COUNTRY COMMERCIAL GUIDE

CHAD - FY 2004

"COUNTRY COMMERCIAL GUIDES CAN BE ORDERED IN HARD COPY OR ON DISKETTE
FROM THE NATIONAL TECHNICAL INFORMATION SERVICE (NTIS) AT
1-800-553-NTIS. U.S. EXPORTERS SEEKING GENERAL EXPORT INFORMATION AND
ASSISTANCE OR COUNTRY-SPECIFIC COMMERCIAL INFORMATION SHOULD CONSULT
WITH THEIR NEAREST EXPORT ASSISTANCE CENTER OR THE U.S. DEPARTMENT OF
COMMERCE'S TRADE INFORMATION CENTER AT (800) USA-TRADE, OR GO TO ONE OF
THE FOLLOWING WEB SITES. [WWW.BUYUSA.COM](http://WWW.BUYUSA.COM/),
[WWW.EXPORT.GOV](http://WWW.EXPORT.GOV/), OR
[WWW.TRADEINFO.DOC.GOV](http://WWW.TRADEINFO.DOC.GOV/)."

TABLE OF CONTENTS

Chapter 1 - Executive Summary

 

Chapter 2 - Economic Trends and Outlook

Chapter 3 - Political Environment

 

Chapter 4 - Marketing US Products and Services

Chapter 5 - Leading Sectors for U.S. Exports and Investment

 

Chapter 6 - Trade Regulations, CUSTOMS and Standards

 

Chapter 7 - Investment CLIMATE STATEMENT

 

Chapter 8 - Trade and Project Financing

 

Chapter 9 - Business Travel

 

Chapter 10 - Economic and Trade Statistics

>  

Chapter 11 - U.S. and Chadian Contacts

 

Chapter 12 - Market Research and Trade Events

**CHAPTER 1: EXECUTIVE SUMMARY**

Overview:

Development of Chad's petroleum sector is continuing to stimulate
economic growth and increase U.S. trade and investment in Chad. One of
the poorest countries in the world, Chad\'s development has long been
hindered by its geographic isolation, its poor infrastructure and its
history of political instability. In recent years, Chad has gradually
made progress in reducing some impediments to economic growth by
implementing structural reforms and improving its infrastructure. It is
hoped that the oil project will serve as a catalyst for the entire
economy by helping to develop infrastructure and attract additional
trade and investment in other sectors. The question remains whether Chad
will continue to consolidate its economic reforms and invest its oil
revenues wisely to encourage a wider range of economic initiatives.
Continuing political controversy surrounding past elections and a
withering rebellion in northern Chad dampen Chad\'s economic prospects
somewhat by exposing the weaknesses in Chad\'s political institutions.

**Economic Profile:**

::: Definition-Term
Chad is a land-locked country in north central Africa roughly three
times the size of California. Most of its ethnically and linguistically
diverse population of approximately 8.9 million lives in the south. In
2002, Chad\'s nominal GDP was estimated at just over USD 1.84 billion
with per capita income at approximately USD 237. Aside from the pending
export of petroleum, Chad's major exports remain cotton, cattle, and gum
arabic. Like many other developing countries, Chad has a small formal
sector and a large, thriving informal sector. Government statistics
indicate the following distribution: Agriculture 36 percent (Farming 22
percent, Livestock 11 percent, Fishing 3 percent), Industry 14 percent
and Services 50 percent. Over 80 percent of the work force is involved
in agriculture (subsistence farming, herding and fishing). Chad is
highly dependent on foreign assistance. Its principal donors include the
European Union, France and the multilateral lending agencies.
:::

**Economic Indicators:**

After averaging 0.8 percent in 1999-2000, Chad's real GDP growth jumped
to 8.9 percent in 2001 and 10.6 percent in 2002 as the Doba oil project
accelerated. Inflation rose from 3.7 percent in 2000 to 12.4 percent in
2001, then dropped to 5.2 percent in 2002. These fluctuations are due in
large part to increasing demand from the Doba project but also to recent
fluctuations in agricultural production. After a disappointing
agricultural campaign in 2000, increased production during the 2001/2002
timeframe helped reduce inflation in 2002. The disappointing harvest
during the 2002/2003 timeframe, however, may result in increased
inflation in 2003. Chad's economic performance, at least until the onset
of oil exports in late 2003, continues to depend on fluctuations in
rainfall and in prices of its principal export commodities, especially
cotton.

Despite the recent fluctuations, the Central Bank projects a third year
of continued growth in 2003, boosted by oil production as well as
macroeconomic reform with the assistance of Bretton Woods institutions.
For 2003, the bank projects a real GDP growth of 9.1 percent and an
inflation rate of 6 percent which, compared to previous economic
performance, is relatively consistent with 2002 figures. The IMF
projects continuing high growth rates during the next three years, as
the Doba Oil Project achieves full export capacity.

**Structural Adjustment Progress:**

Since 1995, the government of Chad (GOC) has made incremental progress
in implementing structural reforms and improving government finances
under successive structural adjustment programs. Most state enterprises
have been partially or completely privatized, non-priority public
spending has been reduced and the government has gradually liberalized
some key sectors of the economy. This process is continuing under the
1999-2002 Poverty Reduction and Growth Facility (PRGF) program.
Liberalization of the telecommunications, cotton and energy sectors is
expected to proceed over the next several years. The government is also
collaborating with two regional organizations, CEMAC (Communauté
Economique et Monétaire d\'Afrique Centrale) and OHADA (Organisation
pour l\'Harmonisation du Droit des Affaires en Afrique), to reform its
commercial, customs and tax laws in order to conform with regional
initiatives aimed at establishing a more consistent and attractive
investment climate. Chad qualified for interim HIPC debt relief in May
2001 and the IMF approved PRGF payments in December 2001 and April 2002,
signaling that Chad's relations with the International Financial
Institutions (IFIs) remain on track. The government continues to work
with international organizations and is close to approving a final
version of the poverty reduction strategy.

**The Doba Basin Oil Project:**

Following a crucial World Bank financing decision in June 2000, the Doba
project began its construction phase in October 2000. By the end of
2004, an American-led consortium will have invested USD 3.7 billion
(approximately 2 billion in Chad) to develop an estimated 1 billion
barrels of petroleum reserves in southern Chad. By the year 2003-2004
the consortium plans to produce between 150,000 to 250,000 barrels of
oil a day from three fields in southern Chad. The World Bank estimates
that the project will provide a minimum of USD 80 to 100 million in
annual government revenues during the 25-year production phase. In the
initial years, most of this government revenue is committed to priority
development spending under an agreement with the World Bank. The
consortium is continuing to explore other regions in Chad where initial
exploration results have been encouraging.

**Political Profile:**

A strong executive branch led by President Idriss Deby dominates the
government of Chad. President Deby took power by military means in
December 1990 and was subsequently elected to a five-year term in 1996
and reelected in 2001 amidst widespread allegations of electoral fraud.
President Deby\'s party, the MPS, won a comfortable majority of the
125-member National Assembly seats in early 1997 and (with smaller
allied parties) a supermajority in the 2002 legislative elections.
During the past decade, Chad has enjoyed a period of relative political
stability. In 1998, however, a former government minister initiated a
rebellion in Chad\'s north that diverted some government resources and
attention from economic development, although most major programs are
supported by international donors and were generally not affected. Chad
enjoys a good bilateral relationship with the United States and welcomes
trade and investment proposals from U.S. businesses.

**Commercial Trends:**

US exports to Chad soared in 2001 and 2002 due to the construction phase
of the Doba oil project. From a base of USD 10.8 million in 2002, U.S.
exports to Chad rose to USD 137 million in 2001 and USD 127 million in
2002. Historically, France has supplied the largest share of Chad\'s
imports followed by Nigeria, Cameroon, and other European Union members,
but the construction phase of the Doba project has dramatically
increased the U.S. share. Principal imports from the U.S. include oil
industry equipment, machinery, wheat flour, construction equipment,
construction materials and computer equipment. Chad usually exports most
of its cotton to southern Europe, cattle to Nigeria and gum arabic to
the U.S. and Europe. Gum arabic exports to the U.S. have risen
dramatically over the past decade, due to both economic sanctions
against rival producer Sudan and greater efforts on the part of
U.S.-based importers. In addition to the petroleum sector, promising
investment opportunities may exist in food processing,
telecommunications, agro-industry, alternative energy sources and
energy-saving devices, textiles and mining.

**CHAPTER 2: ECONOMIC TRENDS AND OUTLOOK**

1.  **MAJOR TRENDS AND OUTLOOK**

    Although agriculture will continue to dominate Chad\'s economy, the
    Doba Basin oil project is improving the economic environment and
    increasing opportunities in other sectors. Chad\'s economy has
    registered variable growth as it remains vulnerable to fluctuations
    in prices and production levels of its principal export products:
    cotton, gum arabic, and beef on the hoof. Development in other
    sectors of the economy has thus far been constrained by several
    factors, in particular high energy costs and poor transportation
    infrastructure. The government remains heavily dependent on foreign
    assistance for its budgetary needs. Chad has made incremental
    progress in improving public finances and implementing structural
    reforms. Progress is also expected in reducing other constraints as
    Chad\'s infrastructure is gradually improved and the energy sector
    is liberalized. The Doba Basin oil project and the development of
    smaller, high-grade oil reserves north of Lake Chad should reduce
    energy prices and encourage foreign investment in Chad.

    **Economic Indicators:**

    During the late 1990s, Chad\'s economy registered variable economic
    growth, depending largely on fluctuations in annual rainfall.
    Following a boom year in cotton production in 1998 when GDP rose by
    5 percent, GDP grew by 1.0 percent in 1999 and 0.6 percent in 2000.
    After two disappointing years (1999-2000), the Doba project sparked
    petroleum-led GDP growth of 8.9 percent in 2001 and 10.6 percent
    in 2002. In spite of Chad\'s vulnerability to variations in rainfall
    and world commodity prices, overall economic indicators were
    positive during the late 1990s and early 2000s, with real GDP growth
    averaging 3.7 percent between 1996 and 1999, and inflation ranging
    from two to four percent. Between 2000 and 2002, GDP continued to
    grow, although inflation rose, varying between five and seven
    percent. With a population growth rate of at least 2.5 percent, Chad
    needs high growth rates to increase per capita income.

    **Recent Sectoral Trends:**

    The agriculture sector registered nine percent decrease in cereal
    production for the 1999/2000 season followed by a 27 percent
    decrease for the 2000/2001 season. Production again decreased by
    nine percent in 2001/2002. Cotton production has fallen from a
    record 261.300 metric tons (Mt) in 1998 to 188,000 in 2001, although
    this was up from 161,400 Mt in 1999 and 140,000 Mt in 2000. Low
    producer prices and poor weather conditions have contributed to this
    decline. Cattle exports have risen to replace cotton as Chad's
    biggest export according to some estimates. After decreasing by 6.9
    percent in 1999 and 1.3 percent in 2000, the industrial sector grew
    by 13.7 percent in 2001, led by growth in construction. Gum arabic
    exports rose dramatically during the last decade, from 3,700 tons in
    1993 to approximately 13,357 tons in 2001. A third of Chad's gum
    arabic is exported directly to the U.S, and more is shipped via
    France for further processing.

    **Structural Adjustment Progress:**

    Relations with the World Bank and IMF remain on track. In December
    2001, the World Bank approved payment of USD 40 million under Chad's
    three-year Poverty Reduction and Growth Facility (PRGF, formerly
    Enhanced Structural Adjustment Facility or ESAF) loan. Approved in
    January 2000, the PRGF program will contribute USD 49.9 million over
    three years to support the government economic program from 1999 -
    2002.

    **Government Finance / External Debt:**

    While Chad continues to rely on foreign loans, since 1997 the
    government has improved its management of external debts. In May
    2001, the World Bank and the IMF announced Chad's eligibility for
    the HIPC debt relief initiative. Originally expected in December
    2000, this approval was delayed after the World Bank criticized the
    government for spending oil bonus revenues outside of prescribed
    channels on military expenditures. The HIPC program will offer USD
    17.8 million to reduce Chad's debt burden. USD 3.5 million will be
    disbursed initially. The final version of this plan is nearing
    completion, and interest on these loans is currently being forgiven.

    **Controversial Tax Policies:**

    Chad's fiscal policies have aroused much controversy in the business
    community. The fragile formal sector of the economy faces unfair
    competition from informal businesses that enjoy a lower tax burden.
    This long-standing controversy was heightened after the government
    began collecting a new Value-Added Tax on January 1, 2000. Tax
    authorities have responded by trying to encourage many informal
    businesses to improve their accounting practices and join the formal
    sector. Nevertheless, business leaders continue to demand more
    equitable tax policies.

2.  **PRINCIPAL GROWTH SECTORS**

    In the immediate future, the petroleum sector and related industries
    will continue to offer the most promising growth opportunities in
    Chad. The construction sector will continue to boom as the oil
    project completes its construction phase and the government invests
    in improving infrastructure and basic services. Growth in the
    construction sector may offer opportunities for U.S. suppliers of
    construction equipment and materials. Agriculture and processing of
    agricultural products may turn out to be more important to Chad\'s
    long-term growth. Significant opportunities may also exist in the
    mining sector, though there is a need for more systematic study of
    Chad\'s mineral resources. The telecommunications sector offers an
    important opportunity as the state telephone (and Internet service
    provider) monopoly is due to be privatized. Although this
    privatization has been frequently postponed, there is growing market
    demand in the cellular phone, satellite technology, and internet
    sectors.

    **Petroleum Sector:**

    In 2000, a consortium led by ExxonMobil began a USD 3.7 billion
    project to drill 300 oil wells, build production facilities and
    install a pipeline to the Cameroonian port of Kribi. Approximately
    USD two billion of this total is being invested in Chad. In addition
    to pipeline materials and oil production equipment, this project is
    importing other supplies such as vehicles, generators, construction
    materials and machinery. Most of the necessary services and supplies
    for this project were procured in 2001, although significant
    purchases and imports continue. In mid- 2003, the consortium began
    production, which will eventually yield 150,000 to 250,000 barrels
    of oil per day. Known reserves are estimated at one billion barrels.
    Additional exploration is under way in other regions of Chad and
    initial indicators suggest that Chad's reserves may be greater.

    Another project, currently on hold, would develop a smaller
    high-grade oil field in Sedigui, north of Lake Chad. A pipeline
    (which has been constructed, but is unusable at present) will
    connect Sedigui to a mini-refinery and a new power plant to be
    constructed near the capital city of N\'Djamena. The Sedigui project
    was initially tied to the Doba project with the same consortium
    collaborating with SEERAT, a Chadian company, to execute the
    project. In 2000, Sedigui was separated from the Doba project and
    awarded to CONCORP, a Sudanese company that has operated refineries
    in Sudan. CONCORP has had difficulty procuring the mini-refinery,
    and the project is stalled.

    In February 1999, Chad signed a significant licensing agreement with
    another U.S.-led consortium to conduct additional oil and gas
    exploration. This consortium sold this concession in 2000 to
    Cliveden, a Swiss company. The concession covers 437,000 square
    kilometers, roughly the size of Spain. Cliveden, working with the
    Canadian firm EnCana, is currently involved in seismic exploration.
    In the event of a commercially exploitable discovery, Cliveden has
    25-year exploitation rights.

    **Agricultural Sector:**

    Over the long term, many observers believe that Chad\'s greatest
    growth potential lies in the agricultural sector. Cotton will offer
    promising opportunities for trade and investment as the sector is
    privatized over the next three years. Chad is already a major
    exporter of cattle and the world\'s second-largest exporter of gum
    arabic. There is strong potential to export meat and processed
    animal products and to increase gum production as well as gum
    exports to the U.S. Significant opportunities exist for the
    commercialization of sesame and other food crops. A natural market
    for these products exists in neighboring Nigeria where over 120
    million inhabitants do not produce sufficient food for domestic
    needs. Nigeria already absorbs most of Chad\'s cattle exports,
    although informal trade barriers limit other exports. Most
    agricultural production currently uses traditional methods with
    consequently low yields. Chad offers high potential for improvements
    in productivity through increased investments in the agricultural
    sector.

    **Construction Sector:**

    The construction sector has already grown dramatically as
    construction of the Doba oil project continued in 2002. In addition
    to the oil project, the government and international donors are
    continuing to invest in basic infrastructure including roads,
    schools, health centers and potable water points. The construction
    sector may offer excellent opportunities to U.S. suppliers of
    engineering services, construction equipment and specialized
    construction materials. The Ministry of Public Works (see Chapter 11
    for contact information) coordinates public construction projects.

    **Mining Sector:**

    There is potential for considerable growth in the mining sector.
    During the 1990s, several geological and mineralogical research
    projects were initiated by the Directorate for Geological and Mining
    Research (DRGMR) and funded by the United Nations Development
    Program. (UNDP). Initial results have been encouraging. The
    government is also interested in beginning a systematic geological
    survey of the country, and in compiling an inventory of mineral
    sources. The country could possibly have large deposits of precious
    and industrial metals. In 2001, a South Korean company, AFKO, began
    to exploit gold in the Mayo Kebbi region. Base metals, copper,
    silver and zinc have been discovered, but are uneconomic to exploit.
    Chad has uranium deposits in the far north. There is excellent
    potential for discovery of other metals such as tungsten, tin, iron
    ore, and bauxite.

    **Industry:**

    Significant opportunities exist in the processing of agricultural
    commodities such as oilseeds, fruit and animal hides. A number of
    investors have shown interest in building a cement factory in the
    Mayo Kebbi region where proven resources exist for cement
    production. Other investors are interested in producing detergent
    and establishing assembly operations for commonly used agricultural
    equipment. Light industry could show more potential if the cost of
    electrical generation can be reduced to a reasonable rate. The
    current cost of 238 CFA (35 cents) per kilowatt-hour (kWh) renders
    most industrial ventures uncompetitive. Energy costs may eventually
    fall as the energy sector is privatized. Alternative energy sources
    such as solar and thermal may also be promising.

    **Telecommunications:**

    The government of Chad plans to continue to liberalize the
    telecommunications sector. In 2000, the local phone service was
    detached from the postal service and combined with the international
    phone and Internet service to form a new company, SotelTchad. The
    government intended to privatize SotelTchad through an international
    tender, but this plan is currently in limbo. In 2000, two cellular
    companies, Celtel and Libertis, began offering cellular services in
    N'Djamena. Cell phone users now greatly outnumber land-line users in
    Chad, with subscriptions still on the rise. The telecommunications
    sector has potential for modernization and growth through the
    extension of fixed and mobile phone networks and the introduction of
    new services, if products and services can be offered at accessible
    prices.

3.  **GOVERNMENT ROLE IN THE ECONOMY**

    Over the past decade, the government of Chad has made progress in
    privatizing state enterprises, eliminating price controls and
    liberalizing the economy. The government intends to continue this
    process by privatizing remaining state enterprises and liberalizing
    all major sectors.

    During the past nine years, the Chadian government has privatized 16
    state-owned companies and liquidated 14 companies. In 1999 and 2000,
    the government privatized the N'Djamena slaughterhouse; three banks:
    BTCD (now SGTB), BDT (now CBT) and BIAT; and the state sugar
    company, SONASUT (now CST, Compagnie Sucrérière du Tchad). In the
    energy sector, an agreement was signed for Vivendi (formerly
    Generale des Eaux) to manage the state-owned enterprise for a period
    of two years beginning in September 2000; this general agreement has
    been extended. Similar arrangements for foreign management of
    state-owned properties have been made with the Meridien Group and
    the Accor Group to manage the Chari Hotel and the Novotel,
    respectively.

    This process is expected to continue with the privatization of the
    cotton parastatal, CotonTchad. Due to the national importance of
    this sector, the privatization process has proceeded gradually. The
    Cotton Sector Reform Committee (CTRC) is collaborating closely with
    the World Bank and the French Development Agency (AFD) to plan and
    implement cotton sector reforms. CotonTchad's oil and soap making
    operations have been separated from ginning operations to create a
    separate entity, Direction Huilerie Savonerie (DHS). DHS is being
    privatized through an international tender launched in June 2002.
    The CTRC is currently searching for a consulting firm to plan the
    privatization strategy for CotonTchad's remaining ginning and sales
    activities.

