WT/TPR/S/285 • CHAD 
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  ANNEX 5 CHAD  WT/TPR/S/285 • CHAD 
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  CONTENTS  
1   ECONOMIC ENVIRONMENT ...................................................................................... 373  
1.1   Main features ......................................................................................................... 373  
1.2   Recent econom ic developments ................................................................................ 375  
1.3   Trends in trad e and investment ................................................................................ 376  
1.4   Outlook ................................................................................................................. 379  
2   TRADE AND INVESTMENT REGIMES ......................................................................... 380  
2.1   Overview ............................................................................................................... 380  
2.2   Trade policy  objectives ............................................................................................ 383  
2.3   Trade agreements  and arrang ements ........................................................................ 383  
2.3.1   World Trade Organization ...................................................................................... 383  
2.3.2   Relations with the European  Union ......................................................................... 384  
2.3.3   Relations with the United States ............................................................................ 384  
2.3.4   Other agreements ................................................................................................ 385  
2.4   Investme nt regime ................................................................................................. 385  
3   TRADE POLICIES AND PRACTICES BY MEASURE ...................................................... 389  
3.1   Measures directly  affecting imports ........................................................................... 389  
3.1.1   Regi stration  ........................................................................................................ 3 89 
3.1.2   Procedures ......................................................................................................... 38 9 
3.1.3   Preshipment or at-d estination inspection ................................................................. 390  
3.1.4   Custom s valuation ............................................................................................... 391  
3.1.5   Rules of origin ..................................................................................................... 3 91 
3.1.6   Customs levies .................................................................................................... 392  
3.1.7   Import licensing, prohib itions and other restrictions .................................................. 394  
3.1.8   Standards and te chnical regulations ....................................................................... 395  
3.1.9   Sanitary and ph ytosanitary me asures ..................................................................... 395  
3.1.10   Contingency measures ........................................................................................ 396  
3.1.11   Other measures ................................................................................................. 397  
3.2   Measures directly  affecting exports ........................................................................... 397  
3.2.1   Procedures ......................................................................................................... 39 7 
3.2.2   Expo rt taxe s ....................................................................................................... 39 7 
3.2.3   Export prohibitions, restrictions and licensing ........................................................... 398  
3.2.4   Export subsidies, promotion and a ssistance  ............................................................. 399  
3.3   Measures affecting production an d trade .................................................................... 399  
3.3.1   Ince ntives .......................................................................................................... 3 99 
3.3.2   Competition and price control regime ...................................................................... 400  
3.3.3   State trading, State en terprises and priv atizatio ns .................................................... 401  
3.3.4   Government  procurement ..................................................................................... 402  
3.3.5   Intellectual property rights .................................................................................... 403  WT/TPR/S/285 • CHAD 
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  4   TRADE POLICY  BY SECTOR ...................................................................................... 405  
4.1   Agriculture and related activities ............................................................................... 405  
4.1.1   Overview ............................................................................................................ 4 05 
4.1.2   Agricultural policy ................................................................................................ 40 6 
4.1.3   Policy by subsector .............................................................................................. 407  
4.2   Mining, ener gy and wa ter ........................................................................................ 412  
4.2.1   Mining products ................................................................................................... 412  
4.2.2   Petroleum products .............................................................................................. 413  
4.2.3   Electricity and water ............................................................................................. 416  
4.3   Manufac turing ........................................................................................................ 41 8 
4.4   Services ................................................................................................................  420 
4.4.1   Transport ........................................................................................................... 4 20 
4.4.2   Tourism .............................................................................................................. 422  
4.4.3   Telecommunications and postal se rvices ................................................................. 423  
4.4.4   Financial services ................................................................................................. 426  
REFERENC ES ................................................................................................................ 429  
5   APPENDIX - TABLES ................................................................................................ 431  
 
CHARTS 
Chart 1.1 Direction of merchandise trade, 2005 and 2010 .................................................... 377  
Chart 1.2 Structure of mercha ndise trade, 200 5 and 2010  ................................................... 378  
Chart 4.1 Trend in the industrial production index and its components, 2005-2011 .................. 419  
Chart 4.2 Insurance compan y premiums, 2005-2010  .......................................................... 428  
 
TABLES 
Table 1.1 Basic economic indicators, 2006-2012 ................................................................. 374  
Table 1.2 Balance of payments, 2006- 2012 ....................................................................... 375  
Table 2.1 Main trade and investment laws  currently in forc e, Januar y 2013 ............................ 381  
Table 2.2 Business star t-up expenses ............................................................................... 386  
Table 2.3 Main taxes and charges applicable to businesses set up in Chad .............................. 387  
Table 3.1 Composition of pu blic revenues , 2008-201 2 ......................................................... 392 
Table 3.2 Excise duty: rates in force since 1 January 2009 ................................................... 393  
Table 3.3 Products subject to import pr ohibition, authorizat ion or co ntrol ............................... 394  
Table 3.4 Market values and levies on exports of live animals ............................................... 398  
Table 3.5 Products whose prices are controlled ................................................................... 400  
Table 3.6 Trend in State particip ation in busine sses, 2006- 2012 ........................................... 401  
Table 3.7 Trend in the number of deposits at the SNL, 2006- 2012 ........................................ 404  WT/TPR/S/285 • CHAD 
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  Table 4.1 Trend in agricultural pr oduction by seas on, 2006-2 012 .......................................... 405  
Table 4.2 Main PNSA achievements, 2005 to June 2012 ....................................................... 406  
Table 4.3 Selected features of th e cotton sector, 200 1 and 2007- 2012 .................................. 409  
Table 4.4 Features of the various mining  rights .................................................................. 412  
Table 4.5 Authorization and permits for engagi ng in hydrocarbons related activities ................ 413  
Table 4.6 Domestic prices of pe troleum products, January 2013 ........................................... 416  
Table 4.7 Statistics on air transp ort in N'Djamen a, 2006-2 012 ............................................. 421  
Table 4.8 Number of arrivals in hotels and similar establishments, by origin, 2006-2011 .......... 422  
Table 4.9 Telecommunications servic e indicators, 2000 an d 2005- 2011 ................................. 423  
Table 4.10 Authorization and declaration re gimes in the telecomm unications sector................. 424  
Table 4.11 Cost of approving te lecommunications equipment ............................................... 425  
Table 4.12 Capital and structure of the main banks in acti vity, 2006 an d 2011 ........................ 426  
Table 4.13 Microfinance sector statistics, 2006-2010 ........................................................... 427  
 
