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Foreign Direct Investment Analysis In Chad

FDI in Figures

Foreign Direct Investment (FDI) inflows into Chad have increased consistently over the past years, from USD 538 million in 2013 to USD 761 million in 2014. They are primarily directed toward the oil industry.

Although the country is open to investments, it is difficult to invest in Chad due to the relatively unfavourable business climate. In the World Bank's Doing Business 2016 report, Chad is one of the last countries in the ranking, 183rd out of 189 countries. The procedures for starting a business and paying taxes are the most burdensome. In addition, insecurity, political instability and poor infrastructure, as well as a limited domestic market and a shortage of skilled labour remain major obstacles to investment.

On the other hand, Chad is an open economy and offers advantageous tax benefits and incentives to prospective investors.

The majority of FDI goes toward oil exploration and infrastructure development. The services sector, which represented 32% of value added in 2014, is expected to expand in the coming years due to increased foreign investments in the telecommunications and banking sectors. The country's main investors are Nigeria. France, the United Kingdom and South Korea.

Foreign Direct Investment Analysis In Chad

Foreign Direct Investment Analysis In Chad

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