    The government is also planning to privatize several additional
    companies. In January 2002, SNER, a road construction and
    maintenance company, was sold to ARCORY, a Sudanese company. The
    government still intends to privatize the state telecommunications
    company, SotelTchad, but this process has stalled after the
    government issued a second cellular license through non-competitive
    procedures, in violation of structural reform agreements. The
    government also wants to resurrect and privatize Chad's dormant
    textile company, Cotex, but no clear plans have been established for
    this process.

4.  **BALANCE OF PAYMENTS SITUATION**

    Over the past several years, international financial institutions
    have generally been satisfied with Chad\'s balance-of-payments
    situation. Since Chad began its first structural adjustment program
    in 1995, the GOC has collaborated with donors to assure that some
    budgetary needs are financed by foreign aid. Through this
    collaboration, Chad even managed to run a small budget surplus
    in 1998. In recent years, Chad\'s external current account deficits
    have ranged between 17 and 21 percent of GDP, considered acceptable
    by developing-country standards. Chad has maintained acceptable
    levels of debt and the government has generally met its repayment
    schedule. Chad's economy is heavily dependent on foreign aid and it
    will likely remain so for the next several years. France contributed
    well over USD 300 million in the 1990s, or roughly 30 percent of all
    international financial assistance. In 2001, France contributed over
    USD eight million and the EU more than USD 850,000. With foreign
    donors gaining confidence in Chad, the Central Bank estimates 2002
    assistance to Chad at USD 238 million, including USD 200 million
    committed by the European Union for efforts through 2007. The major
    portion of foreign aid goes towards structural adjustment and
    targeted development projects. Due to the small size of its
    manufacturing sector, Chad remains dependent on foreign imports for
    capital equipment and many consumer goods.

    Chad\'s current account deficits do not imply a convertibility risk
    for Chad\'s currency. As a member of the Central African Economic
    and Monetary Community, Chad shares a currency (the Central African
    CFA franc), which is guaranteed by the French treasury. Under this
    arrangement, the Central Bank of Central Africa (la Banque des Etats
    d\'Afrique Centrale - BEAC) maintains strict control over the supply
    of currency.

5.  **INFRASTRUCTURE**

    Even by developing countries\' standards, Chad\'s infrastructure is
    remarkably poor, but some improvements are underway. One of Chad\'s
    biggest commercial handicaps is the inferior quality of
    transportation links within the country and with commercial ports in
    Cameroon. Chad\'s internal road network is mostly unpaved and
    stretches are impassable for up to five months during the rainy
    season. Nevertheless, an important road connecting the capital city
    of N\'Djamena to the agricultural and industrial centers in the
    south has recently been paved. Other projects will pave the road
    linking Chad\'s agricultural center of Moundou with the railroad
    terminal in Ngaoundere, Cameroon, which is already connected to the
    port of Douala. There are four flights weekly from Paris and
    non-stop flights to Ethiopia, Cameroon, and Mali, all of which offer
    connections to other African countries.

    Chad\'s telecommunications infrastructure is limited and expensive.
    Internet service is available and two cellular services began
    operating in N'Djamena in late 2000. The postal system offers
    express mail service along with the international courier service
    (EMS), but domestic service is unreliable; in 2002, for example,
    postal workers were on strike for over six months, completely
    shutting down the mail service. DHL has offices in Chad and provides
    international shipping services. Electricity is expensive in the
    capital and practically non-existent in the rest of the country.
    Electricity shortages are common and outages remain a near-daily
    occurrence.

6.  **REGIONAL ECONOMIC INTEGRATION**

As a member of the Central African Economic and Monetary Community
(Communauté Economique et Monétaire de l\'Afrique Central - CEMAC), Chad
is collaborating with other CEMAC members to standardize tax and customs
regimes throughout the region. As part of this process, Chad implemented
a Value-Added Tax of 18 percent beginning on January 1, 2000. CEMAC
members have also agreed to eliminate tariff barriers between member
countries for many basic products. Though these changes are positive,
illegal tax collection continues to impede the free flow of goods. In
addition, Chad is in a relatively poor geographic position to benefit
from CEMAC reforms. Regional integration with non-CEMAC member Nigeria
could offer a more promising market for Chad\'s agricultural products.

# CHAPTER 3: POLITICAL ENVIRONMENT

**1. Nature of Political Relationship with the U.S.**

The U.S. enjoys a good bilateral relationship with Chad. Although the
USAID office in N'Djamena closed in 1995, the U.S. continues modest
assistance through food aid, demining, democratization and other
humanitarian programs. The Peace Corps, which suspended operations in
April 1998, is in the process of returning to Chad. Peace Corps
administrative staff are in place, and volunteers are expected in
mid-Fall 2003. For much of the last decade, the USG was sharply critical
of human rights practices in Chad. In some areas, such as freedom of
press and freedom of expression, significant improvements have been made
over the conditions under previous political regimes. In other areas,
the Government\'s human rights record has remained poor, particularly in
the sometimes-unregulated behavior of the security forces and the near
impunity they enjoy.

2.  **Major Political Issues Affecting the Business Climate**

Since independence in 1960, war, drought and famine have severely
damaged Chad\'s institutions, its infrastructure and its chances for
outside investment. In recent years, the country has exhibited signs of
political stability, social reform, and economic recovery. After a
period of conflict with Libya in the 1980s and more recent disputes with
the Central African Republic, Chad currently enjoys good relations with
most of its neighbors. Judicial reforms are underway with the
establishment of a Supreme and Constitutional court and some progressive
revisions of the investment code. Government corruption remains an
issue, although the Parliament passed anti-corruption legislation in
1999.

During the past four years, a rebellion in the far northern Tibesti
region has created a perception of instability that has sometimes
affected the business climate. After a series of battles in late 2000,
this rebellion was mostly quiet until fall 2002, when it started once
again. While still a potential threat to the current government, the
rebellion seems to have petered out and in any case is centered in the
Tibesti Mountains, quite far from Chad\'s commercial centers. Some of
these rebels and members of most other armed opposition groups have
reconciled with the government, joining the ranks of the regular army or
being reintegrated into civilian life.

3.  **Relations Between Federal Executive and Regional Leaders**

Appointment of all of Chad\'s regional governors is controlled by the
Presidency through the Ministry of Territorial Administration. Chad is
implementing a decentralization process, redefining administrative
divisions in order to bring local administration closer to its
constituents. As part of this process, 17 new governors were named in
February 2003 and have assumed their positions. The former regional
prefects retained their titles, but now report to the new governors
rather than the central government in N'Djamena. Regional and municipal
elections are planned for November 23, 2003.

4.  **Brief Synopsis of the Political System, Schedule for Elections and
    Orientation of Major Political Parties**

The Government of Chad is dominated by a strong Presidency with
effective control over budgetary allocations, the legislative agenda and
judicial appointments. President Idriss Deby originally took power by
military means in 1990. Following a lengthy transition process, Chadians
voted to approve a new Constitution in 1996. This was followed by
Presidential elections in mid-1996, and legislative elections in early
1997.

Amid widespread, credible reports of fraud, President Deby\'s won an
easy victory and his party, the Patriotic Salvation Movement (MPS) won a
comfortable majority in the National Assembly. In May 2001, another
presidential election was held under similar conditions with similar
results. Following his 1996 victory, President Deby collaborated with
some of his principal rivals with a policy of \"Consensual Democracy\"
(DCP), offering various political and administrative posts to members of
rival political parties. Since the contested 2001 election, President
Deby's MPS has sought to consolidate power in the executive and
legislative branches, and has become increasingly isolated from its
former collaborators. The constitution establishes a limit of two
five-year presidential terms, and President Deby's second term ends in
2005. The MPS and a handful of allied parties won an overwhelming
majority of seats in the April 2002 legislative elections.

Political parties tend to be based on personalities and ethnic or
regional ties rather than issues or ideologies. In addition to MPS,
other major parties include the URD (party of General Wadal Abdelkader
Kamougue, former President of the National Assembly), UNDR (party of
former Agricultural Minister Saleh Kebzabo), UDR (party of Jean Bawoyeu
Alingue) and the federalist FAR (party of Ngarlejy Yorongar). Mr. Moussa
Faki Mahamat became Prime Minister in the cabinet reshuffle that
produced the Government of June 25, 2003.

**CHAPTER 4: MARKETING U.S. PRODUCTS AND SERVICES**

Chad has a market of approximately 8.9 million consumers, with a per
capita income in the range of USD 237. The majority of Chadians are
non-income-generating subsistence farmers. Approximately one million
people live in the capital, N\'Djamena, and its residents have a
disproportionate share of Chad\'s purchasing power. There are two other
urban centers in the south with industrial and banking facilities,
Moundou (population 136,000) and Sarh (population 103,000). Organized
distribution of goods is centered in these cities while informal
retailers serve other areas.

Marketing in Chad requires patience, cultural sensitivity and knowledge
of the country and its people. It is essential to make important
business and government contacts in person and \"to get to know the
territory.\" Business languages are French and Chadian Arabic (Chadian
Arabic has some substantial differences from Classical Arabic). Few
people speak English, so it is often worthwhile to engage an agent and
an interpreter. The variety of products on the Chadian market limited.

1.  **Distribution and Sales Channels**

Sales methods vary according to the category of merchandise, but most
foreign companies distribute through agents and importers based in
N\'Djamena. Occasionally, partners can be found in the southern cities
of Mondou and Sarh, partly due to the increase in commerce spurred by
the Doba oil project. Import-export houses usually also serve as agents
or wholesale distributors for the products they import. Distribution is
unstructured and most retailing is conducted by informal businesses.
Very poor roads impede distribution of goods within Chad. Many durable
goods such as new vehicles, machinery and household appliances are
distributed through a small number of retailers in N\'Djamena and are
virtually unavailable outside of N\'Djamena. Consumable goods are most
often marketed through wholesale agents and retailers in the capital who
sell to informal retailers. Many Chadian retailers also procure supplies
in the neighboring countries of Cameroon and Nigeria, while others
travel to the United Arab Emirates (in particular Dubai), Saudi Arabia,
and other Middle Eastern countries due to good airline connections
through Addis Ababa, Ethiopia and Arabic-language packaging.

Capital goods and some merchandise can be exported directly to a small
number of buyers. Fertilizer and insecticide are procured in large
quantities and distributed by CotonTchad. Printing supplies, packaging
materials, paint ingredients, and industrial machinery are imported by a
small number of industrial enterprises. Pharmaceutical products are
distributed to private pharmacies by Laborex, the lone wholesaler, and
to public health centers by the government, which periodically posts
international tenders for procurement. Packaging is usually in French.

2.  **Use of Agents and Distributors, Finding a Partner**

Use of an agent may not be necessary for some projects, but it is
usually advisable for foreign firms to retain a representative in Chad
to help them penetrate the Chadian market. A local agent should be
fluent in French and/or Chadian Arabic and possess thorough knowledge of
the local economy. For products requiring maintenance, it is important
for an agent to assure after-sales support and to stock a reasonable
supply of spare parts. Local agents/distributors are not exclusive and
carry many product lines, but they may sometimes request exclusive
distribution rights. European competitors have years of experience
working with local companies and they often cite proximity and long-term
cultural relationships as marketing advantages. The U.S. Commercial
Section of the U.S. Embassy can help U.S. exporters locate agents and
distributors through the Agent Distributor Service (ADS) program.
Information regarding this program is available through the Commercial
Service district offices located in all 50 states and Washington, D.C.
For further information, exporters may contact the Department of
Commerce at 1-800-USA-TRADE (1-800-872-8723) and
[www.usatrade.gov](http://www.usatrade.gov/) or the U.S. Embassy
N'Djamena Commercial Office:

> U.S. Embassy N'Djamena
>
> Commercial Section
>
> Ave. Felix Eboué, BP 413
>
> N'Djamena, Chad
>
> Tel: (235) 51-70-09; Fax (235) 51-56-54
>
> [dembatk@state.gov](mailto:gazisac@state.gov)

3.  **Franchising**

Franchising opportunities are currently limited, but the Doba oil
project and the related influx of expatriate workers may eventually
provide a boost in this area. Some small international car rental
companies and hotel chains currently operate in Chad. Food, service and
other types of franchises are possibilities, but factors such as
transportation, hygiene standards, unreliability of suppliers, energy
costs, and a limited market may impede such initiatives.

4.  **Direct Marketing**

In the future, improvements in the economy, roads, and communications
will allow for an expanded range of direct marketing practices. Some
major Japanese and French automobile manufacturers are successful and
remain unchallenged by U.S. automobile makers. Most goods sold in Chad
are from wholesale import/export houses. Examples include clothing
(including used clothing), grains, flour, pharmaceuticals, personal care
products, foodstuffs, hardware, household goods, appliances,
televisions, and radios. Many of these products enter Chad through
informal channels, as collusion between smugglers and customs agents is
common. Unofficial imports include petroleum products, consumer goods,
sugar, soap and cigarettes. Most retail businesses are small-scale,
proprietary operations. Internet and catalog marketing are nonexistent.

5.  **Joint Ventures and Licensing**

Chadian law permits and encourages joint venture partnerships. One
hundred percent U.S. ownership is allowed. Some U.S. joint ventures are
currently operating as contractors for the Doba oil project. Joint
ventures may be particularly useful when mid- and long-term maintenance
services are required for capital equipment or in projects requiring
significant local investments.

**Licensing:**

U.S. licensers may have difficulty in finding prospective Chadian
licensees with manufacturing and marketing capabilities. Patenting and
licensing are available but not enforced. Enforcement of intellectual
property rights, trademarks, and patents is rare. Protection against
copyright infringements cannot be guaranteed. Counterfeits of well-known
trademarks in personal care products, sports equipment, textiles,
watches, etc. are available on the local market, though they are not
produced locally. Coca-Cola has successfully licensed production and
distribution of its products to a French company operating in Chad.

 

6.  **Steps to Establishing an Office**

Organizing and registering an office in Chad can be time-consuming since
there are many different requirements but no one-stop registration
service. It is advisable to engage an agent or a local attorney to
navigate the registration process. Companies seeking to establish
offices in Chad must fulfill the following formalities:

a\. File a declaration of foreign direct investment with the Ministry of
Finance (if necessary);

b.  Register a signed and certified copy of company by-laws with the
    Ministry of Finance (Service d\'Enregistrement, des Domaines et du
    Timbre);

c.  Pay a registration tax valued at 3 percent of the total capital;

d.  Obtain an administrative authorization for commercial activity from
    the Ministry of Commerce;

d\. Register the company with the commercial registry;

e\. Make a formal announcement through legal journals/newspapers
proclaiming the existence of the company;

f.  Make a declaration of the company to the central tax services of the
    Ministry of Finance (Fichier Central du Controle Fiscale);

g.  Inscription on the tax rolls;

h.  Register the company by-laws with the court clerk (Greffier du
    Tribunal d'Instance) at the Ministry of Justice;

i.  Declare the company's existence to the Social Security agency
    (Caisse Nationale de Prevoyance Sociale);

j.  Declare the company\'s existence to the Labor Inspection Office
    (Inspection du Travail);

k.  Declare the company\'s existence to the National Employment
    Promotion Office (l\'Office Nationale pour la Promotion de
    l\'Emploie, ONAPE).

Many of these procedures are routine, but the most difficult hurdle is
the acquisition of administrative authorization from the Ministry of
Commerce and Industry. Several reputable consulting firms are available
to facilitate this process (see Chapter 11 for contact information).

There are three main types of companies, all based on French models:

1\) Affiliate or Branch Office (Succursale): A foreign company may
install a business in Chad in the form of a branch office either
independently or with a Chadian partner.

2\) Limited Liability Company: (Societé a Responsabilité Limité - SARL):
This category corresponds to the French SARL. A minimum of two
individuals is needed to create a SARL, but the law states that SARL
partners are not permitted to cede parts of the operation without the
consent of 3/4 of the association.

3\) Corporation (Societé Anonyme - SA): A \"Societé Anonyme\" has the
same characteristics as a \"Societé Anonyme Francaise.\" French
corporate law of 24 July 1966 stipulates that there must be at least
seven shareholders. Financial responsibility is limited to each
individual\'s financial contribution of capital.

Both SARLs and SAs require a minimum amount of start-up capital, which
must be available when the company is created. This amount varies
according to different categories (USD amounts based on an exchange rate
between 550 and 600 FCFA per dollar):

-Category B1 import company minimum capital - 20 million CFA (USD
32,500-36,000)

-Category B2 export company minimum capital - 10 million CFA (USD
16,000-18,000)

-Category C wholesale company minimum capital - 10 million CFA (USD
16,000-18,000)

-Category D wholesale-retailers minimum capital - 5 million CFA (USD
8,000-9,000)

-Category E retailers minimum capital - 1 million CFA (USD 1,600-1,800)

-Category F small retailers minimum capital 250,000 CFA (USD 400-450)

Corporations are required to invest 10,000,000 CFA in start up capital
for categories D, E and F. Minimum capital requirements are the same as
a SARL's for categories B1, B2 and C.

All foreigners who engage in any commercial activity must eventually
obtain a Commercial work permit ("Carte de commercant etranger"). The
following items are required:

a)  Two application forms;

b)  A medical certificate less than three months old (easily obtained at
    the Polyclinic);

c)  Copies of a police/criminal record (Extrait de Casier Judiciaire),
    also easily obtained at the Courthouse);

d)  By-laws of the company;

e)  A long-term visa (Carte de Sejour);

f)  A birth certificate;

g)  Administrative authorization from the Ministry of Commerce and
    Industry;

h)  The registration act of the commercial registry;

i)  The fiscal registration issued by the Ministry of Finance, Office of
    Service d\'Enregistrement, des Domaines et du Timbre, with the
    fiscal data stamps;

j)  A letter of corporate intentions and functions;

k)  The annual merchant trading license (patente);

l)  Proof of a bank account;

m)  Copies of diplomas and curriculum vitae;

n)  Two passport-size photographs and

o)  Two fiscal stamps valued at 3,000 CFAF.

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7.  **Selling Factors / Techniques**

Chadian business customs tend to be less formal than American values
with more emphasis on personal contact. As opposed to the American \"get
down to business\" approach, Chadians prefer to build mutual trust and
understanding by developing a personal relationship. Every effort should
be made to visit Chadian clients in person, to understand the country\'s
traditions, its social composition and its commercial environment.
Because Chad is a traditional country, businesswomen should dress
conservatively. Even if a translator is required, learning simple
pleasantries in French or Chadian Arabic can be very helpful.

Like other former French colonies, Chad maintains strong cultural and
economic ties with France. Nevertheless, young Chadian entrepreneurs are
increasingly looking beyond the traditional European markets. They often
find the imagination and technology of U.S. marketing approaches
refreshing and inspirational, and several are already working with U.S.
partners. The Commercial Section at the U.S. Embassy in N'Djamena works
closely with these business contacts to keep them informed of
opportunities and activities in the U.S. market and how to work with
U.S. partners.

8.  **Typical Pricing Structures**

The Chadian market is largely driven by negotiation and, aside from the
larger stores in N'Djamena and some other cities, there is no evident
pricing structure. As in most African countries, most informal retailers
first present an exorbitant price and eventually reduce this price after
a spirited negotiation with the buyer. The larger retailers in the
formal sector do not follow this practice.

U.S. export companies can invoice in Euros. Billing invoices should be
computed on a Cost and Freight basis (C&F). Exporting companies have
difficulty finding multinational shipping insurance firms to ensure
indirect air or sea shipments to Chad. The shipper or consignee usually
covers the insurance portion of the delivery cost. Local commercial
credit is extremely difficult to obtain. Commercial transactions should
be made through an irrevocable letter of credit confirmed by a reputable
bank. Credit terms of up to ninety days are available. European banks
with U.S. corresponding or non-corresponding banks may offer more
generous terms. Transport companies ("transitaires" and "agents
sous-douanes") can assist with import/export formalities. Local banks
are able to handle payment guarantee services and documentation.

9.  **Advertising and Trade Promotion**

There is very little advertising and sales promotion in Chad. There are
several news publications (daily and weekly) circulating in N\'Djamena
and other major Chadian cities, most of which are in French. Newspaper
runs are limited in quantity and distribution, and circulation figures
are small due to transportation costs, low literacy rates, and poverty.
The most widely-read weekly paper is the N\'Djamena Bi-Hebdo, an
independently owned paper. Other weekly newspapers include
L'Observateur, Le Temps and Notre Temps. There are two daily papers, Le
Progrès and the official InfoTchad, published Monday through Friday.
Monthly publications include Tchad & Culture, Grenier, Carrefour and
Audy Magazine.