APPENDIX TABLES 
Table A1. 1 Structure of  exports, 2005-20 10 ..................................................................... 431  
Table A1. 2 Structure of  imports, 2005-20 10 ..................................................................... 432  
Table A1. 3 Export destinations, 2005-2010 ....................................................................... 433  
Table A1. 4 Origin of imports, 2005- 2010 .......................................................................... 434  
 
BOXES 
Box 3.1 The at destination mercha ndise verification  programme ........................................... 391  
 WT/TPR/S/285 • CHAD 
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  1   ECONOMIC ENVIRONMENT 
1.1  Main features 1.1.  With a land area of 1,284,000 km
2, Chad is one of Africa's largest countries, and the fact that 
it extends for about 1,700 km from north to south gives it a diversity of weather patterns that 
make it suitable for farming and livestock breeding, in three main agro-climatic zones. 
The principal features of the Sahara zone (accounting for about 47% of the country's land area and 2% of its total population) are low rainfall (50-200 mm) and the predominance of camel 
breeding. Crops such as vegetables, dates, and ce rtain varieties of millet are grown in dried-out 
river beds ( wadis ). The Sahelian band in the centre of the country covers about 28% of the land 
area and receives annual rainfall of between 400 and 800 mm, making it suitable for livestock farming and certain food crops (cereals, groundnuts). The relatively abundant rainfall 
(between 800 and 1,200 mm) in the Sudanian zone (in the south) allows farming to develop. 
Cotton and sugar cane are the main cash crops. 
1.2.  Chad is a landlocked country. It has borders to the north with Libya, to the east with Sudan, 
to the south with the Central African Republic and to the west with Cameroon, Niger and Nigeria 
(with which it shares Lake Chad). The nearest port, Douala, is 1,700 km from the capital, N'Djamena. The Chadian population was estimated at 11.5 million in 2011 (27.2% of the total 
population of the CEMAC zone) and is relatively young
1, with a large majority living in rural areas. 
Albeit with a slowing trend, demographic growth averages 2.6% per year2 and at this rate, 
the population can be expected to double before 2040. 
1.3.  Ranked among the least developed countries (LDCs), Chad's human development is 
considered low, according to the Human Development Index (HDI). Since its previous trade policy 
review (TPR), Chad's HDI has barely increased, and it is 183rd out of 187 countries.3 
Poverty has retreated slightly, but continues to afflict a large proportion of the population, 
weighing most heavily on rural areas. The proportion living below the national poverty line fell 
from 55% in 2003 to 46.7% in 2011.4 
1.4.  Despite a declining trend, economic activi ty continues to be dominated by the oil sector, 
which accounted for nearly 41% of GDP on averag e over the period 2007-2011. Agriculture, which 
is heavily dependent on weather vagaries, contributes just 10% of GDP, but remains a crucial source of employment, providing jobs for abou t 80% of the active population. Manufacturing 
makes only a minor contribution to GDP (less than 2%), while the services sector accounts 
for 30% of GDP on average. 
1.5.  Chad's total public debt, estimated at 24.3% of GDP in 2012, is largely external but its level 
is considered sustainable.
5 Oil revenues give the country a high capacity to meet its debt 
commitments: debt service absorbed roughly 5% of budgetary income in the period 2006-2012. 
Chad has not yet reached the completion point of the enhanced HIPC initiative.6 According to 
the International Monetary Fund (IMF), attaining that status would make the country eligible for 
a reduction of up to half of its external debt. 
1.6.  Chad faces numerous development co nstraints, both domestic and external. 
The encroachment of the desert and the drying u p  o f  L a k e  C h a d  e a c h  y e a r  p u t  a  s t r a i n  o n  
the resources needed to develop agro-pastoral and fishing activities; and weather hazards such as 
droughts and floods regulate agricultural production. Its status as a landlocked country with 
difficult access to the sea, restricts its participation in international trade and pushes up consumer prices. The country's main export product, oil, is transported to international markets by a pipeline 
over 1,000 km long, linking the oilfields in the Doba region to the port terminal at Kribi 
(in Cameroon). 
                                               
