| Country Profile: CHAD | ||
| Central Africa |
| Monday, 23 November 2009 00:00 |
This country profile was published in November 2009 in our annual 'Africa in 2010' issue. The next edition, 'Africa in 2011' will be on sale in November 2010.Country ProfileTop Zambian CompaniesTop Zambian Banks President Idris Déby Itno’s grip on power was bolstered in 2009 by his surprise defeat of rebels based along the border with Sudan. In 2010, his authoritarian rule is likely to be further enhanced by delayed domestic elections, an extensive programme of arms purchases and his manipulation of Western concerns over Darfur. Déby’s key strength remains the disparate and fragmented nature of his opponents, with rebel leaders frequently lured back to Ndjamena by cash inducements drawn from Chad’s windfall oil revenues.
In keeping with other former French colonies, the bilateral defence accords Chad signed with Paris at independence will be revised and finally published in 2010. France’s 1,000-strong Epervier force in Chad will remain because the provision of aerial intelligence on rebel positions remains of key strategic value to Déby’s forces.
Legislative elections, postponed in 2006, are scheduled for mid-2010 but piecemeal work on the 2009 census and consequent delays in compiling a credible electoral register make further delays likely. Wrangles between the ruling Mouvement Patriotique du Salut and the civilian opposition grouped under the Coordination des Partis Politiques pour la Défense de la Constitution will focus on the role of the electoral commission and the implementation of the August 2007 political accord. Drafted largely under French auspices, the accord is unlikely to yield meaningful cooperation and stability, particularly as independent politicians and beleaguered civil society groups insist that reconciliation and elections can only be achieved after dialogue with leaders of the main armed rebel movements, a proposal that the government and donors reject.
Chinese investment in the oil sector accelerated in 2009 and productive fields were discovered and expanded, but these will only boost growth in the longer term. A new Chinese refinery at Djermaya is due to be operational in 2011. The expansion will not compensate for the impact of the fall in oil revenues, prompting a substantial fiscal deficit, estimated at 6.5% of GDP in 2009. This necessitated sharp cuts in expenditure, worsening ongoing labour unrest.
Fractious relations with donors were patched up in 2009, with the IMF implementing a six-month Staff Monitored Programme to shore up government finances, which were severely dented by off-budget expenditure, notably on weapons. Stronger oil prices and ongoing insecurity underpin growth estimates; real GDP was predicted to grow by 1.6% in 2009, with a further growth of 4.6% anticipated for 2010.
Chad’s oil revenues are currently ten times greater than earnings from exports of livestock and cotton. The oil prices falls since mid-2008 prompted a current account deficit estimated at around 20.5% of GDP in 2009. The economy rapidly became over-dependent on oil as soon as production started in 2003. Within four years it accounted for 45% of GDP, while agriculture’s share of national income slipped to barely 20%.
Chad's Top Companies
No Chadian companies featured in The Africa's Report's Top 500 Companies in Africa 2009.
Chad's Top BanksNo Chadian banks featured in The Africa's Report's Top 500 Banks in Africa 2009.
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Tension with Sudan will persist, with President Déby blaming unrest in the east of the country on ‘mercenaries’ in the pay of Sudan and with Libyan officials playing an uneasy mediation role. The one-year mandate of the UN Mission in Chad and the Central African Republic, known as MINURCAT II, expires in March 2010. This is expected to be renewed, despite the inability of the UN to recruit its full complement of 5,200 troops and the inability of the troops to combat widespread banditry. Insecurity will continue for the 280,000 Darfuri refugees scattered in 12 UN camps, as well as an estimated 171,000 internally-displaced Chadians and 155,000 local people affected by the lawlessness.