There is a very limited television audience in N\'Djamena but a far
larger French and Arabic radio audience, though not all areas of the
country are served. There are only two movie theaters in town, the Rio
and the Shaherazade, which do not meet Western standards. There are also
dozens of video theaters. There is limited short film advertising of
products (either on TV or in the theaters). Chadians are not very
familiar with audio/visual or newsprint consumer oriented advertising.
Billboards are widely used in Chad\'s major cities. Major news media can
be contacted at the following addresses:

**Radio and Television:**

> Radiodiffusion Nationale Tchadienne (RNT)
>
> BP 892 N\'Djamena, Chad
>
> Tel: (235) 51-60-71 / 51-53-53 / 51-49-64
>
> **Director:** Abba Ali Kaya
>
> Tele-Tchad (TV Tchad)
>
> BP 274, N\'Djamena, Chad
>
> Tel: (235) 52-26-79; Fax: (235) 52-29-23
>
> **Director:** Khamis Togoi

**Daily, Weekly and Monthly Press:**

> Agence Tchadienne de Presse (ATP)
>
> B.P. 670, N\'Djamena, Chad
>
> Tel: (235) 52-58-67; Tel/Fax: (235) 52-37-74
>
> **Director:** Mr. Acheikh Abakar Hassan
>
> LE PROGRES
>
> B.P. 3055, N\'Djamena, Chad
>
> Tel: (235) 51-55-86; Fax: (235) 51-07-56
>
> **Contact:** Directeur de Publication, Abderamane Barka
>
> N'DJAMENA-HEBDO
>
> B.P. 4498, N\'Djamena, Chad
>
> Tel: (235) 51-53-14; Fax: (235) 52-53-14 / 52-14-98
>
> **Contact:** Director of Publication, Yaldet Begoto Oulatar
>
> E-Mail: <ndjh@intnet.td>
>
> LE TEMPS
>
> B.P. 1333, N\'Djamena, Chad
>
> Tel: (235) 51-70-28; Fax: (235) 51-99-24
>
> **Contact:** Director of Publication, Michael Didama
>
> E-Mail: <temps.presse@intnet.td>
>
> L\'OBSERVATEUR
>
> B.P. 2031, N\'Djamena, Chad
>
> Tel: (235) 51-80-05; Fax: (235) 51-80-05
>
> **Contact:** Director of Publication, Sy Koumbo Singa Gali
>
> E-Mail: <observer.presse@intnet.td>
>
> NOTRE TEMPS
>
> B.P. 6145, N'Djamena, Chad
>
> Tel/Fax: (235) 53-46-50

::: Definition-Term
> **Contact:** Director of Publication, Nadjikimo Benoudjita
:::

> TCHAD & CULTURE
>
> B.P. 907, N\'Djamena, Chad
>
> Tel: (235) 51-54-32 / 51-71-42; Fax:(235) 51-91-50
>
> **Contact:** Directeur de Publication, Ronelngue Toriaira
>
> E-mail: [*cefod@intnet.td*](mailto:cefod@intnet.td)
>
> GRENIER (Monthly Economic and Financial Journal)
>
> B.P. 1128, N\'Djamena, Chad
>
> Tel: (235) 53-30-14; Fax: (235) 52-14-98
>
> **Contact:** Directeur de Publication
>
> E-Mail: <cedesep@intnet.td> or <journal.grenier@hotmail.com>
>
> CARREFOUR
>
> B.P. 456, N\'Djamena, Chad
>
> Tel: (235) 52-42-54
>
> **Contact:** Directeur de Publication, Nadia Karaki
>
> E-Mail: <almouna@intnet.td>
>
> AUDY (women\'s magazine)
>
> B.P. 780, N'Djamena
>
> Tel: 51-49-59
>
> **Contact:** Ms. Agouna Grace
>
> E-Mail: <amagtchad@yahoo.fr>

10. **Sales Service / Customer Support**

Sales services support is available for some construction equipment,
vehicles, computer hardware, software, office equipment, photocopiers,
air conditioners, and major household appliances. Distributors sometimes
provide maintenance services. After-sales support is essential, and
stocks of spare parts must be readily at hand to ensure market success.
Service manuals must be in French, as Chadian Arabic is generally not
written.

11. **Selling to the Government**

The Chadian government periodically announces procurement tenders. These
tenders are published in the local press and occasionally in the
international press. Legal tenders (appels d\'offre) are issued by the
ministry supervising the procurement in collaboration with the Public
Procurement Office (Direction des Marches Publics), part of the Prime
Minister's office. The Secretariat General du Gouvernement (SGG) is also
sometimes responsible for receiving and deciding tenders on behalf of
the requesting ministries. Multilateral lending institutions usually
finance large procurements. In addition, host country procurement
(called \"prudent shopping\") is available to the various government
ministries for small project expenditures. In theory, all procurement
tenders are subject to free and open competition, although manipulation
of the bidding process sometimes occurs. 

12. **Finding a Local Partner and Attorney**

In recent years, Chadian law has undergone frequent revisions. It is
therefore useful to engage a local attorney familiar with the
Organisation pour l\'Harmonisation du Droit des Affaires en Afrique
(OHADA) acts and with local laws. A major portion of the French legal
system remained in place after independence in 1960, and Chad continues
to use French law as a reference. Most local lawyers do not speak
English and have limited familiarity with U.S. commercial law.

The Embassy Commercial and Consular Sections maintain a list of local
attorneys.

13. **Performing Due Diligence / Checking Bona Fides**

PriceWaterhouseCoopers, Fidafrica, and Ernst & Young, Helios Afrique,
and other accounting and business advisory companies in N'Djamena can
perform due diligence and bona fides services. For additional
information, see Chapter 11, list of international accounting firms)

**CHAPTER 5: LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT**

1.  **Best Prospects for Non-Agricultural Goods and Services**

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1.  Oil Production Equipment and Services (OGM/OGS)

2.  Construction Equipment (CON), Mining Equipment (MIN), Agricultural
    Machinery (AGM)

3.  Electric Power Systems (ELP) / Generators

4.  Building Products (BLD) / Hardware

5.  Electrical Equipment, Computer Equipment and Parts (CPT)

6.  Food Processing/ Packaging Equipment and Materials (FPP)

7.  Telecommunications Equipment (TEL) and Services (TES)

8.  Pharmaceuticals (DRG) / Medical Supplies (MED)

**Introduction:** Chad's imports rose in 2002 but are expected to have
fallen by the end of 2003 as the Doba oil project transitions from the
construction to production phase. Imports for 2003 and beyond, however,
are still anticipated to be at much higher levels than before the onset
of oil activity.

According to the IMF, Chad's imports of goods and services rose from USD
529 million in 2001 to USD 913 million in 2002. France has historically
supplied the largest share of imports, usually around one third of the
total, but relative shares have changed as the Doba oil project has
increased the US share. Through the mid- to late-1990s, the U.S.
provided around 5 percent of Chad\'s imports (for example, roughly USD
20 million in 1998), but this share is rising sharply. The International
Trade Commission has estimated that U.S. exports to Chad rose from USD
2.7 million in 1999 to USD 10.8 million in 2000, USD 137 million in
2001, and USD 127.34 million in the first half of 2002. Chad\'s other
main suppliers include Cameroon, Nigeria and several European and Middle
Eastern countries.

Prior to the Doba project, approximately 15 percent of Chad\'s imports
were fuel products mainly from Cameroon and Nigeria. Other large
categories included mechanical machinery (9 percent), flour (7.5
percent), vehicles and parts (7.5 percent), sugar (6.4 percent), cement
and related products (5.6 percent), electrical machinery (5.5 percent),
fertilizer (5.2 percent) and pharmaceutical products (4.2 percent). A
large proportion of even the simplest consumer goods is imported from
Cameroon and Niger, such as candles, matches, and cooking implements.
Although equipment and services for the Doba project has now changed the
overall balance of imports, these traditional imports are still
essential to Chad's economic growth, as these types of goods are rarely
produced in the country

**Principal U.S. exports to Chad include**: Petroleum industry equipment
and supplies, generating equipment, mechanical and electrical machinery
(including cotton ginning equipment); hardware; wheat flour;
insecticides; cellulose acetates; medical equipment, pharmaceutical
products; auto parts; tires and tire tubes; and used clothing.

**A Note on Trade Estimates:** Chadian trade statistics are notoriously
inaccurate since they are based on customs declarations. Given the
pervasive problems of smuggling and corruption in the customs
department, official figures systematically underestimate actual
imports, especially those from neighboring countries such as Cameroon
and Nigeria. Trade figures for many categories vary quite dramatically
from year to year, so it is difficult to estimate current trade figures
from this data. The estimates in this Country Commercial Guide apply
past commercial trends to the total estimated value of imports for while
accounting for known imports for the Doba oil project.

Some of the categories below are based on customs categories for which
old statistics are available, while other categories combine
opportunities for trade and investment.

**1) OIL PRODUCTION EQUIPMENT AND SERVICES (OGM/OGS)**

  ------------------------------------ ----------- ----------- ----------
  **Data Table (in millions of USD)**  2001        2002        2003
                                                               (Est.)

  Total Market Size                    275         591.3       213

  Total Local Production               0           0           0

  Total Exports                        0           0           0

  Total Imports                        275         591.3       213

  Imports from the U.S.                N/A         370.6       145
  ------------------------------------ ----------- ----------- ----------

The above figures are unofficial estimates. According to the Central
Bank (BEAC, or Banque des Etats de l'Afrique Centrale), however, Chad's
imports of services in 2001 were valued at USD 520 million, with most of
this rise due to the Doba project. These are very rough estimates since
details on Doba project imports were unavailable.

Comments: By the completion of the construction phase in late 2003, the
oil consortium will have invested an estimated USD 3.7 billion in the
construction of a 1,050 kilometer pipeline from southern Chad to the
coast of Cameroon and the development of the oil fields in Chad. The
project is now transitioning to the production phase, oil export having
begun in mid-2003. While the shift from construction will decrease
import opportunities in the Doba Basis, there will be a continuing
demand for oil equipment and services, with production and export
expected to last approximately 20 years. In addition, the consortium has
emphasized its intention of maximizing business opportunities for local
suppliers. As a result, U.S. companies may find it useful to initiate
partnerships with local firms or to establish subsidiaries in Chad.

A Swiss company, Cliveden Petroleum, has obtained a concession for oil
exploration covering 437,000 square kilometers. Cliveden, working with
the Canadian firm EnCana, has begun seismic testing and exploration of
needs for a shift to drilling and export. The consortium has 25-year
exploitation rights. This second consortium has already begun working
with several U.S. firms.

**2) Construction, Mining and Agricultural Equipment (CON, MIN, AGM)**

  ------------------------------------ ----------- ----------- ----------
  **Data Table (in millions of USD)**  2001        2002        2003
                                                               (Est.)

  Total Market Size                    84.2        96.8        96.8

  Total Local Production               0           0           0

  Total Exports                        0           0           0

  Total Imports                        84.2        96.8        96.8

  Imports from the U.S.                N/A         N/A         N/A
  ------------------------------------ ----------- ----------- ----------

The above figures are unofficial estimates. Note: The different types of
mechanical equipment are grouped into one customs category.

**Comments**: Construction, Mining and Agriculture are three sectors
with strong growth potential in Chad. Although the construction phase of
the Doba oil project is nearing completion, there will be ongoing demand
for maintenance of current equipment and the construction of public
facilities. For example, the project requires different types of
equipment to build production facilities, roads, housing, and associated
infrastructure. Equipment to pave, grade, and maintain roads will be
necessary for the numerous road projects planned in the coming years.
Other projects will require construction equipment to increase public
access to schools, health centers and potable water. The following road
pavement projects are planned by the Ministry of Public Works and
Transport through 2004 (anticipated funders are in parentheses):

Massaguet-Bisney, USD 26.7 million (Islamic Development Bank)

Bisney-Ngoura USD 14.7 million (African Development Bank)

Oum Hadjer-Abeche USD 24 million (Taiwan)

Kelo-Moundou USD 21 million (European Union)

Moundou-NgaoundereUSD 65 million (European Union)

Moundou-Doba USD 21.7 million (European Union)

Doba-Sarh USD 30 million (European Union)

Foreign firms have yet to explore in depth the rich possibilities in the
mining sector. Aside from recent efforts of South Korea's AFKO to
extract gold from the Mayo-Kebbi region, there has been little
investment in this area. Other minerals discovered in Chad include
uranium, bauxite, tin, tungsten, titanium, and iron ore, although there
is still a need for a more systematic mining survey.

Agriculture remains the backbone of the Chadian economy and significant
opportunities exist for U.S. suppliers of agricultural equipment. Most
of Chad\'s agricultural production uses traditional (human and animal
powered) materials, but producers are increasingly interested in
acquiring more advanced machinery. With 80 percent of the population
consisting of low-income subsistence farmers, a sturdy low-cost mill
suitable for producing flour from millet and sorghum could find a
market.

Opportunities also exist for the supply of irrigation and water supply
equipment. Although the extreme dryness of much of the country causes
the loss of a high percentage of irrigation water due to evaporation,
drip irrigation is unknown. During the next several years, the National
Water Office will supervise several water-supply projects funded by
France, Germany and the EU.

**3) Electric Power Systems / Generators (ELS)**

  ------------------------------------ ----------- ----------- ----------
  **Data Table (in millions of USD)**  2001        2002        2003
                                                               (Est.)

  Total Market Size                    13.6        26.9        26.9

  Total Local Production (millions of  101.5       106.6       106.6
  kWh)                                                         

  Total Exports                        0           0           0

  Total Imports                        N/A         N/A         N/A

  Imports from the U.S.                N/A         N/A         N/A
  ------------------------------------ ----------- ----------- ----------

The above figures are unofficial estimates, and is exclusive of
electricity self-produced by the oil consortium in southern Chad. Recent
figures for trade in electrical equipment are unavailable.

**Comments:** The electricity sector offers opportunities to U.S.
companies that can help to renew Chad\'s old equipment, improve
productivity and expand production to meet rising demand. Opportunities
exist to supply generating equipment, transformers, solar energy cells
and other electrical equipment. After years of government control, the
electricity sector is currently being liberalized. The parastatal
electric company is being privatized and investments are planned to
increase its generating capacity. A plan to transport oil via a pipeline
from an oilfield north of Lake Chad to N'Djamena where it will fuel a
new generating station is currently stalled. Chad may offer excellent
potential for solar power and other alternative energy sources.

Chad\'s energy sector has suffered from years of mismanagement at the
national electrical and Water Company, STEE (Societé Tchadienne d'Eau et
d'Electricite). STEE is a parastatal company owned by the Chadian
government (81.28 percent) and the French Development Agency \-- AFD \--
(18.72 percent). At 230 CFA (40 cents) per kilowatt-hour (kWh) Chad's
electricity rates are among the highest in the world. Approximately 59
percent of the cost stems from fuel imported from Nigeria and Cameroon.
An additional 20 percent of the kWh price structure goes to amortization
costs.

In spite of these high rates, STEE has been unable to collect enough
income to cover its expenses and as a result, it has racked up a vast
amount of debt estimated at four times its operating capital. Many
electricity users do not pay any bills, so other consumers effectively
subsidize their electricity. Production capacity is sufficient to meet
approximately only one-half of N\'Djamena\'s small peak demand of 21 MW
per day during the hot season. At present, STEE only serves 15 percent
of the capital's population, and only 1.5 percent of the population of
the entire country. This electricity density rate is on of the lowest in
the world.

STEE has begun to recover under a privatization plan supported by
multilateral and bilateral donors. In September 2000, Vivendi-Dietsman
(formerly Generale des Eaux) began to implement an agreement to manage
STEE for a two-year period with an option to take a majority share at
the end of this period. Vivendi hopes to return STEE to profitability in
part by reducing fuel costs and raising productivity. Privatization
could open the way for liberalization of the electricity sector,
allowing other foreign firms to compete.

To help STEE recover, there are long-stalled plans for the Sedigui
project to produce and refine high-grade oil from north of Lake Chad for
domestic consumption. A 317 km pipeline has been built to transport the
oil to a generating station outside N\'Djamena; the pipeline, though, is
currently unusable. A refinery is eventually planned to produce diesel
fuel near N'Djamena. The project may eventually produce natural gas to
power electricity generators in N\'Djamena. It is hoped that this
project may lower energy costs, although initial cost savings may be
allocated to reducing STEE's debt. Regardless, each of these expansion
areas will rely heavily on foreign investment and the import of
equipment.

Given Chad's high electricity costs and limited infrastructure, there is
strong potential for solar power and other alternative energy sources.
Several solar energy companies already operate in N'Djamena and
solar-powered pumps are often installed in rural areas. As solar energy
technology becomes more cost-efficient, it may offer a competitive
alternative to Chad's expensive fixed network.

**4) Building Products (BLD), Hardware**

  ------------------------------------- ------------ ---------- ----------
  **Data Table (in millions of USD)**   2001         2002       2003
                                                                (Est.)

  Total Market Size                     71.88        82.67      95.07

  Total Local Production                0            0          0

  Total Exports                         0            0          0

  Total Imports                         66.13        N/A        N/A

  Imports from the U.S.                 N/A          N/A        N/A
  ------------------------------------- ------------ ---------- ----------

The above figures are unofficial estimates. Before the Doba oil project
began, the bulk of this market consisted of cement imported from
Cameroon.

**Comments:** The Doba oil project has increased Chad's demand for
construction materials. The project itself has trained hundreds of
Chadians in construction and basic hardware techniques, further opening
up potential for growth. U.S. companies have supplied modular
construction materials to build oil project campsites for over 4,000
workers; many Chadians worked on this effort and are now looking to use
their skills in other parts of the country.

Trade in hardware and construction supplies, however, can be highly
variable depending on the requirements of specific construction projects
and how these projects are supplied. The government of Chad intends to
use oil revenues to invest significant resources in improving
infrastructure and social services. Many who procure these materials
know and appreciate the high quality of U.S. products. U.S. suppliers
should therefore be well positioned to exploit this growing market.

**5) Electrical Machinery, Computer Equipment and Parts (CPT)**

  ------------------------------------ ----------- ----------- -----------
  **Data Table (in millions of USD)**  2001        2002        2003 (Est.)

  Total Market Size                    15.1        46.84       46.84

  Total Local Production               0           0           0

  Total Exports                        0           0           0

  Total Imports                        10.0        40.74       40.74

  Imports from the U.S.                N/A         27.15       27.15
  ------------------------------------ ----------- ----------- -----------

The above figures are unofficial estimates.

**Comments:** Electrical machinery, including electronics, is one of
Chad\'s biggest import categories with a significant U.S. market share.
The increase in housing construction related to the oil project, is
causing even greater demand for various electrical appliances and
components.

In recent years, N\'Djamena has seen a proliferation of businesses that
offer computer equipment and services. Several private institutions have
recently begun to offer training in management and information
technology. Several government departments, including the customs
department, are beginning to modernize and computerize some of their
services. As a leading producer of information technology, the U.S. is
in a strong position to serve and benefit from this growing market.

**6) Food Processing/ Packaging Equipment and Materials (FPP)**

  ------------------------------------ ----------- ----------- ----------
  **Data Table (in millions of USD)**  2001        2002        2003
                                                               (Est.)

  Total Market Size                    12.06       14.81       17.03

  Total Local Production               0           0           0

  Total Exports                        0           0           0

  Total Imports                        12.06       14.81       17.03

  Imports from the U.S.                1.27        N/A         N/A
  ------------------------------------ ----------- ----------- ----------

The above figures are unofficial estimates. This category combines two
customs categories (paper/packaging materials and plastic materials)
with food processing, a related sector with strong potential for U.S.
investment. Figures above are for paper and packaging materials.

**Comments:** Food processing may offer the best opportunities for Chad
to diversify its economy and encourage agricultural production. There is
potential for processing grains, fruit, oilseeds and animal products.
The most often cited candidate for food processing is mango, produced in
such great abundance during their harvest season that they cannot be
consumed locally. Another possibility is small-scale tomato drying in
the eastern region, near Abéche (AH-bay-chey).