1 In 2011, 45.3% of the population was under 15 years of age (World Bank, 2012a). 
2 This rate includes refugee communities living in Chad. 
3 In 2005, Chad was 173rd (out of 177 countries) in the human development ranking. 
4 INSEED (2013). 
5 IMF (2011). 
6 Chad attained the HIPC initiative decision poin t in 2001. As of 31 December 2012, it was the only 
country still at the interim phase of that initiative IMF (2013). WT/TPR/S/285 • CHAD 
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  Table 1.1 Basic economic indicators, 2006-2012  
 2006 2007 2008 2009 a 2010 a 2011 a 2012b 
Nominal GDP (US$ million) 6.6 7.2 8.4 7.1 8.6 9.7 9.7 
Real GDP growth rate (%) 0.8 2.6 2.0 1.2 13.9 2.2 7.4 
Average inflation rate (%) 8.0 -9.0 10.3 10.0 -2.1 -4.9 10.2 
Sector share of GDP  (as a percentage of GDP) 
 Primary sector  .. 64.5 64.4 56.9 61.9 58.3 56 
 Farming  .. 9.5 8.9 9.8 14 7.7 8.2 
 Livestock breeding  .. 7.5 7.7 9.3 7.3 7.5 7.4 
 Forestry, fisheries and mining  .. 1.9 1.9 2.3 2 2.1 2.2 
 Petroleum .. 45.6 46 35.5 38.6 41.1 38.3 
Secondary sector  .. 7.0 7.0 8.4 7.7 8.7 9 
 Manufacturing  .. 1.4 1.4 1.5 1.3 1.8 1.9 
 Cotton lint .. 0.5 0.4 0.2 0.1 0.3 0.2 
 Handicrafts .. 3.5 3.5 4.3 3.6 3.6 3.7 
 Construction and public works  .. 1.7 1.6 2 2.3 2.7 2.8 
 Water and electricity .. 0.4 0.4 0.6 0.5 0.6 0.6 
 Services sector  .. 26.2 26.4 32 27.7 30.3 32.4 
 Transport and communications .. 1.6 1.6 1.8 1.6 1.9 1.9 
 Trade .. 10.5 10.6 12.6 11.6 11.3 11.5 
 Public administration  .. 9.4 9.5 12 10.1 12.3 13.8 
 Other .. 4.7 4.7 5.6 4.5 4.9 5.2 
Indirect taxes  .. 2.3 2.2 2.7 2.6 2.7 2.6 
Uses of GDP  (as a percentage of GDP) 
Final consumption 73.8 69.1 66.6 72.0 66.2 67.0 77.8 
 Final public consumption 4.7 6.8 7.5 9.3 7.6 8.2 7.4 
 Final private consumption  69.0 62.3 59.2 62.7 58.6 58.8 70.5 
Gross investment  25.8 25.7 27.1 36.9 42.0 36.6 37.1 
 Gross fixed capital formation 25.5 25.4 26.7 36.5 41.8 36.4 36.8 
 Change in inventories 0.3 0.3 0.4 0.4 0.2 0.2 0.2 
Net exports (Goods and non-factor 
services) 0.4 5.1 6.3 -8.9 -8.3 -3.7 -14.9 
Public finance (as a percentage of GDP) 
Revenue and grants 16.7 21.7 26.4 16.1 23.8 28.0 26.6 
 Total revenue 16.7 21.7 26.4 16.1 23.8 28.0 26.6 
 Oil revenue 12.1 16.3 20.8 8.5 15.2 21.0 16.9 
 Non-oil revenue 4.5 5.4 5.6 7.7 8.6 7.0 9.7 
Total expenditure 18.4 20.5 23.6 29.5 28.8 30.0 31.7 
 Current expenditure 11.1 13.5 15.5 19.0 16.4 16.2 17.3 
 Salaries and wages  2.6 3.2 3.3 4.0 3.2 4.0 4.5 
 Material and equipment 3.2 1.8 1.7 2.0 2.0 1.9 1.2 
 Interest 0.4 0.4 0.3 0.6 0.4 0.7 0.6 
 Transfers and subsidies 3.8 6.2 7.7 9.0 8.3 7.4 9.3 
 Military expenditure 1.0 1.8 2.5 3.3 2.5 2.3 1.7 
 Investment expenditure 7.3 7.0 8.1 10.5 12.4 13.8 14.4 
Overall balance (commitments 
basis, excluding grants) -1.7 1.2 2.7 -13.3 -5.0 -2.0 -5.1 
Overall balance (accruals basis, 
including grants) 0.5 3.0 4.5 -10.8 -2.9 0.8 0.0 
External sector        
Total external debt (as a 
percentage of GDP) 26.5  26.5 23.5 27.3 23.2 23.9 24.3 
Debt servicing (% of budgetary 
income) 4.0  6.3 6.4 7.1 3.8 3.9 6.2 
.. Not available. 
a Estimates. 
b Forecasts. 
Source: Data provided by the national authorities,  and the Bank of Central African States (BEAC). 
1.7.  Recurrent episodes of socio-politico-military conflict have created a situation of latent 
insecurity that does little to encourage economic activity. Conflicts in neighbouring countries 
(Libya, Nigeria, Sudan and the Central African Republic) are also potential sources of instability. 
Nonetheless, the security situation seems to have improved since 2010, following the signing WT/TPR/S/285 • CHAD 
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  of a peace agreement with Sudan7 and the establishment of a joint force to secure the border 
between the two countries. 
1.8.  Private sector development continues to  be hindered by many other factors such 
as corruption, the poorly developed road and transport infrastructure, recurrent energy crises, 
and the heavy tax burden imposed on businesses. The Global Competitiveness Report  published 
by the World Economic Forum8 ranks Chad 140th out of 144 countries for the supply of electric 
power. Corporate tax rates are among the highest in the subregion and a large proportion 
of economic agents operate informally. 
1.2  Recent economic developments 1.9.  Following two straight years of recession, the Chadian economy recovered in 2010, to post 
real GDP growth of 13.9% - thanks to a good agricu ltural harvest and an upturn in the price of oil, 
supported by an appreciation of the United States  dollar against the CFA franc (CFAF). The growth 
rate slackened in 2011 owing to the drought, but th e coming on stream of a number of industrial 
projects in 2012, which was also the first full year of production at the oil refinery, 
caused economic activity to recove r with growth of 7.4% that year. 
1.10.  Prices generally fluctuated widely over the same period. Following steep rises in 2008 
and 2009 driven by the surge in food prices, they  fell by 2.1% in 2010 and 4.9% in 2011. This was 
in part the result of the exemptions from cert ain duties and taxes charged on products for mass 
consumption and of government subsidies on th e price of oil products. The drought in 2011 
pushed the following year's inflation rate up to 10.2%, well above the 3% threshold set in the multilateral surveillance framework. 
1.11.  On the public finance front, the robust performance of oil prices helped the Government 
implement an expansionary budgeta ry policy aimed at providing the country with road, education, 
and health infrastructures. Boosted by a large inflow of oil revenues, public sector income 
stabilized at 28% of GDP in 2011 (compared to 16.1% in 2009). This underpinned 
the Government's expansionary budgetary polic y aimed at providing the country with road, 
education and health infrastructures [sic: this is basically repeated]. As a result, total expenditure 
represented 30% of GDP, and the 2011 budget deficit came in at 2%, before growing 
to 5.1% of GDP in 2012, mainly owing to transfers and subsidies. 
Table 1.2 Balance of payments, 2006-2012 
(US$ million) 
 2006 2007 2008 2009a 2010a 2011a 2012b 
Current account balance 374.4 812.7 746.5 -289.9 -430.1 -102.1 -917.9 
   External trade balance  2,002.5 1,881.6 2,144.2 791.6 1,149.5 1,611.1 753.1 
      Exports, f.o.b. 3,352.0 3,627.2 4,168.3 2,794.9 3,537.6 4,306.3 4,049.7 
         Cotton lint  84.4 64.7 52.0 28.4 31.5 70.4 60.1 
         Livestock  227.5 282.9 273.1 246.9 207.2 245.0 274.6 
         Oil 2,969.3 3,202.6 3,737.1 2,442.7 3,233.9 3,891.1 3,618.0 
      Imports, f.o.b. -1,349.5 -1,745.6 -2,024.1 -2,003.2 -2,388.2 -2,695.5 -3,296.6 
         Non-oil sector -312.2 -1,090.6 -1,079.0 -936.9 -936.2 -993.7 -1,266.9 
         Oil sector -750.0 -298.0 -504.9 -533.5 -795.7 -975.9 -1,180.3 
         Public sector -90.9 -166.3 -184.0 -226.2 -326.1 -377.0 -412.1 
   Services balance (non-factor)  -1,975.7 -1,512.3 -1,616.3 -1,424.0 -1,863.4 -1,966.7 -2,205.4 
      Transport and insurance .. -457.8 -553.4 -536.2 -696.4 -784.3 -966.1 
      Public administration .. 72.2 115.9 313.4 244.7 261.9 213.1 
      Travel .. -166.3 -332.5 -335.0 -500.9 -543.8 -573.7 
      Other business services .. -490.5 -468.3 -456.8 -526.0 -446.9 -459.7 
      Other transport and insurance .. -469.7 -378.1 -409.2 -384.8 -453.7 -419.0 
   Balance of the income account  211.9 -158.2 -266.2 -385.7 -355.6 -314.1 -331.0 
      Wages and salaries .. 4.0 7.8 22.0 20.0 19.7 18.0 
      Investment income .. -162.1 -274.0 -407.7 -375.3 -333.8 -349.1 
                                               
