Street scene in N'Djamena, the capital of Chad

    Economic situation High dependence on oil exports

    In order to reduce poverty in Chad, comprehensive economic reforms, an expansion of economic activity to new markets and effective measures to combat corruption are needed, along with improvements in the education system.

    Following two years of recession as a result of the COVID-19 pandemic, the Chadian economy began to recover in 2022. According to the International Monetary Fund (IMF), economic growth stood at 3.6 per cent in 2025. However, the country’s economic development is subject to various risks, including volatile oil prices, political instability, regional conflicts and climate change-induced natural disasters.

    In May 2025, the Government of Chad presented a national development plan for the period up to 2030 which aims to achieve socio-economic progress, with a focus on areas such as infrastructure and decentralisation. The funding of 30 billion US dollars is to be provided largely by donors and private investors.

    According to the latest Sustainable Development Report (formerly the SDG Index), which assesses the progress made towards achieving the 17 Sustainable Development Goals, Chad ranks 165th out of 167 countries evaluated.

    Underinvestment in the economy and infrastructure

    Poor economic diversification is a significant problem. A substantial share of government revenue comes from oil production, while other economic sectors are underdeveloped. The country is therefore highly dependent on developments in the global commodities markets.

    Chad does not have a functioning market economy and there is a shortage of private investment capital. The road system in Chad is inadequate. During the rainy season, large areas of the country are inaccessible by road. Given Chad’s landlocked position and the long distances to seaports, this is a major development constraint.

    Around 70 per cent of the population depend on agriculture for their livelihoods, primarily on subsistence farming. Agricultural yields fluctuate considerably due to increasingly frequent extreme weather events such as climate change-induced droughts and floods. Existing conflicts over soil and water are being exacerbated.

    Debt crisis

    According to estimates by the World Bank and the IMF, Chad’s risk of debt distress is high. The collapse of oil prices triggered by the COVID-19 pandemic put substantial pressure on its public finances. As a consequence, Chad was the first country to apply to restructure its debt under the G20’s new Common Framework for Debt Treatments beyond the DSSI. In late 2022, an agreement was reached that paves the ground for further funding being provided by the International Monetary Fund. However, an increase in oil prices has led to a postponement of debt restructuring. Germany is not one of Chad’s creditors.

    As at: 07/05/2026