Aside from the widespread milling and processing of grains, there are
currently very few food-processing ventures in Chad. There are several
small bakeries, a cookie factory, and a yogurt maker, but very little
else. Peanuts, sesame, and shea nuts are widely used to produce oil
through laborious traditional methods. CotonTchad has long-operated a
factory that produces oil and soap from cottonseeds, an operation that
has recently been separated from cotton ginning operations and is due to
be privatized. If energy costs can be reduced, these food-processing
opportunities will become more attractive.

Packaging and paper products constitute one of Chad\'s significant
import categories, one that is likely to grow in proportion to other
industrial sectors. Demand for paper and packaging materials will be
boosted if investments are initiated in food processing and other
industrial ventures.

**7) Telecommunications Equipment and Services**

  ------------------------------------ ----------- ----------- ----------
  **Data Table (in millions of USD)**  2001        2002        2003
                                                               (Est.)

  Total Market Size                    10.8        114.5       114.5

  Total Local Production               10.8        77.5        84.5

  Total Exports                        0           0           0

  Total Imports                        N/A         N/A         N/A

  Imports from the U.S.                N/A         N/A         N/A
  ------------------------------------ ----------- ----------- ----------

The above figures are unofficial estimates. These estimates are for
telecommunications services only. Figures for equipment are unavailable,
although it is known that imports were high in 2000, during the
establishment of Chad's two cellular phone service providers.

Comments: Chad's telecommunications market has expanded since two
cellular companies began operating in 2000. This expansion of cellular
service has surpassed all expectations, although there was controversy
over the sale of the second cellular license. This controversy has
complicated the privatization of the parastatal telephone company,
SotelTchad, thus limiting further development of Chad's fixed network.
Opportunities exist to offer additional satellite and Internet services
while expanding cellular and fixed infrastructure.

After commencing operations in late 2000, the two cellular providers had
signed up more than 8,000 subscribers by the end of that year. The
number of subscribers reached 20,000 by the end of 2001, surpassing the
number of fixed telephone lines. The first cellular license was awarded
in 1999 to Mobile Systems International (MSI) through an international
tender supervised by the World Bank. Operating as Celtel, MSI began
building its cellular network in 2000. In 2000, the government sold a
second cellular license to ORASCOM through non-competitive procedures.
When international donors objected to this action, the government
instead awarded ORASCOM a minority stake in SotelTchad's existing
cellular license. ORASCOM used this opening to essentially develop a
second cellular company, Tchad Mobile (using the Libertis brand), with
limited participation from SotelTchad; Libertis/Tchad Mobile has already
reached maximum capacity. SotelTchad also provides Chad's only Internet
services at very high rates.

As cellular service is expanding, liberalization of fixed telephone
services is stalled. The privatization of SotelTchad was originally
planned in collaboration with international donors, but these donors
withdrew support after SotelTchad's joint cellular venture with Orascom
violated structural reform agreements. SotelTchad is unable to make
significant investments in its fixed line network. At the end of 2000,
the Chadian telephone network possessed only 10,260 lines for an average
of 14 lines per 10,000 inhabitants, one of the lowest telephone density
rates in the world.

SotelTchad was formed in 1999, by the merger of the local telephone
service division of ONPT and the international telephone service and
Internet service provider, TIT. In preparation for this merger, the
government bought out the shares of two French firms heading TIT. As an
entirely public company, SotelTchad was expected to be privatized
through an international tender. Though the process has stalled, the
government still affirms its intention of privatizing SotelTchad and is
continuing to seek support from international lenders.

Liberalization and development of the telecommunications sector offers
investment or partnership opportunities for U.S. telecom firms. The
government recognizes that no single operator is likely to finance the
enormous investments needed to develop a modern telecommunications
network in Chad.

**8) Pharmaceuticals and Medical Equipment (DRG, MED)**

  ------------------------------------ ----------- ----------- ----------
  **Data Table (in millions of USD)**  2001        2002        2003
                                                               (Est.)

  Total Market Size                    15.95       20.15       24.00

  Total Local Production               0           0           0

  Total Exports                        0           0           0

  Total Imports                        11.00       20.15       24.00

  Imports from the U.S.                N/A         1.95        N/A
  ------------------------------------ ----------- ----------- ----------

The above figures are unofficial estimates.

**Comments:** As a developing country with serious public health
problems, Chad has consistent demand for pharmaceutical products and
medical equipment. Some of Chad's most prevalent diseases include
malaria, diarrhea diseases, parasites, and respiratory infections.
Anti-malaria, anti-parasitic and antibiotic medicines are among the most
widely used categories of medicine. A wide variety of medical equipment
is also needed to supply hospitals and health centers throughout the
country. Because purchasing power is low, lower cost pharmaceuticals
(such as generics) and medications to treat a broad range of illnesses
sell most readily.

The pharmaceutical market can be divided into two categories: 1) private
pharmacies that supply brand-name products and 2) public pharmacies that
supply generic products. These public pharmacies are generally located
in local hospitals and health centers. One wholesaler, Laborex,
primarily supplies private pharmacies. Laborex is supplied by a central
procurement office in France. Public pharmacies are supplied through a
government distribution center that procures its medicine through
international tenders.

U.S. suppliers may find it difficult to penetrate the private market
without going through Laborex, although several other companies have
begun to import some pharmaceuticals. Drug companies usually promote
their products by recruiting local public health professionals to serve
as representatives for particular products. Generic drug makers may find
it useful to use a Chadian importer as a representative to participate
in international tenders. Suppliers of medical equipment can contact the
Ministry of Public Health to solicit their procurement needs.