7 Online information from the newspaper Le Monde . Viewed at: 
http://www.lemonde.fr/afrique/article/2010/02/09/le-Soudan-et-le-tchad-se-rapprochent-apres-sept-annees-d
e-conflit_1303014_3212.html [8 February 2013]. 
8 World Economic Forum (2012). WT/TPR/S/285 • CHAD 
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   2006 2007 2008 2009a 2010a 2011a 2012b 
   Balance of current transfers 135.7 601.5 484.8 727.9 639.4 567.7 865.6 
      Public 56.8 530.8 402.0 654.6 594.2 531.7 403.1 
      Private 78.9 70.7 82.6 73.3 45.2 36.0 462.5 
Capital and financial account -76.4 -475.5 3.1 -206.5 -61.4 307.3 1,233.2 
   Capital account 92.7 95.1 94.5 104.6 119.9 179.7 153.0 
   Financial account -169.1 -570.7 -91.3 -311.3 -181.3 127.8 1,080.3 
      Direct investment -279.3 -321.1 464.0 374.6 312.1 281.6 323.2 
      Portfolio investment 0.0 7.5 6.9 3.6 4.0 4.2 0.0 
      Other investment 110.2 -257.1 -562.3 -689.6 -497.5 -158.3 757.1 
Errors and omissions 96.2 -119.8 -274.7 -245.7 502.1 152.6 0.0 
Overall balance 394.2 217.6 475.0 -742.3 10.7 357.7 315.4 
Financing -394.2 -217.6 -475.0 742.3 -10.7 -357.7 -315.4 
   Changes in official reserves 
   (reduction +) -375.6 -259.4 -467.4 742.3 -10.7 -357.7 -315.6 
   Exceptional financing -18.7 41.7 -7.6 0.0 0.0 0.0 0.0 
   Residual  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
.. Not available. 
a Estimates. 
b Forecasts. 
Source: Data provided by the national authorities and the BEAC. 
1.3  Trends in trade and investment 
1.12.  Chad's exports are very poorly diversified, consisting mainly of crude oil exported almost 
exclusively to the United States (Charts 1.1 and 1.2). The other main export products are: 
l i v e s t o c k ,  e x p o r t e d  o n  t h e  h o o f  m a i n l y  t o  N i g e r i a ;  c o t t o n ,  e x p o r t e d  d i r e c t l y  t o  F r a n c e ;  
and gum Arabic, exported mainly to Europe. In the case of livestock, a large proportion of trade takes place outside official channels, and the real value of exports is probably underestimated by 
the official statistics. Imports have been dominated over the last few years by capital goods, in the 
context of work to develop the petroleum sector. Since its previous TPR, Chad's trade with China has surged in terms of both imports and exports. 
1.13.  With the exception of Cameroon (through which the vast majority of its merchandise trade 
transits) and, to some extent, the Central African Republic, Chad trades very little with 
other CEMAC countries. It imports manufactures from Cameroon and sugar from the Congo and, since 2011, it has exported diesel fuel to the no rth of Cameroon and the Central African Republic, 
and a number of food crops (groundnuts, onions, garlic) also to the Central African Republic. 
1.14.  Since 2009, Chad has received burgeoning foreign investment inflows, attracted by the oil 
sector (refinery) and industrial projects. Net foreign direct investment (FDI) accounted for 19.6% 
of GDP in 2011, well above the average for sub-Saharan Africa.
9 This high level of FDI 
is associated with the major works being undertaken as part of the Rônier oil project (Chapter 4), together with industrial construction (the reopening of a textile company, and the construction of a cement works, an agricultural equipment assembly plant, and a fruit juice manufacturing 
plant). This trend is set to continue if the investments visualized for the construction of a new 
airport and a railway line, as well as the industrial zone, come to fruition. 
1.15.  In the past, Chad has received large-scale investments from Libya, but these have 
since dwindled owing to the conflict in that co untry. For example, the takeover of the Société 
tchadienne de télécommunications by Libyan Green (LAP), which was agreed upon in 2010, had to be cancelled. 
 
                                               
9 World Bank (2012a). WT/TPR/S/285 • CHAD 
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  Chart 1.1 Direction of merchandise trade, 2005 and 2010 
2005 2010
(a)    Exports
Others
0.1Asia 
16.8Africa 
9.3United States
68.1EU (27)
5.6
China
16.0
Other Asian 
countries
0.8
Total:   US$2.2 billion Total:  US$3.1 billion
(b)    Imports
EU (27)
57.3
Africa
15.1
China  3.9Europe
58.1Other 
European 
countries
0.8
Asia
5.9
Other Asian 
countries
2.0Middle East
3.8Cameroon
6.8
Other African 
countries
8.3
United States
13.9 Other 
countries of 
the Americas
1.7CIS
1.5
EU (27)
27.4China
22.7 Asia
24.8
Europe
27.8Africa
36.9
Other 
European 
countries
0.4Other Asian 
countries
2.0CIS
0.9Cameroon
24.9Other African 
countries
12.1
United States
6.5Other 
countries of 
the Americas 
0.9Middle 
East
2.2
Total:   US$ 400 m illion Total:  US$1.4 billionPercentage
Others
0.1Asia 
15.8
Other Asian 
countries
7.0EU (27)
11.2 United States
72.7
Africa 
0.2
China
8.8
 
Source:  WTO calculations, based on data obtained  from Comtrade, mirror statistics, United Nations 
Statistics Division (UNSD) (SITC, Rev.3). WT/TPR/S/285 • CHAD 
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  Chart 1.2 Structure of merchandise trade, 2005 and 2010 
2005 2010
(a)    Exports
Agriculture  
3.9Fuels
88.5Manufactures 
7.1
Others
0.5
Total: US$2.2 billion Total: US$3.1 billion
(b)    Imports
Agriculture  
13.3
Other extractive 
industries
0.5Manufactures
80.5Transport 
equipment
10.5
Others
1.6Electrical machinery
10.2
Other 
manufactures 
products
7.6
Non-electrical 
machinery
26.6
Fuels
4.1
Iron and steel
4.8Chemical 
products
15.5Other semi-finished 
products
5.3Manufactured 
products
63.6 Agriculture  
11.4Transport 
equipment
6.0 Other 
manufactures 
articles
7.6
Others
2.5Non-electrical 
machinery
21.2Electrical 
machinery
9.5
Fuels
22.0
Other extractive 
industries
0.4Iron and steel
6.3Chemical 
products
7.3Other semi-finished 
products
5.7
Total:  US$400 million Total:  US$1.4 billionPercentage
Agriculture  4.7
Fuels
92.9Others
0.2Manufactures 
2.2
 
