Idriss Déby Itno and his Mouvement Patriotique du Salut maintain control of the country’s political and military power centres.

 

 TABLE OF CONTENTS :

TOP CHADIAN COMPANIES

TOP CHADIAN BANKS

 

ar-infographie-chad-2014Déby’s game to play

The government uses security concerns to cow the opposition and the media

Oil companies are being urged to speed up exploration to plug revenue gaps

The political class is preparing for the country’s first departmental and senatorial elections in 2014, ahead of legislative elections in 2015 and a presidential election in May 2016. Discussions about the electoral commission and other electoral matters will take up a good part of the year as President Idriss Déby Itno and his Mouvement Patriotique du Salut maintain control of the country’s political and military power centres.

Threats to freedom of the press and political expression continue to dog national politics. The government claimed that it stopped a supposed coup attempt by two generals on 1 May and used this to justify a crack down on critical voices. The government arrested and tried several journalists and bloggers for plotting against it in early 2013, a move that Reporters Without Borders and the opposition denounced as a grave injustice. The government then attempted to charge Saleh Kebzabo, leader of the opposition and president of the Union Nationale pour la Démocratie et le Renouveau, with crimes because he criticised the trials. A nearly unanimous parliament refused to remove his immunity in September.

TERRORIST THREAT

The region is host to many conflicts, including those in Sudan, Central African Republic, northern Nigeria and Libya. Some of the largest threats to Chad’s security come from the consequences of instability in Libya and the confrontations between the Boko Haram Islamist militants and the security forces in northern Nigeria. The government’s opposition to the Islamist groups makes Chad a potential target for terrorist attacks.

Chadian diplomacy is also on the up. The country will organise its first African Union (AU) summit in 2015 and holds a rotating seat on the United Nations Security Council. The country plans to continue playing a major role in peace keeping missions in Mali and the Central African Republic.

Declining oil production – from 176,000 barrels per day (bpd) in 2005 to an average of 97,000bpd in 2013 – leaves the economy in a state of uncertainty. The government rejected proposals to create a rainy day fund when oil production began in 2003, leaving it little room for manoeuvre. The fall in production and government revenue has led to reduced government spending and investment. It had to launch a special bond in September to finance the construction of the international conference site that will be used for the AU summit.

The government has offered two solutions to the cash flow problem: multiply the number of oil wells and renegotiate agreements with the Bretton Woods institutions. In the oil sector, it awarded several new prospection licences. Production at the Badila field, operated by Canada’s Caracal Energy, was officially launched in June 2013 but it produces just 14,000bpd. The government is encouraging established licence holders to accelerate their exploration work. All of the areas around the Doba Basin will record stronger prospecting activity over the next year.

DEBT RELIEF TALKS

The government relaunched discussions with the International Monetary Fund (IMF), which sent a mission to the country in September 2013. More missions will be needed to see Chad through to the completion point of the Heavily Indebted Poor Countries debt relief initiative. The government in N’Djaména had squabbled with the IMF and World Bank for several months in 2013 over transparent management of oil revenue.

In March 2013, the government announced that it would launch a massive national dialogue with the goal of making the country an emerging economy by 2025. With Chad’s lack of infrastructure and weak education system, that is highly unlikely. And five government reshuffles in a 10-month period in 2013 have made long-term planning even more difficult. The government, however, has restarted stalled talks with the China Export-Import Bank for a large infrastructure loan.

The Société Nationale d’Electricité continues to struggle but has plans to meet its shortfalls. Producing only around a quarter of its 200MW capacity, it periodically plunges N’Djaména into blackouts. The government hired British firm Aggreko to install a temporary 20MW power plant in the capital in October 2013 to help to reduce the production deficit.

 TOP CHADIAN COMPANIES

No companies from Chad featured in The Africa's Report's Top 500 Companies in Africa 2013.

 

TOP CHADIAN BANKS

No banks from Chad featured in The Africa's Report's Top 200 Banks in Africa 2012.



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