2.  **Best Prospects for Agricultural Sectors**

```{=html}
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```
1.  Wheat/ Wheat FLOUR

2.  Cotton

3.  Livestock / Poultry Farming

4.  Fertilizer

5.  Insecticides

**1) Wheat/ Wheat FLOUR**

PS&D Commodity Heading: 0410000, 0440000, and 0422100

  ------------------------------------ ----------- ----------- ----------
  **Data Table**                       2001        2002        2003
                                                               (Est.)

  Total Market Size                    65,000      68,000      73,000

  Total Local Production (in Metric    3,574       4,500       8,000
  Tons)                                                        

  Total Exports                        N/A         N/A         N/A

  Total Imports                        N/A         N/A         N/A

  Imports from the U.S. (in millions   N/A         N/A         N/A
  of USD)                                                      
  ------------------------------------ ----------- ----------- ----------

The above figures are unofficial estimates.

**Comments:** Wheat flour is currently one of the largest U.S. exports
to Chad, largely in the form of food aid donated by the U.S. government.
The volume of this aid is expected to remain high. Though largely
self-sufficient in its production of other grains, Chad only produces
small quantities of wheat, which is insufficient to cover domestic
demands. Barring unforeseeable events, this will remain by far the
biggest U.S. agricultural export to Chad.

**2) Cotton**

+-------------------------------------+---------+----------+----------+
| ######### Data Table                | 2001    | 2002     | 20       |
|                                     |         |          | 03(Est.) |
+-------------------------------------+---------+----------+----------+
| Total Market Size (in millions of   | N/A     | N/A      | N/A      |
| USD)                                |         |          |          |
+-------------------------------------+---------+----------+----------+
| Total Local Production (metric tons | 58,100  | 70,700   | 89,000   |
| of fiber)                           |         |          |          |
+-------------------------------------+---------+----------+----------+
| Total Exports (metric tons of       | 56,022  | 64 ,177  | 85,000   |
| fiber)                              |         |          |          |
+-------------------------------------+---------+----------+----------+
| Total Imports                       | 0       | 0        | 0        |
+-------------------------------------+---------+----------+----------+
| Imports from the U.S.               | 0       | 0        | 0        |
+-------------------------------------+---------+----------+----------+

The above figures are unofficial estimates Market size refers to the
estimated value of Chad's cotton fiber exports.

**Comments:** Cotton is Chad's largest export industry. The sector will
offer important opportunities for investment and trade when and if the
long-planned liberalization of the industry is completed. Cotton
currently provides 30 to 50 percent of Chad\'s export earnings and
involves 300,000 cultivators. It is estimated that 2.5 million Chadians
(28 percent of the population) rely on this sector for their
subsistence. CotonTchad, the parastatal enterprise, has long controlled
the cotton sector with a monopoly on purchasing and processing raw
cotton. CotonTchad is owned by the government (75 percent), the
Développement des Agro-Industries du Sud (17 percent) and several banks.

The Cotton Sector Reform Committee (CTRC) is piloting cotton sector
reforms. Reforms were started years ago, but the government and the
French co-owners continue to prolong an already protracted privatization
process. Under the current program, cotton-ginning operations have been
separated from oil and soap production, and a controller has been
recruited for CotonTchad. The government launched an international
tender in April 2002 to privatize the oil and soap making portion of
CotonTchad, called Direction de l'Huilerie et Savonnerie (DHS). The CTRC
recruited the Tunisian consulting firm Scet--Tunisia to plan the
privatization of CotonTchad's remaining cotton ginning and export
operations. Privatization should open up some opportunities to penetrate
the cotton trade that has long been restricted by French interests.
Investment opportunities for U.S. companies, however, will only be
viable if the privatization process results in higher producer prices.
This, in turn, depends upon increased competition among purchasers.

CotonTchad\'s balance sheet has fluctuated depending on world cotton
prices and other factors. Following a fall in cotton prices during the
1980s, CotonTchad was forced to rely on foreign subsidies until the
devaluation of 1994, internal reforms, and a coincidental rise in cotton
prices brought it back well into the black. In recent years, raw cotton
production has declined from 261 thousand tons in 1997-1998 to 143,000
tons in 2000-2001 (there was a brief increase to 184,000 tons in
1999-2000). In 2000-2001, the 143,000 tons of cotton yielded 58,000 tons
of cotton fiber, a decrease of over 22 percent from the previous year.

**3) Livestock / Poultry Farming / animal by-products**

PS&D Commodity Headings: Cattle 0011000, Sheep 0012100, Meat- beef &
veal 0111000, Meat-lamb & goat 0112000, Bovine hides & skins 2111000,
by-products 4113200

+------------------------------------+-----------+----------+----------+
| ######### Data Table               | 2001      | 2002     | 2003     |
|                                    |           |          | (Est.)   |
+------------------------------------+-----------+----------+----------+
| Total Market Size (thousand head)  | N/A       | #####    | N/A      |
|                                    |           | ###  N/A |          |
+------------------------------------+-----------+----------+----------+
| Total Local Production (million    | 15.6      | 15.9     | 18.4     |
| head)                              |           |          |          |
+------------------------------------+-----------+----------+----------+
| Total Exports (in million USD)     | N/A       | 77.6     | 81.5     |
+------------------------------------+-----------+----------+----------+
| Total Imports (in thousands of     | 0         | 0        | 0        |
| metric tons)                       |           |          |          |
+------------------------------------+-----------+----------+----------+
| Imports from the U.S.              | 0         | 0        | 0        |
+------------------------------------+-----------+----------+----------+

The above figures are unofficial estimates for beef, goats, and sheep.
Livestock are consumed and exported primarily informally, so reliable
statistics are difficult to obtain.

**Comments:** Livestock raising is a major economic activity and
principle source of livelihood for 40 percent of Chad\'s rural
population. Chad earns an estimated 30 to 50 percent of its export
earnings from livestock. It is difficult to estimate the value of cattle
exports. Most cattle exported \"on the hoof\" pass outside the control
of Customs services, and as a result these exports are not officially
counted or taxed. Most of these exports go to neighboring Nigeria, which
will continue to offer a promising market.

The size of Chad's herds is difficult to determine, primarily due to
seasonal migrations. Conservative estimates from CEBVIRHA - UDEAC
(Communauté Economique du Betail, de la Viande et des Ressources
Halieutique) are as follows: 6.3 million head of cattle, 6.6 million
sheep and goats, 1 million camels, 20,000 pigs, 200,000 horses, and
300,000 mules. Other sources estimate much higher numbers. The livestock
sector annual growth rate each year is estimated at 2.4 percent.

Possibilities exist for U.S. investors in processing meat and animal
products, particularly if these products can be exported to regional and
world markets. The meat packing plant in N\'Djamena and another French
firm, Africaviande, have exported frozen beef, primarily to CEMAC member
countries (Cameroon, Central African Republic, Congo (Brazzaville),
Equatorial Guinea, and Gabon. Further opportunities exist in tanning and
in the development of animal by-products for export and for local
consumption.

Poultry farming offers strong-yet-unexplored growth potential. The
capital city of N'Djamena has only minimal poultry farming operations,
and even with very high prices these farms regularly sell out. In
addition to the small domestic market, potential exists to export
poultry to neighboring countries. Due to extremely high temperatures
during most of the year, however, climate-controlled facilities could
greatly enhance growth in this area.

**4) Fertilizer**

  ------------------------------------ ----------- ----------- ----------
  **Data Table (in millions of USD)**  2001        2002        2003
                                                               (Est.)

  Total Market Size                    14.48       16.13       18.2

  Total Local Production               0           0           0

  Total Exports                        0           0           0

  Total Imports                        14.48       11.51       5

  Imports from the U.S.                0           0           0
  ------------------------------------ ----------- ----------- ----------

The above figures are unofficial estimates.

**Comments:** Fertilizer offers U.S. companies the potential to compete
with other suppliers. In past years, fertilizer has accounted for as
high as 5 percent of the value of Chad's total imports. Fertilizer is
imported primarily for use in cotton and sugar production, but some
farmers also divert it to food crops. Fertilizer is currently purchased
and distributed by CotonTchad through international tenders.

**5) Insecticides:**

  ------------------------------------ ----------- ----------- ----------
  **Data Table (in millions of USD)**  2001        2002        2003
                                                               (Est.)

  Total Market Size                    6.08        9.02        12.85

  Total Local Production               0           0           0

  Total Exports                        0           0           0

  Total Imports                        6.08        9.02        7.10

  Imports from the U.S.                0.61        0.61        N/A
  ------------------------------------ ----------- ----------- ----------

The above figures are unofficial estimates

**Comments:** Insecticides are another agricultural input that U.S.
firms have supplied in the past. As Chadians strive to improve
agricultural productivity, they will continue to import insecticides.
Like fertilizer, insecticides for cotton cultivation are procured
through international tenders.

# Chapter 6: Trade Regulations, Customs and Standards

1.  **Trade Barriers**

Traditional barriers to U.S. exports and investment include:

(1) Limited U.S. interest due to Chad\'s small market size.

(2) Lack of information about investment conditions and business
    opportunities in Chad.

(3) Uncertain legal protection and lack of an independent judiciary in
    Chad.

(4) Higher shipping costs and longer transit times between Africa and
    the U.S.

(5) High cost of electricity and power.

(6) Expensive and limited financial services in Chad.

(7) Lack of English language speakers. French language predominates, and
    many potential business partners speak only Chadian or possibly
    Classical Arabic.

(8) Perception that France and Europe dominate the market due to French
    commercial and cultural ties.

**Tariffs:**

Chad\'s tariff structure is based on fiscal and custom duties. The
fiscal duty consists of an 18 percent Value Added Tax (VAT) tax
applicable to all goods except some basic commodities and goods
originating in CEMAC (Communauté Economique et Monetaire de l'Afrique
Centrale) countries. Customs duties vary from 0 to 30 percent (see
below).

2.  **Customs Valuation**

The application of customs regulations between the member nations is
determined by CEMAC's Central Management Committee headed by a
conference of heads of states and ministerial council and run by an
Executive Secretariat.

**Tariff Rates:**

Custom tariffs vary according to the origin and type of the imported
product. No tariffs are assessed for products produced and shipped
within the CEMAC (ex-UDEAC) countries. CEMAC countries include Chad,
Congo (Brazzaville), Cameroon, Gabon, Central African Republic, and
Equatorial Guinea. CEMAC has standardized customs duties across the
region.

There are 4 tariff rate categories applied to products imported from
outside the CEMAC community.

\(1\) Products of Primary Necessity, e.g. flour, rice, etc: 5 percent

\(2\) Primary Materials and Equipment: 10 percent

\(3\) Intermediate Goods, e.g. tools, tires, etc: 20 percent

\(4\) Consumer Goods, e.g. canned foods: 30 percent.

There is a supplementary tax (droit d\'accise sur taxe) of 20 percent on
luxury products, such as televisions, audio visual equipment, air
conditioners, automobile radios, CD laser discs, and washing machines.
Automobiles carry an excise tax of 51 percent.

Duties from outside CEMAC are based upon C.I.F. prices. The importer
must cover shipping insurance for in-land travel between Douala and the
Chadian border. The Commercial Section can provide information on
insurance providers operating in Chad and/or Cameroon.

**Additional Import Taxes:**

Import taxes are comprised of (1) the TVA, a value-added tax, (2) IRPP
(Impots sur le Revenu du Personne Physique) 4 percent and (3) a 2
percent information or statistical tax (taxe d\'information).

3.  **Import License Requirements**

Import licenses are not required. There are no quota regulations for
Chad.

4.  **Export Controls**

Export licenses are generally not required. Authorization for exports is
issued through the Ministry of Commerce, Industry and Artisans.
(Ministère du Commerce, de l\'Industrie et de l\'Artisanat). Contact the
Directeur du Commerce, B.P. 458, Tel: (235) 52-21-53, Fax: (235)
52-27-33 --or the Directeur de l\'Industrie PME/PMI, B.P. 424, Tel:
(235) 52-27-33, Fax: (235) 52-27-33).

A certificate of origin is issued for the exported product by the
Chamber of Commerce and Industry, Agriculture, Mines and Artisans
(CCIAMA) B.P. 458, N\'Djamena, Tel: (235) 52-52-64. The Ministry of
Finance and Economy (Ministère de Finance et de l\'Economie, B.P. 144,
N\'Djamena, Chad, Tel: (235) 52-34-87, provides the export license.

5.  **Import/Export Documentation Requirements**

**Commercial Invoice:** Four commercial invoice copies, preferably in
French (or other languages with the French translation and description
of the goods). All invoices must contain the names of the exporter(s),
consignee(s), the product name(s), the unit and total, and quantity. The
unit and total quantity should be in CIF value and include gross weight,
net weight, and the terms of the sale.

**Certificate of Origin:** Two copies, preferably in French or other
language with the French translation. The certificate of origin must be
issued by an official Chamber of Commerce in the country of the products
origin.

**Packing list:** Packing lists should include the number and quantity
per carton, and be in numeric series. Note that the packing list is not
required. However, if missing, customs clearance will be slowed.

**Bill of lading/airway bill:** Documents should include the name and
address of the consignee/importer of the goods. Identification numbers
on bills of lading, airway bills and invoices must be exact.

**Special Requirements for Pharmaceuticals:** Special import
certification is required for pharmaceuticals. Health and pre-shipment
Inspection regulations are available from the following ministries: (1)
Ministered d'Agriculture, B.P. 441, N'Djamena, Tel: (235) 52-21-48 Fax:
(235) 52-51-19; (2) Ministère de la Sante Publique (health) B.P. 898,
N'Djamena, Tel: (235) 51-48-21. The airport health control office can be
reached at: Tel: (235) 52-20-74.

6.  **Temporary Entry**

The Ministry of Industrial Development and Artisans requires Form D18
(Admission Temporaire) for temporary entry of goods. This is issued for
one year and it can be extended for an additional year.

7.  **Labeling, Marking Requirements**

    For the moment there is no specific requirement concerning \"Made
    In\" markings. Computer hardware and software, televisions,
    high-tech equipment and appliances made in the United States should
    have instruction manuals and guarantees in French and/or Arabic
    since eventual end-users may not be able to read English.

    The regulations do not require any particular language markings on
    imported or local food products. Production and expiration dates are
    controlled. Nevertheless, a small amount of smuggled products
    without expiration dates are in circulation.

8.  **Prohibited Imports**

    There are several products ineligible for import or subject to
    import restrictions. They include (1) arms and munitions; (2)
    pornography; (3) narcotics; and (4) illicit drugs and explosives.
    Live animals require all vaccinations and must be accompanied by an
    international or national vaccination card.

9.  **Standards**

The metric system is used for weights and measures. Norms usually follow
French/European Standards, ISO 9000, and SGS. Inspection Certificates
are not required.

10. **Free Trade Zones / Warehouses**

Chad operates a transit warehouse facility in Douala for goods being
shipped to Chad. Warehouse facilities are available in Douala and
N\'Djamena. Bonded warehousing was abolished in Chadian territory on
January 1, 1998. The port of Douala collects demurrage after 11 days.

11. **Special Import Provisions**

Special import certification is required for pharmaceuticals. Health and
pre-Shipment Inspection regulations are available from the following
ministries: (1) Ministère de l'Agriculture, B.P. 441, N'Djamena, Tel:
(235) 52-21-48 Fax: (235) 52-51-19, and (2) Ministère de la Sante
Publique (health) B.P. 898, N'Djamena, Tel: (235) 51-48-21. . The
airport health control office can be reached at: Tel: (235) 52-20-74.

12. **Membership in Free Trade Arrangements**

Chad is a member of the Central African Monetary and Economic Community
(Communauté Economique et Monetaire de l\'Afrique Centrale - CEMAC,
which was formerly Union Douaniere et Economique de l\'Afrique
Centrale - UDEAC) See Chapter 6, Section 1. Chad is a member of the
World Trade Organization (WTO).

13. **Customs Contact Information**

Ministère des Finances et l'Economie

Direction de la Douane

Avenue Felix Eboué, N'Djamena, Chad

Tel: (235) 51-54-94

N\'Djamena Airport Customs

Tel: (235) 52-56-14, (235) 52-35-19

14. **Warranty and Non-Warranty Repairs**

Duties and taxes are charged on replacement parts as well as for goods
brought into the country temporarily for repair purposes and
re-exported.

# Chapter 7: 2003 Investment Climate statement

1.  **Openness to Foreign Investment**

The government of Chad actively seeks foreign direct investment and
welcomes U.S. companies interested in investment. Chad has no limits on
foreign ownership and no discriminatory rules to deter foreign
investors. As a member of CEMAC (the Central African Economic and
Monetary Community) and a signatory to OHADA (the Organization for the
Harmonization of African Business Law), Chad is participating in
regional efforts to standardize tax policies and commercial law. The
government restricts investment in the cotton, electricity, and
telecommunications sectors in order to protect parastatal enterprises.
These sectors, however, are due to be liberalized over the next few
years, although efforts to begin the privatization processes have been
uneven. Other parastatals have either already been or are expected to be
privatized. The level of U.S. investment in Chad is rising dramatically
as a consortium led by two U.S. companies, ExxonMobil and Chevron, is
investing USD 3.7 billion to develop oil resources in southern Chad.

The main, and significant, obstacles to investment are not legal
impediments but the characteristics of Chad\'s commercial climate and,
in particular, Chad\'s limited market potential. Additional constraints
include: limited infrastructure, chronic energy shortages, high energy
costs, a scarcity of skilled labor, a high tax burden, and corruption.
The government of Chad has made gradual progress in reducing some of
these impediments. U.S. investors have also in the past been discouraged
by the predominance of French commercial interests, but Chad's business
community is increasingly trying to diversify commercial contacts to
include U.S. partners.

**Laws affecting direct foreign investment**: A long-debated Investment
Charter is expected to bring Chad\'s Investment Code into closer
compliance with regional (CEMAC) and international (WTO) standards. As
of July 2003, the Charter had been drafted and reviewed by a committee
of experts, but still required the approval of the Minister of Commerce
and the National Assembly. Given local practice, the Charter is not
likely to be ratified before the end of 2003. The draft is intended to
provide a clear legal framework for investments and, if approved and
implemented as currently written, could promote a favorable investment
climate with no discriminatory provisions.

Export taxes have been largely eliminated, a value-added tax (TVA) has
been adopted throughout the CEMAC region, and goods are supposed to
circulate duty-free between all CEMAC members. In practice, however,
illegal taxes continue to impede the free flow of goods. While the new
Investment Charter is expected to restore some incentives to meet
regional standards, other clauses of Chad's investment code remain
suspended under Chad\'s previous IMF Structural Adjustment Program
(1995-1999) because they conflict with fiscal management objectives, for
example by allowing too many tax exemptions.

There are no explicit screening mechanisms to discriminate against
foreign investors, but companies seeking to invest and operate in Chad
must satisfy several bureaucratic requirements, including a review and
approval by the Ministry of Commerce. While these procedures can be
slow, approvals are routinely granted without discrimination against
foreign firms. The draft Investment Charter includes provisions to speed
up the approval process by establishing a 15-day time limit for the
processing of applications.

Foreign firms are welcome to participate in international tenders for
the privatization of parastatal enterprises. Any tenders are generally
announced in local and international newspapers, and are shared
informally through word of mouth in the government and business
communities. The overall privatization process, which includes several
industries, is being implemented in close collaboration with the IMF and
the World Bank, which monitor processes to assure transparency.
Nevertheless, potential still exists for manipulation of the bidding
process. The government has been criticized for a lack of transparency
and use of non-competitive procedures in several well-publicized cases
including the sale of a second cellular license to Libertis/ORASCOM, an
Egyptian company, in 2000. This second license came after the government
of Chad had already granted an exclusive cellular license to Celtel
earlier that year.

2.  **Conversion and Transfer Policies**

There are no restrictions on transfers of funds into Chad, but any
transfers out of Chad exceeding 500,000 CFA (approximately USD 900) must
be approved by the Ministry of Finance. These approvals are usually
routine, but the Ministry has occasionally restricted capital flows for
temporary periods. Businesses can obtain advance approvals for regular
money transfers. Chad is a member of the Central African CFA (Communauté
Financière Africaine) zone, and CEMAC guarantees the convertibility of
CFA Francs into Euros at a fixed rate. Since January 2002, the exchange
rate has been 655.99 CFA per Euro.

For the U.S. dollar, the exchange rate in 2002 was approximately 670 CFA
per dollar. In mid-2003, however, the rate is fluctuating between 560
and 570. This change in the exchange rate is due to the performance of
the dollar against the Euro, to which the CFA rate is fixed.

3.  **Expropriation and Compensation**

There has been no known government expropriation of foreign-owned
private property in recent years. During the period of civil unrest
(1966-1975) some land was expropriated under the Public Use Clause
(Cause d'Utilisation Publique), but there are no indications that such
actions will be taken again. The investment code states that property
can be confiscated after five years if it is not used or developed, but
this clause is rarely if ever applied. In rural areas, powerful
individuals sometimes force locals to sell their land and, in rare
cases, take the land illegally.

4.  **Dispute Settlement**

In theory, Chad has a legal framework and court system capable of
handling investment disputes, but this system inspires little confidence
and it is rarely used. There is a widespread perception that the courts
should be avoided at all costs, so most disputes are settled privately.
Some businesspeople say that recent efforts to improve the judiciary
have resulted in fairer hearings for business disputes. Monetary
judgments are usually awarded in local currency, but they can be awarded
in dollars when the dispute concerns a transaction initially made in
dollars.

Chad\'s legal system is based on a mixture of the French civil law
system and Chadian traditional law. As an OHADA signatory, Chad is
subject to several uniform acts covering securities, establishment of
commercial companies, general commercial law, recovery procedures,
arbitration procedures and bankruptcy procedures. The OHADA acts are
generally consistent with French commercial law, although there are some
differences. These acts have improved the clarity and consistency of
commercial law in the 16 signatory countries.

Chad has begun to establish commercial tribunals to share information on
Chadian law and oversee the resolution of business disputes. This system
is still developing and is not yet relied upon by the local or foreign
business community. CEMAC has established a regional court based in
N'Djamena with authority to hear commercial disputes. This court began
functioning in 2001 and is not yet widely used. OHADA has also
established a regional court in Abidjan, Ivory Coast, designed to
interpret the OHADA Acts and serve as a regional appeals court.

Chad\'s judiciary is easily influenced by the executive branch.
Magistrates are appointed by presidential decree with no legislative
oversight, hence the careers of magistrates, judges, clerks, and other
judicial agents depend on the Presidency and the Ministry of Justice.
Despite some clauses of the constitution, which guarantee the
independence of the judiciary, some observers believe it is more
accurate to say that the judiciary has a certain authority but not
independent judicial power.

Contracts and investment agreements can stipulate arbitration procedures
and jurisdictions for the settlement of disputes. If both parties are in
agreement and the provisions are not contrary to public order, Chadian
courts will respect the jurisdiction of U.S. or foreign courts. In the
absence of such specification, the accepted principle is that
jurisdiction belongs in the country where the agreement was drafted. The
same principles apply to disputes between companies and the Chadian
government. The government will accept international arbitration if it
is stipulated in advance.

Judicial cooperation exists between Chad and certain nations. On
December 7, 1970, Chad signed the Tananarive Convention with eleven
other former French colonies: Benin, Burkina Faso, Cameroon, Central
African Republic, Congo/Brazzaville, Gabon, Ivory Coast, Madagascar,
Mauritania, Niger, and Senegal. This agreement covers areas such as the
discharge of judicial decisions as well as the forwarding and the
serving of legal documents. Chad has since reached similar agreements
with France, Nigeria, and Sudan, all based on the principles of the
Tananarive Convention. Chad appears to treat legal commercial matters
with other countries on a case-by-case basis. Chad is a member of the
International Center for the Settlement of Investment Disputes (ICSID),
also known as the Washington Convention.

In the past, bankruptcy proceedings essentially followed French
commercial laws as promulgated prior to November 1958. Beginning in
January 1998, the OHADA Acts established clearer procedures to address
bankruptcies. The OHADA Acts spell out rights for approved creditors in
various categories (i.e., the treasury, wage earners, etc.).

5.  **Performance Requirements and Incentives**

Investment incentives can be negotiated, but the government\'s
flexibility is limited by regional (CEMAC) agreements and by the
requirements of Chad's IMF Structural Adjustment Program. Nevertheless,
the government may offer temporary tax exemptions and other incentives
for some projects, such as low license fees and rent. Incentives tend to
increase with the size of investment and the likely job creation.
Benefits such as tax holidays can last up to five or ten years. Plans
have also been proposed to establish a credit guarantee fund for
investment projects. The draft Investment Charter defines these and
other kinds of incentives. Investors may address inquiries to the
Ministry of Commerce in order to learn about incentives for specific
projects. A special "Tchad Oil Transportation Company" (TOTCO) tax
regime has also been established, offering tax exemptions to contractors