 
Source: WTO calculations, based on data obtained fro m Comtrade, mirror statistics, UNSD (SITC, Rev.3). 
1.16.  The creation of a single window for ente rprise creation and the implementation of the 
Investment Charter are among recent initiatives aimed at attracting private investment. These measures have been of limited effectiven ess, however, owing to other more exacting 
constraints such as corruption, the heavy tax burden, and the problematic supply 
of electric power. WT/TPR/S/285 • CHAD 
- 379 - 
  1.4  Outlook 
1.17.  The outlook for the Chadian economy depends on the trend in oil prices and weather 
conditions. Output from the country's leading oil project, at Doba, has been declining; the high price of oil over the last few years has justified additional investment in drilling, but has not 
managed to reverse the downward trend. The IMF is  forecasting that economic activity will grow 
moderately by 3.2% in 2013, driven by a sustained level of public investment. The coming on-line of the new electric power plant at Farcha, and the completion of work to construct 
the infrastructure needed to transport part of th e energy produced by the Djermaya refinery to 
the capital, should make electricity more widely available and promote economic activity, particularly among small and medium-sized enterprises (SMEs). 
1.18.  The Government's vision for 2025 is to turn Chad into an emerging economy "driven 
by diversified and sustainable growth sources, creating value-added and jobs, and making sure 
that every Chadian citizen has appropriate access to core social services, decent housing, and suitable opportunities for skill training". The actions to be undertaken are defined 
in the 2013-2015 National Development Plan
10; but their implementation will depend on oil 
revenues and non-concessional loans, among other factors. 
 
                                               
10 Republic of Chad (2013a). WT/TPR/S/285 • CHAD 
- 380 - 
  2  TRADE AND INVESTMENT REGIMES 
2.1  Overview 2.1.  The Constitution currently in force was adopted by referendum in March 1996. Its most 
recent amendment, in 2005, repealed a provisio n limiting the number of presidential terms, 
thereby allowing the President to be re-elected indefinitely.
11 Another review is currently under 
way, and a draft law was adopted by the National  Assembly in February 2013. The amendments 
introduced will abolish permanent tenure for Supreme Court judges12 and will enable the President 
of the Republic to engage in certain activities, specifically within political parties. 
2.2.  Under the Constitution, the President of the Republic is the Head of State and supreme 
commander of the armed forces. He oversees compliance with the Constitution and ensures international treaties and agreements are fulfilled. He is elected by direct universal suffrage for 
a five-year term. He appoints the Prime Minister and other members of the Government proposed 
by the latter, and he defines their responsibili ties and powers by decree. The President may 
dismiss the Government, either on his own initiative or when the Prime Minister tenders 
his Government's resignation, or following a vote of no-confidence or the passing of a censure 
motion by a majority of the National Assemb ly. The current President has been in power 
since 2 December 1990. The latest presidential election was held in April 2011 but was boycotted 
by several opposition political parties.
13 
2.3.  Legislative power is exercised by the National Assembly, which consists of 188 members 
elected by direct universal suffrage for a four-year renewable term. The most recent legislative elections were held in February 2011. 
2.4.  Judicial power is vested in the Supreme Court, the Appeals Courts, tribunals and magistrates 
courts. The Supreme Court is the highest authority for judicial, administrative and public accounts 
matters, and has been operating since October 2000. Its members are chosen by the President of 
the Republic and the President of the Nation al Assembly. Magistrates are appointed by 
the Supreme Council of Justice. The Constitution guarantees the independence of the judiciary 
from the legislative and executive branches. 
2.5.  According to its Constitution, Chad is organized into decentralized territorial units (regions, 
departments, communes, and rural communities), under State tutelage but enjoying administrative, financial, capital and economic autonomy. The State is represented in the territorial units by administrative units (governorships, prefectures, and sub-prefectures).
14 
The administrative units are underpinned by traditional chiefdoms, organized on a customary 
law basis. These represent the first recourse for settling inter-community conflicts and property disputes. 
2.6.  Although commercial tribunals were created in 1998
15, they have only been operating 
since 2004.16 Disputes between economic agents are generally settled out of court 
through arbitration provided by the Chamber of Commerce, Industry, Agriculture, Mining 
and Crafts (CCIAMA). The Minist ry responsible for trade has had to intervene in a number 
of out-of-court settlements. 
2.7.  The design, implementation and evaluati on of trade policy is the responsibility 
of the Ministry of Trade and Industry, which also serves as the WTO focal point. The other entities 
involved in developing and implementing that policy include the Office of the President 
of the Republic, the Office of the Prime Minist er, and the Ministries of Finance, and Budget, 
                                               
11 Constitution or 31 March 1996 (amended by Constitutional Law No. 08/PR/2005 of 15 July 2005). 
Viewed at: http://www.presidencetchad.org/Constitution_Tchad.pdf [28 February 2013]. 
12 Their term will be limited to  seven years, renewable once. 
13 Online information. Viewed at: http://www.rfi.fr/afrique/20110323-tchad-trois-candidats-opposition- 
entendent-boycotter-election-presidentielle [12 February 2013]. 
14 Ordinance No. 003/PR/2008 of 20 February 2008 defining fundamental principles 
of the administrative organization of the territory of the Republic of Chad. 
15 Law No. 004/PR/98 of 28 May 1998 organizing the judiciary. 
16 Ordinance No. 009/PR/2004 of 23 August 2004 on the organization and functioning 
of the commercial courts. WT/TPR/S/285 • CHAD 
- 381 - 
  Planning, Economy and International Cooperation, Foreign Affairs and African Integration, 
Agriculture and Livestock, among others. The extent to which these ministerial departments are involved depends on the potential effect of specific trade policies on their spheres of competence. In particular, for measures with a fiscal effect, th e initiative rests with the Ministry of Finance. 
2.8.  According to the authorities, the following institutions are frequently consulted in the trade 
policy-making process: 
 The Chamber of Commerce, Industry, Agri culture, Mining and Crafts (CCIAMA); 
 the National Investment and Export Agency (ANIE); 
 the Chadian National Employ ers' Council (CNPT); and 
 the Consumer Protection Association (ADC). 
2.9.  Legislative initiative rests with the Go vernment and the National Assembly. Draft laws 
emanating from the National Assembly are review ed in the Council of Ministers before being 
submitted to the National Assembly for adoption . Once adopted, the President of the Republic 
must enact them within 15 days of their transmission to the Government. In theory, laws are 
published in the Official Journal of the Republic, but in practice this journal is no longer being 
published. In fact, laws are generally published in Tchad info , a daily bulletin edited 
by the
 Chadian press agency (ATP), and in certain private media. 
2.10.  International treaties and agreements are negotiated and ratified by the President 
of the Republic. Once published, they take preced ence over domestic laws, subject in each case 
to their application by the other party. After the Constitution, domestic legal instruments are ranked in the following order of preference: la ws, ordinances, decrees, ministerial orders and 
decisions. Certain instruments, such as trade treaties and treaties or agreements concerning 
international organizations and the exploitation of natural resources can only be approved and 
ratified once they have been auth orized by the National Assembly. 
2.11.   Rules concerning the nationalization or privatization of enterprises are legally defined. 
The law also specifies fundamental principles relating, in particular, to the property regime, real estate and business rights, environmental protection and the conservation of natural 
resources, land tenure; borrowing, saving, an d credit; the transport and telecommunications 
regime; farming, livestock breeding, fisheries, and fauna, water and forests. The main legal instruments governing trade and investment are set out in Table 2.1. 
Table 2.1 Main trade and investment laws currently in force, January 2013
 
