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Chad: Investing
Located in the center of the CEMAC zone, which attracts the majority of FDI into Africa, Chad is the second recipient of FDI after Equatorial Guinea. Since 2000, the FDI inflows have been steady, mainly in oil projects. However, with the international economic and financial crisis along with the country's instability, they have petered out. The investments should pick up again, in the next following years continuing the revival that began in 2010.
Chad has opened up its economy and offers advantageous tax benefits and incentives to prospective investors; however, security, political instability and the weakness of its infrastructures are consistent hindrances.
The sectors that attract most of the FDI are oil exploration and infrastructure development. France, the United Kingdom and South Korea are the main investor countries.
| Chad | Sub-Saharan Africa | الولايات المتحدة | Germany | |
| Index of Investor Protection | 3.3 | 4.4 | 8.3 | 5.0 |
Source: Doing Business
Note: The Greater the Index, the Higher the Level of Investor Protection.
| Foreign Direct Investment | 2008 | 2009 | 2010 |
| FDI Inward Flow (million USD) | 234 | 462 | 781 |
| FDI Stock (million USD) | 2,924.9 | 3,386.7 | 4,168.0 |
| Number of Greenfield Investments*** | 1.0 | 1.0 | - |
| FDI Inwards (in % of GFCF****) | 18.5 | 4.0 | - |
| FDI Stock (in % of GDP) | 35.0 | 49.6 | - |
Source: UNCTAD - Last Available Data
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
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Last Updates: January 2012