and subcontractors for the Doba oil project. Special tax exemptions are
sometimes offered for public procurement contracts.

There are generally no performance requirements imposed on foreign
investors. Foreign firms are officially required to employ local workers
for 98 percent of their staff, although in practice this law has not
been applied due to the scarcity of skilled labor. Firms can formally
apply for permission from the Labor Promotion Office (ONAPE) to employ a
greater percentage of expatriates; they must demonstrate that skilled
local workers are not available. Fees for renewals of these permits can
sometimes be higher than the initial work permit fees. Foreign firms are
able to participate in research and development programs, but the
Chadian government lacks funds for such programs. As a result, foreign
donors fund most research programs.

There are no known discriminatory requirements for visas, residence
permits, or work permits which would inhibit foreign investors. As a
member of CEMAC, Chad is trying to streamline and simplify its customs
system in accordance with regional customs standards.

6.  **Right to Private Ownership and Establishment**

Chadian law guarantees the rights of foreign and domestic entities to
establish and own business enterprises and to engage in all remunerative
activities. The government effectively restricts both foreign and
domestic investment in the energy, telecommunications and cotton sectors
in order to maintain the monopolies of its remaining parastatal
enterprises. These enterprises are in the process of being privatized
and foreign participation in upcoming privatization tenders is
encouraged. Once the privatization processes are completed, each sector
should be open to all competitors, foreign and domestic.

7.  **Protection of Property Rights**

Property rights, including intellectual property rights, are protected
by the Chadian Civil Code. The OHADA Acts that came into effect on
January 1, 1998, also helped to establish a more clear legal framework
for property rights consistent with French commercial law. For example,
mortgages were previously enforced without a clear legal framework;
OHADA laws now fill this role. The office of \"Direction de Domaine et
Enregistrement\" in the Ministry of Finance is responsible for recording
property deeds and mortgages. In practice, this office only covers urban
areas, while rural property titles are managed by traditional leaders.
The Courts have frequently encountered cases of multiple deeds to the
same property, indicating that serious problems exist with the title
registration system. In such cases, the earliest title has precedence.
It is worth noting that fraud is common in the area of property
transactions, so investors should exercise caution before commencing
such transactions.

Chad is a party to the 1958 Paris Convention and the 1977 Bangui
Agreement, which group together 12 other Francophone African nations in
the African Intellectual Property Rights Organization (OAPI). Chad
adheres to OAPI rules within the abilities of its limited administrative
capacity. The Ministry of Trade and Industry has established an office
to register copyrights and a branch office of OAPI to process patent
applications, which are valid in all OAPI states. In August 2000,
Chad\'s National Assembly ratified a law governing intellectual property
rights to bring Chad into compliance with the WTO\'s TRIPS agreement.
This law specifies protections for software, literary works, sound
recordings, and industrial patents.

Although prohibited, counterfeit watches, sports clothing, footwear,
jeans, audio materials, cosmetics, perfumes, and other goods are readily
available on the Chadian market. These products are not produced locally
but are imported, often informally, from Asia and neighboring countries.
Chad has a limited capacity to protect intellectual property rights.

8.  **Transparency of the Regulatory System**

The current investment code does not impose any discriminatory
provisions that discourage foreign investment. The business registration
process is usually routine, but red tape can be a problem. There are
approximately 15 steps required to open a business in Chad, involving
visits to several agencies and ministries. While government policies
themselves do not hinder approval, bureaucratic procedures are often
cumbersome or slow. Clear rules exist on paper but they are not always
followed. A heavy tax burden on formal sector businesses discourages
investment and puts informal sector competitors at an advantage.
Restrictive labor laws also discourage investment.

The Chadian government is working with the World Bank and other
multilateral institutions to foster a more transparent and competitive
system. Efforts are being made to simplify tax laws and streamline
government procedures. The World Bank is currently helping to
computerize and generally modernize Chad's customs service. This
includes the establishment of an up-to-date statistics database.

9.  **Efficiency of Capital Markets and Portfolio Investment**

Chad\'s financial system is generally sound and unhindered by
restrictive regulation, but it is quite limited in size and in the
variety of services available. There is no capital or money market in
Chad, and no sophisticated financial products are available. A limited
number of financial instruments are available to the private sector
including letters of credit, short- and medium-term loans, foreign
exchange operations and some long-term savings instruments. Total assets
in Chad\'s banking system are estimated at 72.4 billion CFA
(approximately USD 108 million). The percentage of these assets that are
non-performing is unknown. The International Finance Corporation is
prepared to infuse additional funds through existing banks if demand
develops.

The banking sector has improved in recent years after Chad's banks
underwent internal reforms in 1990 to improve lending practices and
reduce the volume of bad debt. The sector was further aided by the
privatization of the three largest banks: BIAT, SGTB (formerly BTCD) and
CBT (formerly BDT). Credit is available from commercial banks on market
terms, which are expensive (usually 16 to 25 percent for short-term
loans). Medium-term loans are difficult to obtain, as lending criteria
are rigid. Many large businesses maintain accounts with foreign banks.
In addition, the pending oil revenues could have a large impact on the
banking system in the coming years.

Regulations and financial policies generally do not impede competition
in the financial sector. Legal, regulatory and accounting systems appear
transparent and consistent with international norms. Several
internationally known accounting firms have established themselves in
Chad. Chad began using the new OHADA accounting system in early 2002,
bringing its standards into harmony with accounting systems throughout
the region. The banking sector is regulated by COBAC (Commission
Bancaire de l\'Afrique Centrale), a regional banking agency. There is no
effective regulatory system established to encourage and facilitate
portfolio investments. CEMAC countries have effectively taken steps to
establish a small regional stock exchange in Libreville, Gabon. However,
there is no projection on when this exchange may begin operations.
Neighboring Cameroon's new stock exchange is expected to commence
trading by the end of 2003.

In some industries, there appear to be \"cross-shareholding\" and
\"stable shareholder\" arrangements used by private French firms and
agencies to restrict foreign investment and acquisition. Through
privileged positions and dealing from behind the scenes, these entities
can erect protection schemes to restrict competition in key industries.
These practices are facilitated by the fact that there is no stock
market for trading shares. The best known cases involve French
participation in several parastatals: SONASUT/CST (sugar), STEE
(utilities), and CotonTchad (cotton). The French Development Agency
(AFD) has maintained interests in recently privatized enterprises
through its investment partner, PROPARCO. Examples include the Societé
Générale Tchadienne de Banque (SGTB, formerly BTCD) and STEE
(utilities), in which AFD currently holds an 18 percent stake.

10. **Political Violence**

In recent years, Chad has experienced very few incidents of political
violence with any direct effects on commercial activities. Student
demonstrations and strikes periodically take place, but they are usually
directed against the government and have little effect on commercial
affairs. Agricultural production and particularly the cotton sector have
occasionally been affected by political violence as rebels and
government troops have prevented farmers from working their fields in
some regions.

There is a withering rebellion in the far northern region of Chad, but
it is quite far from any major commercial centers and it has had little
direct impact on any commercial activities. Chad currently enjoys good
relations with most of its neighbors.

11. **Corruption**

Corruption is a persistent and widespread problem in Chad, but it is
difficult to detect or verify. As in other developing countries, the low
salaries of most civil servants and judicial employees, and a consequent
tolerance for bribery, have contributed to corruption. Some U.S. firms
have cited corruption as a deterrent to foreign investment, although it
is probably less important than other constraints.

Corruption exists in all levels of government. It may be most pervasive
in the customs and tax enforcement services as well as the judiciary and
the government procurement office. Judicial authorities are widely
assumed to be subject to influence and legal clerks often obstruct
procedures to elicit bribes. Government procurement is often financed by
multilateral organizations and other donors who stipulate conditions to
ensure transparency of the procurement process, but there remains
potential for manipulation of the process. In some cases, tax and
customs authorities may facilitate tax evasion only to return later to
pursue the infractions they facilitated.

Chad is not a signatory of the OECD anti-bribery convention, but a
February 2000 anti-corruption law stipulates penalties for corruption.
The perception remains, however, that most corruption goes unpunished
even when it is exposed. Bribery, for example, is included in the law as
a crime, but there is no known case of anyone having been prosecuted for
bribery since its passage. In addition, bribery is far more accepted
than embezzlement, and is more difficult to detect and prosecute.

12. **Bilateral Investment Agreements**

The U.S. has neither an investment treaty nor a tax code treaty with
Chad. Chad has signed bilateral investment treaties with approximately a
dozen other countries, most of them in Africa. The government does not
share the list of countries or details of the treaties, but the Ministry
of Commerce indicates that the treaties establish general mechanisms for
governments to facilitate dispute resolution. Chad is reportedly
continuing to negotiate regional and bilateral agreements with several
additional African countries.

Due to the lack of a treaty on double taxation, some U.S. firms have
complained about the excessive tax burden they face on some projects,
particularly short-term consulting contracts that do not justify the
establishment of a local office.

13. **OPIC and Other Investment Insurance Programs**

OPIC issued political risk investment insurance to Pride-Forasol, which
is providing oil field drilling services for the Doba oil project. The
overall oil project has dramatically increased the level of U.S.
investment in Chad and it may increase the potential for OPIC to support
projects in other sectors. The U.S. Export-Import Bank has guaranteed
over USD 300 million in U.S. exports for the Doba project.

Chad recently joined the Multilateral Investment Guarantee Agency
(MIGA). The draft investment charter includes provisions to establish an
Investment Guarantee Fund. The French investment guarantee agency,
COFACE, has also guaranteed a number of investments in Chad.

14. **Labor**

Chad has a shortage of skilled labor in most if not all categories, but
there is an increasing pool of university graduates able to fulfill many
entry-level management and administrative functions. As structural
adjustment programs have effectively frozen most government recruitment,
educated workers have increasingly turned to the private sector in
search of employment. These skilled workers are nevertheless a very
small percentage of the total labor pool. About 80 percent of the labor
force is engaged in subsistence activities such as fishing, farming and
herding. Unskilled and day laborers are readily available. Low wage
levels reduce the incentive for investments in labor-saving technology.
Very few workers speak any English, although a small but increasing
number of university graduates and business professionals have some
English skills. Acceptable translators and interpreters are available.

Chadian labor law derives from French law and tends to be far more
protective of workers\' rights than U.S. law. Labor courts are also
quite sympathetic to workers, so it is important for companies to follow
rigorously the legal requirements for hiring and especially for firing
of workers. Labor unions exist and they operate independently from the
government. The main labor federation is the \"Union des Syndicats
Tchadiens\" (UST), to which most individual unions belong. Most small
Chadian businesses operate in the informal economy where labor laws are
widely ignored.

15. **Foreign Trade Zones / free ports**

There is a small duty-free zone at the N'Djamena airport. No other
duty-free areas exist.

16. **foreign direct investment statistics / Major Foreign Investors**

Oil activity is dramatically increasing the level of foreign direct
investment in Chad, in particular U.S. investment. In the past, foreign
direct investment in Chad has been quite limited, with French firms
dominating most sectors. Statistics by country of origin and sector of
destination are not available, but the Bank of Central African States
(BEAC) estimates that Chad's total private sector investment varied from
73 billion to 103 billion CFA (from USD 100 to 135 million) per year
between 1996 and 1999. In 2001, the Doba oil project boosted private
sector investment by over 100 percent, from 130 billion to 280 billion
FCFA (from USD 170 to 365 million) per year. Private sector investment
in 2002 was estimated by the Central Bank at approximately 725 billion
CFA (USD one billion), or 54 percent of GDP.

With the investment-heavy construction phase ending, the Central Bank
projects that the contribution of private sector investment could drop
to as low as 16.9 percent of GDP in 2003, although investment in related
and parallel sectors could dramatically affect this figure. This,
however, is still well above historical figures. As recently as 1999,
private sector investment was only 9.8 percent of GDP, and the 2000
World Investment Report estimates that FDI inflows varied between USD 13
and 18 million between 1995 and 1999. In addition to direct investments,
the project is expected to encourage investment in related and parallel
sectors.

French firms have historically been the biggest foreign investors in
Chad, with interests in cotton, sugar, electricity, water, construction,
transportation, and other small industries. French investors include
Développement des Agro-Industries du Sud, shareholder of a minority
stake in CotonTchad and SOMDIAA (the proprietors of the Chadian sugar
company CST, formerly SONASUT). The Bollore group has invested in Chad's
two largest transportation companies, SDV and STAT. CFAO owns the two
main automobile distributors, Tchami Toyota and SOCOA. Maestria holds a
minority stake in Tchadipeint, a paint manufacturer. Bouygues and
Cegelex have partnered with U.S.-based Halliburton to provide
construction services for the Doba oil project. Several other French
companies have invested in the construction and banking sectors.

Other sources of foreign investment include the United Kingdom, South
Korea, Holland, Egypt, Sudan, Libya, and Taiwan. A Swiss company,
Cliveden, is investing in oil exploration with a Canadian partner,
EnCana. A South Korean company, AFKO, has invested in a gold mining
venture in southern Chad. A Dutch company, MSI, and an Egyptian company,
ORASCOM, have invested in cellular telephone services. Libyan companies
have increased their investments in Chad over the past several years,
particularly in hotels and real estate.

# Chapter 8: Trade and Project Financing

1.  **The Banking System**

Chad is a member of the CFA (Communauté Financiere Africaine) zone
(\"franc zone\"), and the Central African Monetary Union (CEMAC), which
guarantees the convertibility of CFA into Euro at a fixed rate. Exchange
rates with the USD therefore vary according to the strength of the
dollar versus the Euro. The average exchange rate in 2002 was about 670
FCFA per USD, although by mid-2003 the rate had dropped to approximately
570.

Chad\'s banking system is believed to be sound, but it is limited in
size and in the services available. A limited number of financial
instruments are available to the private sector including letters of
credit, short and medium term loans, foreign exchange operations and
some long term savings instruments. Total assets in Chad\'s banking
system are estimated at 70 billion CFA (approximately USD 120 million).
The percentage of these assets that are non-performing is unknown. The
International Finance Corporation is injecting more capital through
existing banks if sufficient demand develops. The banking sector is
regulated by COBAC (Commission de Banque de l\'Afrique Centrale) a
regional banking agency. Chad has no investment bank.

The banking sector has improved in recent years as the three largest
banks, BIAT, SGTB (formerly BTCD) and CBT (formerly BDT) were privatized
and all major banks have undergone internal reforms to reduce the volume
of bad debt and improve lending practices. Credit is available from
commercial banks on market terms, which are expensive, usually 16 to 25
percent for short-term loans. Medium term loans are difficult to obtain,
as lending criteria are rigid. Credit is usually only granted to
preferred, long established clients.

A financial market does not exist in Chad, but one is planned among
CEMAC members (Cameroon, Central African Republic, Chad,
Congo/Brazzaville, Gabon and Equatorial Guinea).

2.  **Foreign Exchange Controls Affecting Trade**

    Unless prior authorization is obtained from the Ministry of Finance
    and Economy, movement of more than 500,000 FCFA (approximately
    USD 900) is not permitted. This authorization is usually routine,
    but transfers are occasionally restricted for temporary periods. The
    free exchange of the CFA and foreign currency is guaranteed to
    certain financial/commercial operators who have advance
    authorization. Chadians and foreigners can execute transactions
    through the major banks, the Central Bank and the postal
    administration.

3.  **General Availability of Financing**

    Private financing is difficult to obtain in Chad and the terms are
    quite expensive, ranging from 16 to 25 percent for short-term loans.
    Longer-term loans and other forms of credit are generally available
    for only long-term and well-established clients. Foreign investors
    generally rely on foreign financing, although the difficulty in
    obtaining local financing is another potential obstacle to economic
    growth.

4.  **Availability of GSM Credit Guarantees**

    The GSM-102 Credit Guarantee Program can be used to promote the
    export of U.S. agricultural products, but no Chadian banks are
    approved for this program. Chadian importers must rely on approved
    banks in Benin, Cote d\'Ivoire, Gabon, Ghana, or Senegal.

5.  **Financing Exports and Method of Payment**

    Some traditional trade finance instruments such as letters of
    credit, collections and funds transfers are available to exporters,
    but associated fees are high. Financing can be obtained from the
    commercial banks for short- and medium-term loans to the private
    sector. Long-term public sector financing is arranged through
    multilateral lending institutions, i.e., the World Bank, African
    Development Bank (BAD), European Founds of Development (FED), and
    Islamic Development Bank, as well as bilateral agreements with
    European, Middle Eastern and Asian nations.

6.  **Types of Available Export Financing and Insurance**

    The Export-Import Bank of the United States (ExIm Bank) offers
    short-term credit guarantees to support the exports of U.S. raw
    materials, spare parts, consumer goods and commodities to public
    sector buyers in Chad. The ExIm Bank has approved guarantees for USD
    300 million for U.S. exports related to the Doba Basin oil project.
    Chad is currently \"On Cover\" only for short-term public sector
    transactions. For the private sector, the ExIm Bank can insure
    short-term irrevocable letters of credit issued by credit-worthy
    banks. The ExIm website is www.exim.gov.

    The Overseas Private Investment Corporation (OPIC), a U.S.
    government agency based in Washington, offers investment insurance
    and financing for private sector projects. OPIC insurance can cover
    political risk, currency inconvertibility, and expropriation. OPIC
    is presently supporting one project in Chad, related to the Doba oil
    project. The OPIC website is [www.opic.gov)]()

    The U.S. Trade and Development Agency can finance feasibility
    studies that are likely to increase U.S. exports. Multilateral
    lending institutions (i.e. World Bank, African Development Bank) and
    bilateral donors often finance government procurement of some
    merchandise. The TDA website is www.tda.gov

    Some development projects are financed by international financial
    institutions such as the World Bank, the African Development Bank
    (AFDB/BAD), the Central African Development Bank (Banque de
    Developpement des Etats de l\'Afrique Centrale - BDEAC), the
    European Investment Bank (Banque Europeen d\'Investissement), the
    Islamic Development Bank, the European Development Fund (Fond
    Europeen pour le Developpement - FED), and the Arabic Fund for
    Economy and Social Development.

    U.S. and Foreign Commercial Service district offices and Regional
    Export Assistance Centers located through out the U.S. can assist
    U.S. exporters in finding the most appropriate financing option.
    Consult [www.usatrade.gov]() for more information.

    Other creative financing techniques are available. Counter trade
    (barter) requires contractually-linked reciprocal import/export
    transactions between two enterprises and countries. Forfeit
    financing, finance leasing and factoring techniques rely on
    discounting of short and medium term trade debts. Escrow accounts
    provide a system to insulate collateral and disburse to lenders
    revenues generated by the project being financed.

7.  **Chadian Banks with Correspondent U.S. Banking Arrangements:**

    Societé Generale de Banque Tchadienne -SGTB (formerly BTCD)

    Correspondents: Citibank, New York, Paris and Abidjan 

    Banque Internationale de l'Afrique au Tchad (BIAT, owned by the
    Groupe Belgolaise)

    Correspondents: Bank of New York; Citibank, Paris and New York

    Financial Bank Tchad

    Correspondents: American Express Bank, Paris and New York; Citibank,
    New York

    Commercial Bank Tchad (CBT) former Banque de Developpement du Tchad
    (BDT)

    Correspondents: Citibank, New York

    **Chapter 9: Business Travel**

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1.  **Business Customs**

    French and Chadian Arabic are the official languages of Chad.
    English speakers in the government and business communities are
    rare. Business correspondence, brochures and advertising materials
    should be prepared in French. Translation of materials into Chadian
    Arabic is difficult and usually not necessary. Business calls are
    generally conducted in French, but for some sectors an interpreter
    who speaks Chadian Arabic is an advantage.

    In general, business customs in Chad are similar to those in the
    United States and Europe, although less formal. It is customary to
    shake hands with virtually everyone one meets, regardless of the
    setting. Some Muslims prefer not to shake hands with women, but
    there is no reluctance to deal with businesswomen. Meetings usually
    begin with polite inquiries about personal and family health before
    getting down to business. In general, visitors should permit the
    person receiving them to turn the subject to business. Chadians
    usually wear business suits or traditional dress. Lightweight suits
    are appropriate throughout the year.

2.  **Travel Advisories**

    For up-to-date travel advisories, may consult the State Department
    web page at travel.state.gov/travel_warnings.html

3.  **Entry Requirements**

    **Health:** A valid U.S. passport and international health
    certificate indicating recent yellow fever and cholera immunizations
    are required for entry into Chad. Inoculations against typhoid,
    tetanus, diphtheria, meningitis and hepatitis are also recommended.
    Malaria prophylaxis is strongly recommended.

    **Entry Visas:** A visa is required for U.S. citizens. The visa must
    be obtained prior to departure as it is virtually impossible to
    obtain one at the airport upon arrival. U.S. visitors must register
    with the National Police (Surete Nationale) at \"Rue du Colonel
    Moll\" within 72 hours after arrival. Travelers are advised to carry
    their passports at all times, since authorities often request
    identification. Long-term visas (Visa de Long Sejour) are also
    available, valid for up to three years. Entry visas can be obtain
    through Chadian embassies in Cameroon, Central African Republic,
    Sudan, Libya, Nigeria, Niger, Benin, Algeria, Germany, Egypt,
    Ethiopia, Lebanon, France, Benelux and the EU, Saudi Arabia, Taiwan,
    Congo, Democratic Republic of the Congo, Ivory Coast, Italy, Russia,
    and the United States. In countries where there is no Chadian
    embassy, French embassies can issue Chadian entry visas. U.S.
    travelers can obtain tourist, business and diplomatic visas from the
    Embassy of the Republic of Chad, 2002 R Street, NW, Washington,
    D.C. 20009. Telephone: (202) 462-4009; fax: (202) 265-1937.

    **Residence Permits:** A Residence Permit (Carte de Sejour) can be
    obtained from the Visa Office at the National Police (Surete
    Nationale) on rue du Colonel Moll in N'Djamena. The following
    documents are required to apply for a Residence Permit and long-term
    Visa:

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a.  A letter (in French) requesting the deliverance of a visa and
    residence permit addressed to the "Directeur de la Surete
    Nationale."

b.  A valid passport with a valid visa.

c.  Completed application forms for the permit and visa. These forms can
    also be obtained in other cities in Chad from the respective Surete
    Nationale offices.

d.  A copy of a work contract or a letter of recommendation from the
    employer.

e.  525,000 FCFA in fees: 500,000 for a residence permit (carte de
    sejour) and 25,000 for the visa.

    **Work Permits:** The regulations for individuals seeking long-term
    employment are still somewhat rigorous and bureaucratic. The country
    has a strong \"Chadians first\" policy. This is particularly true in
    the petroleum era, when popular resentment over foreign nationals
    working on the Doba oil project is strong. The National Office
    regulates employment of foreigners for the Promotion of Employment
    (Office National pour la Promotion de l\'Emploi \-- ONAPE) in the
    Civil Service Ministry. Any contract between a foreign employee and
    an employer must be approved in advance by the ONAPE and the
    Ministry of Interior.

    The application for a work permit should include a resume or
    curriculum vitae along with a copy of the applicant\'s passport and
    entry visa. The applicant must also present previous work permits
    (if any) and proof of professional work experience. Copies of all
    diplomas and certificates of professional studies are also required.

    **Other Entry Requirements - Personal/Professional Goods**: Articles
    such as clothing and other personal effects along with professional
    tools and devices, musical instruments, etc., may be allowed duty
    free entry for long term residents. Foreigners wishing to import
    personal vehicles will usually face two alternatives: (1) Those
    intending to stay for a determined length of time can obtain from
    the customs office Form D18 which allows for temporary admission of
    a vehicle for up to two years. The vehicle will receive temporary
    transit tags along with an assigned validity date; the vehicle must
    then be re-exported at the end of the stipulated period. (2) Those
    intending to stay in Chad for a longer period must present their
    vehicles to Customs. Customs will determine the duty based on the
    invoice value or, in the absence of an invoice, the estimated value
    calculated by Customs office. Customs duties are based on the
    following duty schedule: 30 percent Import Tariff; VAT Tax 18
    percent, 2 percent for a license fee (\"redevance\") and 4 percent
    Income Tax. Upon payment of the duties, the vehicle is inspected by
    the Bureau of Transportation and receives a tag number. Personal