Scope Legal text 
WTO agreements Law No. 12/PR/96 of 26 March 1996, ratifying the Marrakesh Agreement Establishing 
the World Trade Organization (WTO) 
Foreign trade Decree No. 452/PR/85, repealing Decree No. 282/PR/85 defining import procedures 
Order No. 054/MCPI/DG/DC/95, abolishing import licences and establishing the 
negative list of products subject to special import authorization 
Decree No. 451/PR/95 of 29 July 1995 repealing Decree No. 113/ET/65 
of 11 July 1965 regulating the exportation and re-exportation of products, 
merchandise, foodstuff and items of all kinds from Chad 
Customs legislation CEMAC Customs Code 
Order No. 110/MFB/SE/SG/DGDDI/2009 (customs valuation) 
Merchandise 
inspection Decree No. 521/PR/MEF/2003 (preshipment inspection) 
Decree No. 1587/PR/MFB/2011 (at-destination verification)  
Business taxation General Tax Code, 2006 Edition 
Finance Law 
Procedures and 
regulations for the 
establishment 
of private 
commercial 
enterprises Uniform acts of the Organization for th e Harmonization of African Business Law 
(OHADA) 
Law No. 016/PR/96 of 13 April 1996, ratifying the Treaty on Harmonization of 
Business Law in Africa 
Law No. 10/PR/2009 rectifying Ordinance No. 004/PR/2009 (revised OHADA Treaty) WT/TPR/S/285 • CHAD 
- 382 - 
  Scope Legal text 
Investment Law No. 006/PR/2008, instituting the In vestment Charter of the Republic of Chad 
Government 
procurement Decree No. 503/PR/PM/SGG of 25 December 2003 establishing 
the National Government Procurement Code 
Mining Code Law No. 011/PR/1995 of 20 June 1995 establishing the Mining Code 
Oil Law No. 006/PR/2007 of 2 May 2007 on hydrocarbons 
Ordinance No. 006/PR/12 of 7 February 2012, on the exportation and importation 
of petroleum products 
Water code Law No. 016/PR/99 of 18 August 1999 enacting the Water Code 
Electricity Law No. 014/PR/99, on the generation, transport and distribution of electricity 
Pharmaceuticals Law No. 024/PR/2000 of 24 November 2000, the Pharmacy Law 
Postal services Law No. 008/PR/98 of 17 August 1998, on th e organization of the Public Postal 
Service 
Telecommunications Law No. 009/PR/98 on telecommunications (currently under review) 
Merchandise 
transport by road  OHADA, Uniform Act of 1 January 2003 on contracts for the transport of merchandise 
by road 
Civil aviation Law No. 032/PR/2000 of 17 May 2000, enacting the Civil Aviation Code 
Insurance CIMA Insurance Code 
Domestic trade, 
competition Law No. 30 of 28 December 1968 on pricing, economic intervention 
and the repression of economic offences; and Law No. 008/PR/2001 amending it (liberalization of hydrocarbons prices) 
Forestry, fauna, 
fisheries Law No. 014/PR/2008 of 10 June 2008 on the forestry, fauna and fishery regime. 
Land tenure Laws Nos. 23, 24 and 25 of 22 July 1967, dealing, respectively, with the status of 
public property, the real estate prop erty regime and cu stomary rights; and 
limitations on property rights 
Tourism Law No. 019/PR/2002 of 2 December 2002, regulating tourism establishments 
Law No. 012/PR/2007 of 15 June 2007, creating the Chadian Tourism Office 
Intellectual property  Revised Bangui Accords (1999) 
Law No. 005/PR/2003 of 2 May 2003, on the protection of copyright, neighbouring 
rights, and rights in respect of expressions of folklore  
Sanitary and 
phytosanitary 
measures Law No. 14/PR/95 of 13 July 1995 on plant protection 
Order No. 0059/MSP/DG/187/DACS/96, regulating the importation, distribution 
anduse  of pesticides of public health use 
Law No. 009/PR/2004 of 19 May 2004, organizing the sanitary inspectorate 
and the collective prevention of known contagious diseases of animals on the 
territory of the Republic of Chad 
Commercial courts Law No. 004/PR/98 of 28 May 1998, on the organization of the judiciary 
Ordinance No. 009/PR/2004 of 23 August 2004, on the organization and functioning 
of the commercial courts, and Law No. 014/PR/2004 ratifying it 
Source:  Information provided by the Chadian authorities. 
2.12.  The overall legal environment for business is , in principle, governed by the various uniform 
acts of OHADA (common report, Chapter 2).17 Nonetheless, domestic laws have not yet been fully 
adjusted to these provisions. 
2.13.  Corruption remains a scourge, despite several actions undertaken by Chad since its 
previous TPR. According to the ranking published by Transparency International, Chad is among 
the worst-rated countries in terms of corruption perception - ranked 165th out of 176 countries 
in 2012 (compared to 172nd out of 179 in 2007).18 Steps taken by the Government mainly aim 
to improve public sector governance. These includ e: the creation in 2004 of a Ministry responsible 
for State control and ethics; the creation of a national financial investigation agency; the adoption 
in 2012 of a national good governance strategy, and an anticorruption law19; and the organization 
                                               
17 Chad ratified the OHADA Treaty in 1996. 
18 Online information from Transparency International. Viewed at: http://cpi.transparency.org/cpi2012 
[27 February 2013]. 
19 Ordinance No. 011/PR/2012 of 15 June 2012, establishing the regime for the prevention and 
suppression of corruption and similar or re lated offences in the Republic of Chad. WT/TPR/S/285 • CHAD 
- 383 - 
  in 2012 of a number of missions to oversee the management of resources assigned 
to government agencies.20 
2.14.  Since August 2007, Chad has been seeking to  join the Extractive Industries Transparency 
Initiative (EITI). Nonetheless, it has not yet satisfied all requirements and currently 
has "candidate country" status. An independent office collects and publishes the tax revenues 
which the Government declares it has received from enterprises in the sector, as well as the payments which these enterprises declare have been transferred to the State. The reports 
published thus far cover revenues for the years 2007-2009.
21 
2.2  Trade policy objectives 2.15.  Chad's trade policy is framed by commitments made at the multilateral and regional levels 
(common report, Chapter 2) and by national legislation. The Government's overall objective in this 
domain is to promote trade to sustain growth, and thus contribute to the fight against poverty.
22 
Its actions aim specifically to sustain competitive sectors and create a suitable framework for the development of domestic and international trade. For that purpose, the Government is 
targeting the following: 
 Development of specific sectors, such as gum arabic, shea butter (karité), beef cattle; 
 capacity building in trade support structures (ANIE, the Standardization and Metrology 
Agency, the Centre for Foodstuff Quality Control); 
 promotion of the marketing of local products (construction/refurbishment of warehouses, 
dissemination of storage conservation and packaging techniques, support for transport services in rural areas); and 
 capacity building for the formulation and implementation of trade policies, 
and for trade negotiations. 
2.16.  The private sector has been identified by the Government as "the essential source 
of productive employment and growth", and its development is one of the priorities defined 
in the 2013-2015 National Development Plan.
23 Actions envisaged in this domain involve 
the promotion of SMEs, tourism and handicrafts; better exploitation of the country's agro-pastoral 
and mining potential with a view to developing the industrial fabric; and strengthening 
of the financial sector. 
2.17.  In terms of subregional and continent-wide cooperation, Chad has set itself the objectives 
of deepening its economic and trading relations with other countries, and of helping to strengthen 
subregional institutions (CEMAC and the Economic Community of Central African States - ECCAS, 
in particular). The strategies deployed include ex ploiting agro-pastoral export potential; supporting 
subregional initiatives for the free movement of persons, goods and capital; and the incorporation 
of community provisions in the national development programme. 
2.3  Trade agreements and arrangements 2.3.1  World Trade Organization 
2.18.  Chad is a founding member of the WTO and has least developed country (LDC) status. 
It has been the subject of "administrative arrangements" relating to sanctions against countries that are in arrears with their contributions, and this limited its participation in WTO decision-making mechanisms for a time.
24 Chad has a Permanent Mission in Geneva, 
which monitors issues reviewed at the WTO, the United Nations Conference on Trade and 
Development (UNCTAD), the International Chamber of Commerce (ICC) and the World Intellectual Property Organization (WIPO). 
                                               
20 According to the authorities, this mission has ma de it possible to recover over CFAF 22 billion. 
21 Online information from ITIE Tchad. Viewed at: http://www.itie-tchad.org [27 February 2013]. 
22 Republic of Chad (2013a). 
23 Republic of Chad (2013a). 
24 In 2010, Chad accepted a plan to reschedule its arrears over several years (WTO (2011)). WT/TPR/S/285 • CHAD 
- 384 - 
  2.19.  Chad participates in activities organized by the WTO, albeit on an irregular basis. 
Between 2007 and 2012, it participated in 58 trade-related technical assistance activities (covering all categories), 38 of which were organized by the WTO.
25 Its most active participation 
occurred in 2010 (22 activities), when it participated in 13 trade-related training activities 
and nine trade facilitation activities. According to the authorities, Chad's low participation rate 
could reflect ignorance of the activities in question. In 2002, the authorities set up a committee to monitor implementation of the WTO Agreements and ongoing trade negotiations, but this is not 
currently operational. 
2.20.  Chad is one of the four African countrie s sponsoring the Sectoral Initiative in Favour 
of Cotton. Although it has not been directly involved in any trade dispute settlement procedure, either as complainant or defendant, it was a third party in the dispute concerning subsidies 
on upland cotton in the United States.
26 
2.21.  As an LDC, Chad has been participating since 2004 in the Integrated Framework (IF) 
programme and, automatically, in the Enhanced Integrated Framework (EIF) since this was 
launched. It validated its first diagnostic trade integration study (DTIS) in 2005. The matrix 
of actions arising from this study was included in  the country's Second Poverty Reduction Strategy 
Paper (PRSP II, 2008-2010).27 Nonetheless, the tardy installation (in 2010) of the national 
implementation unit delayed implementation of the country's matrix of actions. The DTIS 
is currently being reviewed. Between 2009 and 2010, Chad benefited from Window II financing, which enabled it to organize workshops and finance several projects to promote the leather industry. A number of Category 2 projects in relation to gum arabic, shea butter ( karité ) 
and spirulina are currently being prepared. 
2.22.  Chad is fulfilling few of its notification obligations (common report, Chapter 2). According to 
the authorities, this situation is partly attributable to the complexity of the notification process 
and lack of human resources. Training on no tifications was organized by the International 
Organization of La Francophonie (OIF) in 2008. According to the authorities, steps are being taken to set up a sustainable notifications mechanism. Technical assistance is needed in the 
following areas: 
 implementation of WTO Agreements, particularly in relation to customs valuation 
and notifications; 
 implementation of a complete sanitary and phytosanitary control system; and 
 strengthening of the WTO Reference Centre. 
2.3.2  Relations with the European Union 2.23.  Chad benefits from trade preferences under the European Union's "Everything but Arms" 
programme, which allows it to export all products except weapons to the EU, duty free and 
quota free. Chad is participating in the negotiat ions on an economic partnership agreement (EPA) 
between the African, Caribbean and Pacific (ACP) countries and the European Union, as a member 
of CEMAC, expanded to include São Tomé and Prin cipe and the Democratic Republic of the Congo 
(common report, Chapter 2). A committee was set up in 2002 to monitor these negotiations. 
2.3.3  Relations with the United States 2.24.  Chad is eligible for the African Growth and Opportunity Act (AGOA). A committee to oversee 
the use of the provisions of this law was set up in 2002, but is not operating. Chad receives 
technical assistance from the United States under this framework, particularly in relation to the packaging and conservation of agricultural products. An AGOA resource centre was set up 
in 2004. 
                                               