    computers and laptops face the same import requirements as vehicles.

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4.  **Holidays**

    January 1 New Year Day

    April Easter Monday

    February Aid-Al Adha (Tabaski) (M)

    May 1 Labor Day

    May 25 African Liberation Day

    June Maouloud Al Nebi (M)

    August 11 Chadian Independence Day

    November 1 All Saints' Day

    November 28 Proclamation of Chad Republic

    December 1 Freedom and Democracy Day

    December Aid-Al-Fitr (end of Ramadan) (M)

    December 25 Christmas Day

    Note: (M) - Muslim holidays are based on the lunar calendar and the
    exact dates may vary in different countries. Travelers may want to
    confirm the dates of these holidays before traveling.

    **Working Week:** For government offices, Monday through Thursday
    from 7:30 AM -- 3:30 PM, with a 30-minute break, and Friday from
    7:30 AM to 1:00 PM. The commercial working week varies but in
    general is from 7:30 AM to 12:30 PM and from 4:00 -- 8:00 PM.
    Offices close Friday afternoons during designated Muslim prayer
    time. Offices are closed on Sundays.

5.  **Business Infrastructure**

    Chad\'s infrastructure is very limited but a number of improvements
    are underway. Transportation links with the nearest port facilities
    are poor, resulting in high transportation costs. Chad\'s interior
    road system is also quite poor, but several road projects are
    planned or already underway, particularly in the south, near the oil
    export activity. The telecommunication system is basic and expensive
    but Internet and cellular services are available. Cellular phone use
    is growing particularly fast. Electricity is expensive and
    unreliable, posing a serious handicap for commercial development.
    Development of retail, commercial, industrial and residential real
    estate has been slow. There are six modest commercial banks with
    international connections, but no investment bank. Supermarkets do
    not exist, but there are a few small retail outlets that cater to
    foreigners and offer imported foods.

    **Transportation:** Chad is a landlocked country with poor
    transportation links to ocean ports. The nearest port facility is in
    Douala, Cameroon, 1800 km (over 1000 miles) from the capital of
    N\'Djamena. There is no Chadian rail system, so merchandise must be
    flown in on the limited flights entering Chad or trucked overland
    over inferior roads to the Cameroonian railhead of Ngaoundere where
    trains run to Douala. The rail link from Ngaoundere is often blocked
    due to frequent breakdowns, so it is sometimes necessary to truck
    merchandise over more bad roads in Cameroon. The alternative route
    is through Nigeria\'s Maiduguri (my-DOO-gur-ee) rail junction, which
    connects to Port Harcourt or Lagos. This route is reportedly quicker
    and cheaper, but the extra border crossings (and the illicit taxes
    this involves) are a significant obstacle. Both routes require
    vigilant protection of merchandise, since theft is quite common,
    particularly in Douala. To ship goods to Chad by surface or air, it
    is recommended that a freight forwarder (transitaire) be used.
    STAT/SAGA and SDV/SOCOPAO are the two major freight forwarding
    companies in Chad. The Commercial Section at the Embassy can provide
    contact information.

    Chad\'s internal road network is in poor shape but gradually
    improving. Chad has nearly 40,000 kilometers of roadway, but less
    than ten percent are maintained by the national organization in
    charge of roadways, and only 524 kilometers are paved. Many
    important roads are impassable during the rainy season, rendering
    some regions inaccessible for several months per year. This includes
    portions of the road used to transport goods from the port in
    Douala. A recently finished paved road connecting N'Djamena to the
    town of Kelo the south has dramatically improved road links between
    the capital and the southern agricultural zone. Other projects are
    planned to pave the roads between Kelo and Moundou and Moundou and
    the Ngaoundere, Cameroon rail terminal.

    A one-lane bridge crosses Logone (Lo-gOun) River between N\'Djamena
    and Kousseri (COO-sir-ee) in Cameroon. There are ferry crossing
    points of the Logone River at Bongor and Lai in the South.

    The road from N\'Djamena towards the eastern city of Abéche
    (AH-bay-chey) is being improved through funding from several
    sources. The first 100 km section is been paved from N'Djamena to
    Massaguet. Previous projects have improved the road links to the
    grain producing Salamat region and the central Guera region.
    Additional projects are planned to pave some roads and build bridges
    and culverts between N'Djamena and Abéche.

    The Sarh-Doba-Moundou-Lere road is essential for the transport of
    Chadian cotton. This laterite road is sometimes well maintained but
    periodically falls into disrepair when funding is scarce. The
    Kelo-Moundou-Sahr sections are due to be paved during the next three
    years.

    **Air Transport:** Chad has one international airport in N\'Djamena
    with regular direct flights to Paris and several African cities. The
    N\'Djamena Airport is modern but lacks standard travel comforts and
    facilities despite a recent upgrade to the departure terminal. The
    airport is run by the International Agency for Air Navigation
    Security in Africa (ASECNA - Agence pour la Securite de la
    Navigation Aerienne en Afrique). The country has 109 additional
    rural airports, with 5 paved runways. Several small companies offer
    charter domestic flights to regional cities and the Zakouma Game
    Park in southeast Chad. Others offer cargo service to Dubai.

    **Communications:** The communications system is limited to the
    capital and some regional cities. Fixed telephone services are
    provided by the state telephone company, SotelTchad, which is due to
    be privatized during the next several years. SotelTchad has a
    monopoly on international and local telephone services as well as
    Internet service. Chad\'s 8,400,000 inhabitants have access to only
    13,000 fixed telephone lines, a telephone density ratio of 14 lines
    per 10,000 inhabitants. In addition, nearly 10,000 of these phone
    lines are in the capital of N'Djamena, which accounts for ten
    percent pf the population. There is a 7-year wait for a telephone.
    The current system is being modernized and capacity will be
    increased to 31,000 lines. Cellular telephones have also greatly
    increased communication capacity, as two companies, Celtel and
    Libertis, began operating in N'Djamena in late 2000. As of late
    2002, they together had more than 44,000 subscribers and begun to
    extend to other cities in Chad.

    **Housing:** Residential housing is generally scarce and poor in
    quality. Years of civil unrest and war have destroyed residential
    and business structures. Renovations have proceeded slowly. Modern
    houses and apartments are scarce and most are below U.S./European
    norms. This scarcity is due in part in the lack of construction
    materials and the high cost of energy, and more recently due to the
    influx of expatriates affiliated with the Doba oil project, who have
    rented most of the available, suitable properties. Most local houses
    are made of mud bricks. Almost all other construction material, such
    as steel and cement, is imported from neighboring countries.

    **Medical Facilities, Health, Food, and Water:** Medical facilities
    are extremely limited in Chad. The doctor/patient ratio is less than
    2 doctors per 100,000 people. Trained specialists are lacking in
    most categories but some are available in ob/gynecology, pediatrics,
    and cardiology. Competent dentists are available but expensive.

    A complete list of medical facilities and physicians in N'Djamena
    can be found at the Emergency Services page of Embassy N'Djamena's
    Consular Section website at
    usembassy.state.gov/ndjamena/wwwhconsulemergency.html.

    Hospital facilities are basic and sanitation is quite poor. Local
    medical services may be used for routine consultations but medical
    evacuation is usually advisable for any complication. Additional
    health information can be obtained from the Centers for Disease
    Control\'s international hotline (404) 332-4559. Basic medicine is
    readily available but more specialized or costly medicines are more
    difficult to find.

    The Centre Medico-social de l'Ambassade de France (Tel:
    235-52-28-37), under the auspices of the French embassy, is also
    available to serve the expatriate population in N'Djamena, both for
    primary and urgent care needs. It is not, however, a fee-for-service
    clinic. Use of the clinic requires evidence of: (a) medical
    insurance, (b) supplemental medical insurance, (c) evacuation
    (repatriation) insurance, and (d) evidence of a social security
    number. In addition, there is a fee of 25 euros per person per month
    for individual enrollment, 25 euros per person per month for
    couples, or 23 euros per month for a couple with one or two
    children. Business with a minimum of five employees may enroll for
    276 euros per person per year.

    Pharmacies are open from 8:00 am until noon and from 4:00 until 8:30
    pm Monday to Saturday. On Sundays and at night, two pharmacies are
    always open in rotation somewhere in the city in case of emergencies
    (the \"pharmacie de garde\" system). After-hours pharmacy addresses
    are posted on every pharmacy door and published in the newspapers.

    Visitors to Chad find the weather hot, particularly in the hot
    season between April and June. Increase liquid intake of boiled,
    filtered water. Avoid alcoholic beverages and (for some) increase
    salt intake in food to replace what is lost in perspiration. Avoid
    direct sun exposure without proper lotions and sunscreens.
    Lightweight cotton clothing is recommended. In the winter months, a
    light sweater or jacket may be necessary in the evenings.

    The most widespread diseases in Chad include malaria, diarrhea and
    upper respiratory infections. AIDS is becoming an increasingly
    serious problem as infection rates have risen to alarming levels (up
    to 25 percent in high-risk groups). Malaria prophylaxis is strongly
    recommended. Since mosquitoes in this area carry
    chloroquine-resistent strains of malaria, foreigners prefer
    mefloquine/Larium. Meningitis outbreaks usually occur annually and
    several other diseases (cholera, diphtheria, chicken pox, typhoid)
    periodically appear.

    Drinking water should be boiled and filtered. Avoid ice and tap
    water in hotels, restaurants and homes unless you know the water has
    been filtered or treated. Avoid eating raw fruits, vegetables and
    salads unless peeled and/or properly washed and treated by soaking
    in a weak bleach solution. Imported dairy products are safe, but
    local dairy products are usually not pasteurized. Wash hands
    frequently during the day.

    **Travel Insurance:** Travelers are advised to check with their
    insurance companies prior to departure from the U.S. to assure
    coverage for travel abroad. A number of U.S. companies offer
    accident and medical evacuation insurance. Two local insurance
    companies are:

    Star Nationale

    BP 914, N\'Djamena

    Tel:(235) 51-42-2 / 51-56-77 Fax:(235) 52-56-77

    Marsh - Assureurs Conseils Tchadiens (an affiliate of MMC)

    BP. 139, N\'Djamena

    Tel:(235) 52-21-15, (235) 52-35-39 Fax:(23) 52-35-39.

    **Hotels:** The following is a list of N\'Djamena hotels used by
    international travelers. The range in US dollar rates reflects a
    fluctuation in CFA per dollar between 550 and 600.

##### Novotel La Tchadienne

B.P. 109, N'Djamena

Tel:(235) 52-43-12 / 52-45-25; Fax:(235) 52-59-43 / 52-43-97

Single room: USD 140-150

Email: <novotel@intnet.td>

**Hotel Meridien (Le Chari)**

B.P. 118, N\'Djamena

Tel: (235) 52-39-56 / 52-53-50; Fax: (235) 52-22-61

Single room: USD 179-190

Website: www.lemeridien.com/chad/n_djamena/hotel_td1619.shtml

Email: <dhchari@intnet.td>

**Hotel le Sahel**

B.P. 1500, N\'Djamena

Tel: (235) 52-03-33; Fax: (235) 52-43-57

Single Room: USD 80-90

E-Mail: <tv2000@intnet.td>

**Hotel La Palmeraie**

B.P. 610, N\'Djamena

Tel: (235) 51-15-69

Single room: USD 50-60

**Aurora Hotel**

B.P. 578, N\'Djamena

Tel: (235) 28-09-04 / 841-14-63

Single room: USD 45-50

**Hotel Le Central**

B.P. 697, N\'Djamena

Tel: (235) 52-26-90 / 52-31-07 Fax: (235) 52-43-70

Single room: USD 60-65

**Sahara Hotel**

Boulevard de la Revolution

B.P. 1285, N'Djamena

Tel: (235) 51-71-71 Fax: (235) 51-51-80

Single room: USD 50-55

Accommodations can be rated between 1-3 stars and are not up to most
European/U.S. standards. The Hotel Chari and Novotel La Tchadienne are
equipped with local and international television and swimming pools. The
other hotels do not have pools. Hotel le Sahel has some business
services available.

**International Mail and Courier Service:** Airmail letters to the U.S.
weighing up to 20 grams cost FCFA 500 for stamps. Hotels sell post cards
and stamps. There is no postal service to homes and businesses. All mail
is distributed to a post office box number or \"Boite Postale.\" Mail
service departs N\'Djamena to Europe and elsewhere three times per week.

**Express Mail Packages:** can be sent to the U.S. by:

DHL: 0-500 grams, USD 65; ( plus USD 16.60 for each extra 500 grams)

EMS: 0-500 grams, USD 35; (plus USD 8 to 10 for each extra 500 grams)

(These price estimates are subject to change.)

**EMS Office Hours:** 7:00-12:00, 15:30-17:00, from Monday through
Friday and Saturday 7:00-12:00. Delivery days from N\'Djamena to Paris
and points beyond: Tuesday, Wednesday, Friday, and Saturday.

**Business Services:** N\'Djamena has a limited number of business
services. There are two international accounting and consulting firms
PriceWaterhouseCoopers and Ernst and Young that offer fiscal, financial,
investment and technical assistance. A third consulting firm, Tchad
Vision 2000, represents De Chazal de Mie. Fidafrica publishes a guide
for investors and a quarterly information report on Chadian legal,
fiscal, and commercial issues. Several accounting firms, architects,
lawyers, engineers and office equipment service centers are available.

**Schools:** There is a small American international primary school with
a U.S. curriculum in N\'Djamena. There is also a French school
(Maternelle-Terminal/Kindergarten to 12th grade). N'Djamena has a host
of religious (Christian and Muslim) and private schools.

**Security:** Most areas of Chad are safe for travel, but a rebellion is
continuing in the far north B.E.T. region and travel to this area is not
recommended. Overland travel after dark is discouraged in any part of
the country due to the frequency of highway robberies at night. Crime
increases during times of political and economic instability. The loss
or theft of a U.S. passport should be reported immediately to the U.S.
embassy.

**Crime:** Petty crime is a problem in N\'Djamena and in other major
towns but violent crime is relatively rare. Government crackdowns on
crime have diminished the frequency of purse snatching and petty theft
but incidents occur, particularly where expatriates shop. Information
concerning safety and security in the region can be obtained from \"A
Safe Trip Abroad\" and \"Tips for Travelers to Sub-Saharan Africa.\"
These pamphlets provide information on personal security and travel in
general. Both are available from the Superintendent of Documents at the
U.S. Government Printing Office, Washington, DC 20402.

**Currency Exchange and Credit Cards:** Chad is a member of the CFA
(Communaute Financiere Africaine) zone (\"franc zone\"), and the Central
African Monetary Union (CEMAC) which guarantees the convertibility of
CFA into Euro at a fixed rate of 655.99 CFA=1 Euro. Travelers may find
it preferable to bring euros since they are exchanged on much better
terms than US dollars. There are no limitations on the importation of
foreign currency. Major currencies can be exchanged at all the local
banks. Credit cards are only accepted at major hotels and airlines, and
are seldom used.

**Electricity:** Local rates are among the highest in the world. This is
a serious commercial handicap that reduces the profitability of many
businesses and deters foreign investment. All subscribers must pay a
service deposit of USD 400; this deposit is refundable upon termination
of the contract, less any outstanding balance due. Usage fees are
approximately 15 cents for the first 60 kWh and 30 cents for each
additional kilowatt hour. Customers are also billed for meter rental and
maintenance as well as an 18 percent value-added tax. Monthly
electricity bills can exceed USD 1,750 for some small businesses,
depending on use of air conditioners. Installation costs usually range
from about USD 300 to USD 2,000.

**Water:** Major consumers (companies, international organizations,
embassies) are billed on a monthly basis, but individual consumers
receive bi-monthly bills. A deposit of approximately USD 40 is required
for initial service. The rate is fixed at US 20 cents per 20 cubic
meters. If water installation is required, the rate is based on the
location and importance of the site. Installation charges vary between
USD 75 and 200.

**Climate:** Chad has two seasons -- one rainy season (June to October,
with the most rain in July and August) and a dry season (November to
May). Annual precipitation varies between 0 mm in the Sahara Zone and
over 1000 mm in the southern Sudanian Zone. In between lies the Sahelian
Zone with 300 --to 800 mm of annual precipitation. Temperatures range
from 15 degrees to 45 degrees Celsius, although 50 degrees can be
reached in the hottest months of April and May.

**GMT/Time:** Chad is one hour ahead of GMT. Chad is six hours ahead of
U.S. East Coast time during standard time (winter) and five hours ahead
during daylight savings time (summer).

**Restaurants:** The average price per meal in a good restaurant in
N\'Djamena is approximately 10,000-12,000 FCFA (USD 15-20) not including
drinks, appetizers or desserts. Restaurants are open for lunch generally
from 11:00 AM to 2:00 PM, and for dinner from 7:00 PM onward. Tipping is
optional, however, 10 percent is the standard under normal service
conditions. Service is never included in the bill.

There are no American restaurants or franchised establishments.

The following restaurants typically have air-conditioned dining rooms
and serve French or international cuisine:

Le Central Restaurant and Bar, Tel: (235) 52-26-90 (Closed Monday)

Le Shanghai Restaurant, Tel: (235) 52-38-40 (Open every day)

Restaurant Ali Baba, Tel: (235) 841-20-74 (Open every day)

Restaurant Hong Kong, Tel: (235) 29-14-17 (Open every day)

Restaurant Toumai, Tel: 25-67-24 (Open every day)

The following restaurants are popular and serve basic entrees,
sandwiches, and pizza. They do not have indoor dining rooms.

Le 8, Tel: (235) 29-97-01 (Open every day)

Le Carnivore Restaurant, Tel: (235)52-30-72 (Open every day)

Le Pelican Restaurant, Tel: (235) 51-61-77 (Open every day)

The Hotel Novotel La Tchadienne and Hotel Le Chari both have indoor and
outdoor restaurants, as well as reception and bar facilities (see hotel
section for telephone numbers).

**Banks:** Chad has several commercial banks that are generally open
from 7:30 AM to 1:30 PM Monday through Thursday. Banks close at 10:30 AM
on Fridays do not open on Saturdays. Foreigners can open FCFA bank
accounts. Foreign currency can be exchanged for FCFA only. FCFA can be
exchanged legally to foreign currencies but is subject to the payment of
a foreign exchange tax.

Most banks have correspondent banks in the U.S. and France, including:
Citibank Paris and New York; Deutsche Bank, Frankfurt; American Express
Paris and New York; Societé Générale de Paris; Credit Lyonnais, Paris;
Credit Commercial de France Paris; Bank Worms Paris; Caisse Central des
Banques Populaires Paris; Bank of New York; and New York and Manhattan
Bank.

Chadian banks provide various services: short and long term credit,
technical assistance to small and medium size enterprises, foreign
operations, exchange letter of credit and checking and savings accounts,
etc.

The major banks in Chad are:

Societé General Tchadien du Banque (S.G.T.B.)

B.P.461, N'Djamena

Tel:(235) 52-28-01./52-28-76; Fax: (235) 52-37-13

Banque International de l'Afrique au Tchad (B.I.A.T.)

B.P. 87, N'Djamena

Tel: (235) 52-43-14 or 52-43-21; Fax: (235) 52-23-45 or 52-30-53

Financial Bank Tchad

B.P. 804, N\'Djamena

Tel: (235) 52-33-89, 52-26-60 or 52-26-62; Fax: (235) 52-29-05

Commercial Bank Tchad (CBT) former Banque de Developpement du Tchad
(B.D.T.)

B.P. 19, N\'Djamena

Tel: (235) 52-28-29 or 52-32-84; Fax: (235) 52-33-18

Banque Commerciale du Chari

B.P.468, N'Djamena

Tel: (235) 51-89-58 or 51-89-85; Fax: (235) 51-62-49

Banque Agricole du Soudan au Tchad

B.P. 1727, N\'Djamena

Tel: (235) 51-90-41 or 51-90-42; Fax: (235) 51-90-40

**Labor Code Legislation:** Chad\'s labor code of 1996 was compiled with
assistance from the World Bank and the International Labor Organization
(ILO). The Code covers four aspects of work relations between the
employer and employee and provides information concerning employee
hiring/dismissal, suspension, modification, work conditions, social
contracts, health, salaries, rights to labor organizations, etc.

Several mandatory allowances are paid and include transportation, health
indemnities, bonus and vacation. Social insurance of 7,500 FCFA fixed
rate is applicable each quarter.

Beyond the minimum wage (SMIG), there is a scale of approximate monthly
salaries for the following occupations:

-   Worker/Laborer unskilled USD 50

-   Worker/Laborer semi-skilled USD 100

-   Worker/Laborer skilled USD 350

-   Bilingual office worker USD 450

-   Bilingual receptionist USD 250

-   Secretary USD 365

-   Bilingual Accountant USD 585

-   Guard USD 200

-   Cook USD 120

-   Maid/Housekeeper USD 80

    The above figures are indications, and can vary among different
    employers. Workers earn two days of paid vacation each month. A
    thirteenth month salary bonus is also paid in December.

    **Company Taxes:** These taxes are applicable to all legally
    registered corporations and are imposed in the Chadian fiscal year
    from January 1 to December 31. The rates are as follows: corporate
    profit tax 45 percent, rental properties income, built or unbuilt 25
    percent.

    **Employer and Employee Charges:** These rates are as follows: 6
    percent for family allocation, 2.5 percent for work-related
    accident/injuries, 6 percent workers compensation: (4 percent is
    carried by employer and 2 percent by the employee), 3 percent-30
    percent, seniority bonus: based on minimum salary of the worker\'s
    professional classification. The bonus based on seniority is
    calculated from 1 to 25 years service to the company and 6 percent
    retirement: (2 percent is carried by the employer and 4 percent by
    the employee).

    **Personal Income Taxes:** These taxes are based on several
    variables and are withheld by the employer. Tax rates range from 20
    percent for monthly incomes less than FCFA 300,000 to 65 percent for
    those making over FCFA 6,000,000 per year. Deductions are allowed
    for dependants and various items.

    **Other Taxes:** A Value-Added Tax (TVA), of 18 percent is applied
    to all services and products manufactured locally or imported except
    some categories of basic goods. A tax on informal sector businesses,
    the Impot General Liberatoire (IGL) was implemented on January 1,
    1998, assessed at 5 percent of the annual turnover.

    **Transportation in and around N\'Djamena:** Transportation in and
    around N\'Djamena is provided by mini-vans and taxis. Fares range
    from 25 cents for shared rides on established taxi routes to USD 2
    and higher for door to door service. There are no meters and fares
    are negotiable. Trips to the airport can cost USD 6 or more even
    though the distance is short. Reliable and reasonably priced taxis
    are yellow in color. Buses are not recommended due to lack of safety
    and reliability. There is no trolley or subway system. Cars with a
    driver are available for rent at major hotels.

    There are several travel agencies that can plan tourism trips in
    Chad. Charter air service is available from air charter companies
    such as Air Affaire Chad, B.P. 526, Tel/Fax:(235) 52-06-20 and
    Rene J. Mary Aviation, B.P.740, N\'Djamena, Tel/Fax:(235) 52-39-42.
    Transportation away from the capital is generally less reliable but
    several agencies run regular trips between N'Djamena, Moundou and
    Sarh using minibuses and Land Cruisers Tractor trailers and pickup
    trucks are the usual means of transport between N\'Djamena and most
    other towns.

    Bicycles and motorbikes are a common means of transportation in
    N\'Djamena. Bicycles can be rented in N\'Djamena for USD 2 per day
    and motorbikes for USD 10 per day.

    **Sports and Activities:** Hotels permit non-guests to use their
    swimming pools for a small fee. The Hotel Novotel La Tchadienne and
    Hotel du Chari charge about USD 3 per day. Weekly, monthly and
    yearly memberships are available. There are tennis courts at the
    Novotel, Hotel du Chari and the International Club near the French
    Air Base in Farcha. Horses can be hired at the \"Club Hippique de
    Chagoua.\" Camel riding is also available on weekends. There is a
    9-hole golf course with sand fairways and greens. The course is not
    up to U.S. or European standards.

    **Shopping:** Shopping is concentrated in the area near the Grand
    Mosque and on Avenue Charles de Gaulle. There are restaurants, bars,
    food products, carpets, woven mats, hardware, fabric, jewelry,
    African artisan goods, wool rugs, beads, leather products, and
    woodcarvings. Women\'s groups sell embroidered fabrics, tablecloths,
    and other handmade goods. There are two government sponsored artisan
    centers near the Novotel La Tchadienne and the French School. The
    Centre d\'Apprentissage Manuel Feminin (CTIMAF) behind the Farcha
    Cemetery sells handmade textile items. The Mission de Kabalaye on
    Avenue Bokassa sells embroidery from the Tibesti region.

    **Places to Visit Near N'Djamena:**

    **The City of N\'Djamena:** Formerly called Fort-Lamy, this
    hundred-year old former French colonial town has grown rapidly since
    independence in 1960 and its population is now estimated at
    approximately one million. The city was seriously damaged during the
    civil war and political turmoil in the 1980\'s, but it is gradually
    being rebuilt.

    **Gaoui:** The best short visit from N\'Djamena. This picturesque
    village is known for its pottery, museum and general hospitality.

    **Linia market:** The attraction of this town is the vibrant Sunday
    morning market. There are large numbers of donkeys and other animals
    for sale. Colorful clothing, gum arabic, food, grains, mats, and
    local spices such as ginger are all for sale.

    **Dougia:** Located about 45 minutes north of N\'Djamena towards
    Karal and Lake Chad, this resort offers a large swimming pool,
    restaurant, and comfortable overnight facilities in an attractive
    setting on the banks of the Chari River. Elephant Rock is 30 minutes
    away from Douguia. It offers opportunities for rock climbing and
    cave exploration. A four-wheel drive vehicle is recommended.

    **Lake Chad:** The size of the lake varies considerably through out
    the year. The lake is full of reed beds, floating islands, and is
    visited in the winter months by migrating birds from Europe, Asia,
    and other parts of Africa. The lake is home to the Buduma people who
    primarily fish the lake and to the Kotoko people who raise live
    stock and farm the lake region.

    **Logone Gana:** A Kotoko village with a population of several
    thousand people. This fishing village on the Logone is walled with
    several two-story buildings in the traditional Kotoko style.

    There are also two tourist attractions located across the border in
    Cameroon. Note that this requires a Cameroonian entry visa, as well
    as a visa for return entry into Chad.

    **Kousserie:** Located across the river in Cameroon, Kousseri has a
    daily market, several general stores, and fabric shops. The market
    is small, but has a variety of imported items.

    **Waza National Park:** A large northern Cameroon game park, not far
    from N\'Djamena featuring elephants, giraffes, antelopes, gazelles,
    warthogs, lions, water fowl and many other varieties of birds. The
    \"campement de Waza\" is a hotel with a collection of small stone
    cottages arranged down the side of a hill offering a scenic
    restaurant/bar overlooking the park.

6.  **U.S. Embassy Assistance:**

    The Commercial Section of the U.S. Embassy in Chad can provide some
    assistance and advice to visiting American businesses. The U.S.
    Embassy is located on Ave. Felix Eboue, N\'Djamena. For contact
    information, see Chapter 11: U.S. and Chad contacts.

    The Embassy of the Republic of Chad in the U.S. is located on 2002 R
    Street N.W., Washington, D.C. 20009, Tel: (202) 462-4009, Fax: (202)
    265-1937. There is no Chad-U.S. Chamber of Commerce in Washington.

    **CHAPTER 10: ECONOMIC AND TRADE STATISTICS**

    **APPENDICES:**

```{=html}
<!-- -->
```
A.  **Country Data:**

    Area: 1.284 million square kilometers (496,000 square miles); three
    times the

    size of California

    Population: 8.9 million (2002 est.)

    Pop. Growth Rate: 2.6 -- 3.1 percent

    Religions: Muslim, 54 percent; Christian, 34 percent; other
    indigenous beliefs, 12 percent

    Government System: Chad is a republic. It has a parliamentary system
    with separated executive, legislative and judicial branches of
    government.

    Head of State: President Idriss Deby was elected on July 11, 1996
    and reelected to a five-year term on May 20, 2001.

    Prime Minister: Moussa Faki Mahamat

    Cabinet: The council of ministers includes 29 Ministers appointed by
    the president upon recommendation by the prime minister.

    Key Ministers: (Appointed June 25, 2003)

    Foreign Affairs / Minister of State Nagoum Yamassoum

    Agriculture / Minister of State David Houdeingar Ngarimaden

    Economy and Finance Idriss Ahmed Idriss

    Commerce Ahmat Mahamadi

    Mines and Energy Mahamat Allahou Taher

    Petroleum Youssouf Abassallah

    National Administration (Interior) Routouang Yoma Golom

    Public Security Abderahman Moussa

    Defense Mahamat Nouri

    ::: Definition-Term
    Post & Telecommunications Baradine Haroune
    :::

    Environment and Water Djimrangar Dadnadji

    Public Works & Transportation Adoum Younous

    National Assembly: 155 elected members; Nassour Guelendouksia
    Ouaidou, President; Seats by party: MPS 122, FAR 11, URD 4, UNDR 3,
    others 15. A second legislative body, the Senate, was stipulated in
    the 1996 constitution, but has yet to be created.

    Languages: French and Chadian Arabic are the official languages.
    More than 100 other languages and dialects are spoken. The largest
    local language group by far is the Sara-Ngambaye group, which covers
    a large portion of southern Chad. Chadian Arabic is quite different
    from classical Arabic. French is spoken in the cities, towns and
    larger villages and is also the working language of the government.
    Very few Chadians speak English, although the labor pool includes a
    few Anglophone Nigerians and Sudanese.

B.  **Domestic Economy:**

  ----------------------------------- ----------- ----------- -----------
                                      2001        2002        2003 (est.)

  GDP in million USD                  1,514       1,846       2,418.6

  GDP Growth Rate %                   8.1         10.6        9.1

  GDP per capita (USD)                216         237         267.6

  Inflation %                         12.4        5.0         6.0

  Government Spending as a percentage 20.2        30.9        19.8
  of GDP                                                      

  Unemployment                        \-          \-          \-

  Foreign Exchange Reserves (in       35.4        49.84       67.72
  million USD)                                                

  Average Exchange Rate for USD 1     733         670         560

  Foreign Debt (in millions of USD)   1085.94     1,061.4     1,400.4

  Debt Service Ratio (ratio off       13.8        16.0        15.4
  principal interest payments on                              
  foreign debt to foreign income)                             
  ----------------------------------- ----------- ----------- -----------

Sources: BEAC, Chadian authorities and IMF staff estimates

Chadian government unemployment figures are not available. A small
percentage of the economic active population is employed in the formal
sector. An estimated 80 percent work in subsistence farming and cattle
raising. A small number of people are salaried. Many work in informal
activities such as street vending, commerce and day labor.

C.  **TRADE: (USD million):**

  ------------------------------- ------------- ------------- -------------
                                  2001          2002          2003 (est.)

  Total Exports (f.o.b.)          254           197.5         256.96

  Total Imports (c.i.f.)          637           797.7         1,032.8

  Exports to Chad from the U.S.   137           127.34        N/A

  Imports from Chad to the U.S.   5.7           5.70          N/A
  ------------------------------- ------------- ------------- -------------

Sources: World Bank, IMF and the International Trade Commission.

D.  **Investment Statistics (Expressed in percentage of GDP):**

  ------------------------------- ------------- ------------- -------------
                                  2001          2002          2003 (est.)

  Gross Investment                41.6          65.9          64.3

  Central Government Investment   18.5          11.5          15

  Private Sector Investment       22.2          22.6          22

  Of which: oil sector            17.1          19.5          18
  ------------------------------- ------------- ------------- -------------

Sources: Administration, BEAC, and IMF.

Detailed foreign direct investment (FDI) statistics are unavailable, but
U.S. investment is rising dramatically as the Doba oil project proceeds
to invest USD two billion in Chad through 2004. With two U.S. companies
leading this project, the U.S. will become the leading source of FDI in
Chad. Malaysia is also contributing investments into the Doba project
through its state oil company. France has historically been Chad's
biggest source of FDI, but this is changing. French share of total of
foreign investment capital was estimated at between 50-60 percent prior
to the Doba project. Other sources of FDI include South Korea, the
United Kingdom, Sudan, Libya and Taiwan.

## Chapter 11: Contacts in Chad and Africa {#chapter-11-contacts-in-chad-and-africa .unnumbered}

1.  **U.S. Embassy Trade Related Contacts:**

    If mailing from United States:

    U.S. Embassy N\'Djamena

    Commercial Section

    2410 N'Djamena Place

    Dulles, VA 20189-2410

    E-Mail: dembatk@state.gov

    Tel: (235) 51-70-09 / 51-77-59 / 51-62-11 / 51-92-33

    Fax: (235) 51-56-54

    Local U.S. Embassy mailing address:

    Ambassade des Etats-Unis d\'Amérique

    B.P. 413

    N\'Djamena, Tchad

    Officers:

    Ambassador: Christopher E. Goldthwait

    Deputy Chief of Mission: Cheryl A. "Casey" Casebeer

    Economic /Consular Officer: Vincent D. Spera

    Commercial Specialist: Tite K. Demba

2.  **Chamber of Commerce / Commercial and Trade Associations**

    NOTE: There is no American Chamber of Commerce in Chad, but plans a
    underway for a less formal U.S.-Chadian business roundtable.

    Chambre de Commerce, de l\'Industrie, de l\'Agriculture, et de
    l'Artisanat

    (Chamber of Commerce, Industry, Agriculture, and Handcrafts)

    Rue du Colonel Moll, B.P.458

    N'Djamena, Chad

    President: Abdoulaye Djonouma

    Tel: (235)52-52-64/52-32-92; Fax: (235) 52-14-98 /51-76-92

    Conseil National du Patronat Tchadien (CNPT)

    Avenue Charles de Gaulle

    B.P. 134 or B.P. 604

    N'Djamena, Chad

    Tel: (235) 52-25-71; Fax: (235) 52-25-71

    Secretary General: Rhakis Mannany

    Federation Nationale des Consultants du Tchad (FNCT)

    (National Federation of Chadian Consultants)

    B.P. 4007, N\'Djamena, Chad

    Tel: (235) 51-87-98

    President: Jacques G. Golsala

    West African Enterprise Network (WAEN)

    B.P. 899, N\'Djamena, Chad

    Tel:(235) 51-33-16

    Fax:(235) 51-89-59

    Contact: Mr. Khalil Djalal, Coordinator

    Union des Transporteurs Tchadiens

    (Union of Chadian Transporters)

    B.P. 529, N\'Djamena, Chad

    Tel: (235) 51-45-27

    Taxi Cooperative

    B.P. 812, N\'Djamena, Chad

    Tel: (235) 51-43-16

    L\'Ordre National des Medecins du Tchad

    (Chadian Medical Association)

    B.P. 1296, N\'Djamena, Chad

    Tel: (235) 51-77-90

3.  **Chadian Government Offices Related to Key Sectors:**

    Ministry of Finance and Economy

    (Ministère des Finances et de l'Economie)

    B.P. 144, N\'Djamena, Chad

    Contact person: Bidjere Bindjaki, Directeur General

    Tel: (235) 52-55-53 / 52-46-64 Fax: (235) 52-49-08

    Ministry of Agriculture

    (Ministère d'Agriculture)

    B.P. 441, N\'Djamena, Chad

    Contact person: Boubakhary, Secrétaire Général

    Tel: (235) 52-21-48 Fax: (235) 52-51-19

    Ministry of Public Works, Urban Development, Transport and Housing

    (Ministère des Travaux Public, des Transports, de l'Habitat et de
    l'Urbainisme)

    B.P. 984, N\'Djamena, Chad

    Tel: (235) 52-37-67

    A.S.E.C.N.A (African Agency for Air Navigation Security)

    B.P. 70, N\'Djamena, Chad

    Tel: (235) 52-27-77 Fax: (235) 52-62-31

    Ministry of Post and Telecommunications

    (Ministère des Postes & Telecommunications)

    B.P. 154, N\'Djamena, Chad

    Contact person: Mr. Oumar Moussa Mbassa, Directeur General

    Tel:(235) 52-15-55 Fax:(235) 52-15-30

    SotelTchad -- Societe de Telecommunication du Tchad

    (Telecommunications Company of Chad)

    B.P. 1132, N\'Djamena, Chad

    Contact person: Mr. Ali Mahamat Zene Ali Fadel, Director General

    Tel: (235) 52-14-41 Fax: (235) 52-14-05 / 52-14-14

    Ministry of Industrial, Commercial, and Crafts Development

    (Ministère du Developpement Industriel, Commercial et de
    l'Artisanat)

    B.P. 458, N\'Djamena, Chad

    Contact persons: Mr. Oumar Abdallah Lebine, Director of Commerce

    Mr. Mahamat Adoudou Allazam, Director of Industry

    Tel: (235) 52-30-49 / 52-27-33; Fax: (235) 52-27-33

    Ministry of Mines and Energy

    (Ministere des Mines et de l'Energie)

    B.P. 94, N'Djamena, Chad

    Contact person: Mr. Tabe Eugene Ngaoulam, Director General

    Tel: (235)52-38-50 Fax; (235) 52-25-65

4.  **Advertising and Market Research Firms:**

> There are no advertising or market research firms in Chad. Billboard
> advertising is negotiated by companies directly with Mayors' offices
> in N'Djamena and other towns.

5.  **Commercial Banks in Chad**

> Societe Generale Tchadien de Banque (SGTB, formerly BTCD)
>
> B.P. 461, 26 Rue Robert Levy
>
> N\'Djamena, Chad
>
> Tel: (235) 52-28-76/52-28-01/52-41-90; Fax: (235) 52-37-13
>
> President Directeur General (CEO): Mr. Chemi Kogrimi
>
> Banque International d\'Afrique au Tchad (BIAT)
>
> B.P. 87, Avenue Charles De Gaulle
>
> N\'Djamena, Chad
>
> Tel: (235) 52-43-14/52-43-21/52-56-84; Fax: (235) 52-23-45
>
> Directeur General: Mr. Guy Mallett
>
> Commercial Bank Tchad (CBT) Former Banque de Developpement du Tchad
> (BDT)
>
> B.P.19, N\'Djamena, Chad
>
> Tel: (235) 52-28-29 / 52-32-84; Fax: (235) 52-38-18
>
> Directeur General: Mr. George Djadjo
>
> Financial Bank Tchad
>
> B.P. 804, Avenue Charles De Gaulle
>
> N\'Djamena, Chad
>
> Tel: (235) 52-33-89/52-26-60/52-26-62; Fax: (235) 52-29-05
>
> Directeur General: Mr. Andre Olive
>
> Banque Commercial du Chari (BCC)
>
> B.P. 468, Avenue Charles De Gaulle, N\'Djamena, Chad
>
> Tel: (235) 51-89-85 /51-89-58 /52-33-96; Fax: (235) 51-62-49
>
> Directeur General: Hamed El Mistiri
>
> NOTE: B.C.C. is the former Banque Tchado-Lybian
>
> Banque Agricole du Soudan au Tchad
>
> B.P. 1727, Ave. El Nimery
>
> N'Djamena, Chad
>
> Tel: (235) 51-90-41 / 51-90-42 Fax: (235) 51-90-40
>
> Directeur General, Mr. La Bast

6.  **regional and Multilateral Development bank Offices**

> Banque des Etats de l\'Afrique Centrale (BEAC)
>
> B.P. 50, Ave. Charles De Gaulle
>
> N\'Djamena, Chad
>
> Tel:(235) 52-50-14 / 52-41-76 / 51-23-54 / 52-26-71 / 52-28-39; Fax:
> (235) 51-44-87
>
> World Bank Chad
>
> B.P. 146, Ave. Charles De Gaulle & Avenue Commandant Lamy, Quartier
> Bololo
>
> N\'Djamena, Chad
>
> Tel: (235) 52-32-47 / 52-33-60 / 52-20-14 / 51-59-62; Fax: (235)
> 52-44-84
>
> Resident Representative: Mr. Gregor Binkert

7.  **International Accounting Firms Present in Chad**

> PriceWaterhouseCoopers (Fidafrica)
>
> Immeuble Star Nationale
>
> B. P. 1899
>
> N\'Djamena
>
> Tel : (235) 52 38 96 or 52-07-25

::: Definition-Term
> Fax: (235) 52 38 96 or 52-07-24
:::

> E-mail: <manager.pwc@intnet.td> , <fida.tchad@intnet.td>
>
> Contact person: Mr. Wilfried Le Bihan, Manager
>
> Ernst and Young International (Helios Afrique)
>
> Cabinet Henry
>
> B.P. 324
>
> N'Djamena, Chad
>
> Tel/Fax: (235) 52 36 20

::: Definition-Term
> E-mail: <vermeulenpatrick@hotmail.com>
:::

> Contact person: Mr. Patrick Vermeulen.
>
> Tchad Vision 2000 (Representative of De Chazal de Mie)
>
> B.P. 1500
>
> N\'Djamena, Tchad
>
> Tel : (235) 52-43-07; Fax: (235) 52-43-57
>
> E-mail: <tv2000@intnet.td>
>
> Contact Person: Nassir Arzamkhan

**Africa Regional Offices**

1.  **U.S. Agencies**

> Foreign Commercial Service (U.S. Dept. of Commerce)
>
> U.S. Embassy Abidjan
>
> 5, Rue Jesse Owens, 01 B.P. 1712
>
> Abidjan 01, Cote d'Ivoire
>
> Tel: (225) 21-46-16; Fax: (225) 22-24-37
>
> Contact person: Tapan Banerjee, Regional Commercial Counselor
>
> Foreign Agricultural Service
>
> Office of Agricultural Attache
>
> U.S. Embassy Abidjan,
>
> Immeuble Tropique lll
>
> O1 B.P. 1712, Abidjan 01, Cote d'Ivoire
>
> Tel: (225) 21-09-79 / 21-39-96 Fax: (225) 21-25-38
>
> Contact person: Bruce Zanin, Regional Agricultural Attache

2.  **Multilateral Development Banks**

> African Development Bank (AFDB)
>
> 01 B.P. 1387,
>
> Abidjan 01, Cote d'Ivoire
>
> Tel: (225) 20-40-15 / 20-42-18 Fax: (225) 33-14-34
>
> Contact Person: Willene Johnson, U.S. Executive Director
>
> International Finance Corporation (IFC)
>
> Douala Regional Office
>
> Tel: (237) 42-94-51 Fax:(237) 42-80-14
>
> Contact person: Mr. Mouhamadou Diop
>
> Email: <mdiop@ifc.org>
>
> N'Djamena Office
>
> Tel: (+235) 52 32 59 Fax: (+235) 52 44 84
>
> Contact person: Ms. Ronke Ogunsulire
>
> Email: <rogunsulire@ifc.org>

**U.S. Agency Contacts in Washington, DC**

1.  **Department of Commerce Contacts**

> U.S. Department of Commerce
>
> 14^th^ and Constitution Ave., NW
>
> Washington, D.C 20230
>
>  
>
> U.S. Department of Commerce
>
> Country Desk Officer: Douglas Wallace / Office of Africa
>
> Tel: (202) 482-5149
>
> Fax: (202) 482-5198
>
> E-Mail: Douglas_Wallace@ita.doc.gov
>
> The Trade Information Center (TIC)
>
> Office of Export Promotion Coordination
>
> International Trade Administration
>
> U.S. Department of Commerce
>
> 14^th^ and Constitution Ave., NW HCHB 7424
>
> Washington, D.C. 20230
>
> Tel: (202) 482-0543 Fax: (202) 482-4473
>
> Internet: http:/www.ita.doc.gov/tic

2.  **Other U.S. Government Agencies**

> U.S. Department of State
>
> Office of Central African Affairs
>
> Washington, D.C. 20520
>
> Tel: (202) 647-1707 Fax: (202) 647-1726
>
> U.S. Department of Treasury
>
> 1500 Pennsylvania Avenue, NW
>
> Washington, DC 20220
>
> Office of the Assistant Secretary for International Affairs
>
> Tel: (202) 622-1231 Fax: (202) 622-1228
>
> U.S. Department of Agriculture
>
> Foreign Agricultural Service
>
> 14^th^ and Independence Ave., SW
>
> Washington, D.C. 20250
>
> Trade Assistance and Promotion Office
>
> Tel: (202) 720-7420 Fax: (202) 690-4374
>
> Overseas Private Investment Corporation (OPIC)
>
> 1100 New York Avenue, NW
>
> Washington, D.C. 20527-0001
>
> Tel: (202) 336 8799
>
> Website: www.opic.gov
>
> Export-Import Bank of the United States
>
> 811 Vermont Avenue, NW
>
> Washington, DC 20571
>
> Tel: (202) 565-3903 Fax: (202) 565-3931
>
> John Richter, Regional Director - Africa
>
> Website: www.exim.gov
>
> U.S. Trade and Development Agency
>
> 1621 North Kent Street
>
> Arlington, VA 22209
>
> Tel: (703) 875-4357 Fax: (703) 875-4009
>
> U.S. Agency for International Development
>
> Office of West African Affairs
>
> 1300 Pennsylvania Avenue, NW
>
> Washington, DC 20523
>
> Tel: (202) 712-0220

3.  **Other U.S. - Based Contacts**

> The Corporate Council on Africa
>
> 1100 17th Street, N.W., Suite 1100
>
> Washington, DC 20036
>
> Tel: (202) 835-1115
>
> Fax: (202) 835-1117
>
> E-mail: <cca@africacncl.org>
>
> The World Bank
>
> 1818 H Street NW, Washington DC 20433
>
> Tel: (202) 458-7860
>
> Fax: (202) 473-5452
>
> Mr. Ali Khadr
>
> Country Director -- Chad
>
> Email: [akhadr@worldbank.org](mailto:rcalderisis@worldbank.org)
>
> Ms. Christine Richaud
>
> Country Economist
>
> Tel: (202) -- 458-7937
>
> Fax: (202) -- 473-8466
>
> Email: [crichaud@worldbank.org](mailto:ehuybens@worldbank.org)
>
> International Finance Corporation (IFC)
>
> 1850 I Street N.W.
>
> Washington D.C. 20433
>
> Small Business Development Division Sub Saharan Africa Department
>
> Tel: (202) 473 0398 Fax: (202) 676 9707

**CHAPTER 12: MARKET RESEARCH AND TRADE EVENTS**

1.  **Market Research:**

International Market Insight (IMI) topics that have been filed by the
Commercial Section include:

Business Opportunities with the Chad-Cameroon Oil Project

Food Processing Opportunities in Chad

2.  **Trade Event Schedule**

There are no significant trade events scheduled in Chad.

3.  **International Buyers\' Program**

Information concerning these expositions \"show time USA\" can be
obtained on the U.S. Dept. of Commerce Website
(<http://www.usatrade.gov/ibp/>) or from the Commercial Service at:

> U.S. Embassy
>
> B.P. 413 N\'Djamena, Chad
>
> Tel: (235) 51-70-09 / 51-90-52 / 51-62-11 / 51-92-33

*Fax: (235) 51-56-54*