25 Global trade-related technical assi stance database (GTAD). Viewed at: 
http://gtad.wto.org/index.as px?lg=fr [27 February 2013]. 
26 Online information from the WTO. Viewed at: 
http://www.wto.org/french/tratop_f/dispu_f/cases_f/ds267_f.htm. 
27 Republic of Chad (2008). WT/TPR/S/285 • CHAD 
- 385 - 
  2.25.  Between 2006 and 2011, exports from Chad to the United States grew from US$1.9 billion 
to US$3.2 billion (common report, Chapter 2). The bulk of these exports were under the AGOA regime - 80.4% of Chad's total exports to the United States in 2006 and 93.8% in 2011, 
nearly all of which involved crude oil. 
2.26.  Chad is eligible for the Third-Country Fabric provision. Local products (t-shirts) do not 
appear to satisfy the necessary quality requirements, however. 
2.3.4  Other agreements 
2.27.  Chad receives trade preferences from other developed countries under their 
national preference schemes. It is also a memb er of the following regional and subregional 
organizations: African Union (and the Economic Commission for Africa), ECCAS, Community of Sahelian-Saharan States, and CEMAC (common report, Chapter 2). Although it has not signed 
the Agreement on the Global System of Trade Preferences among Developing Countries (GSTP), 
as an LDC it is granted preferences by certain signatories.
28 
2.4  Investment regime 
2.28.  Chad has one of the least attractive business environments in the world. In 2012, it was 
ranked second to last under the "Ease of doing business" criterion of the World Bank's 2013 Doing Business Report . It is also ranked 139
th out of 144 countries in the Global Competitiveness 
Index measured by the World Economic Forum (WEF).29 The survey of perceptions conducted 
by the WEF with business leaders identifies difficult access to financing, corruption, high taxation, and infrastructure weaknesses as the most problematic constraints faced by private enterprise. 
2.29.  Chad considers free enterprise and private investment to be key levers of its development 
policy, and encourages them in its legislative and institutional arrangements. In principle, 
private investments are unregulated, apart from specific provisions on public health, social protection, the environment and respect for public order. 
2.30.  Chad's Investment Charter is the main regulatory framework for investment. The most 
recent review was conducted in 2008, and consists of a transposition of community provisions on the subject (common report, Chapter 2).
30 The Charter is applicable to investments in the 
following sectors: processing or packaging of industrial products; preparation or processing 
of products of plant, animal or fisheries origin; geological, mining, and oil research and exploration; exploitation of mineral substances, their processing and related activities; production and distribution of water and electricit y, and the exploitation of other energy sources; 
manufacture and assembly of articles or objects for mass consumption; tourism and hotel 
services; construction, public works and transport industries; maintenance of industrial equipment; and information and communications technologies. 
2.31.  The Charter provides guarantees, such as non-discrimination, free movement, and free 
transfer of earnings, and both customs and tax advantages to newly-created enterprises 
(Chapter 3). Implementation of the Charter is the task of the National Investment 
Commission (CNI), which is operational and has issued several framework agreements. 
2.32.  The procedures for setting up a business were reviewed in 2010
31 and involve the 
following stages: registration with a notary of  the deeds creating the enterprise; enrolment 
in the Commerce and Personal Property Credit Re gister; enrolment in the employers' register 
at the National Office of Employment Promotion and with the National Social Security Fund; 
enrolment in the statistical code; declaration of existence, obtaining of a tax identification number and payment for its registration; and an administrative declaration of the creation of the business. 
                                               
28 Online information from the United Nations Conference on Trade and Development (UNCTAD). 
Viewed at: http://unctad.org/fr/pages/PressReleaseArchive.aspx?ReferenceDocId=4905. 
29 World Economic Forum (2012). 
30 Law No. 006/PR/2008 of 3 January 2008 creating the Investment Charter in the Republic of Chad. 
31 Decree No. 743/PR/MCI/2010 of 6 September 2010 establishing administrative procedures 
for settingup a business. WT/TPR/S/285 • CHAD 
- 386 - 
  Regulated activities also require a licence or authorization to be obtained from the 
relevant ministry.32 
2.33.  Since 2008, the ANIE33 has coordinated the execution of most of these formalities through 
a single-window facility and a business formalities centre (CFE).34 Apart from notary deeds 
and licensing and authorization procedures, all other formalities involved in setting up a business 
can be completed through this mechanism. Once the dossier has been received, the CFE carries out a check and gives the applicant a deposit receipt (or a justified notice in the event 
of rejection). The dossier is then transmitted to the single-window facility for processing by each 
of the departments concerned. In principle, the set of formalities has to be completed within 72 hours or less, but this period is not respected. 
2.34.  The cost of these procedures depends on the legal format of the business in 
question (Table 2.2). Between November 2001 and August 2012, the ANIE 
registered 1,742 business start-up dossiers.
35 
Table 2.2 Business start-up expenses 
(in CFAF) 
Legal format Registration 
duties Public 
treasury CFE ANIE Court 
fee Stamp 
duties 
Joint stock corporation 3% of capital 35,000 15,000 52,000 8,000 3,000 
Limited liability company, 
sleeping partnerships and 
general partnerships 3% of capital 20,000 10,000 42,000 8,000 3,000 
Sole trader Not applicable 15,000 5,000 15,000 3,000 3,000 
Economic interest group 3% of capital 30,000 10,000 37,000 8,000 3,000 
Multinational branch 3% of capital 60,000 20,000 242,000 8,000 3,000 
Source: ANIE (2012). 
2.35.  On tax issues, corporations are assigned to one of three taxation regimes: real, simplified, 
and flat-rate ( impôt général libératoire  - IGL), depending on their annual pre-tax turnover 
and type of activity.36 Businesses subject to the real regime have a turnover of more 
than CFAF 200 million in product sales and CFAF 60 million in services. For the simplified regime, the turnover must be between CFAF 60 million and CFAF 200 million for product sales, 
and between CFAF 20 million and CFAF 60 million for services. Businesses with a turnover of less 
than CFAF 60 million in product sales and CFAF 10 million in services can opt for the IGL regime. 
2.36.  Depending on their legal format, enterprises may also be subject to corporate profits tax 
or personal income tax (Table 2.3); and there are also payroll levies and local taxes. The tax 
burden is one of the heaviest in the world. Acco rding to World Bank estimates, the total amount 
of taxes and obligatory charges levied on firms appears to have absorbed an average of 62.5% 
of commercial profits in 2008-2012.
37 Moreover, the substantial increase in the minimum 
guaranteed interprofessional wage (SMIG), which was raised by 135% in 2011, could further inflate business costs, particularly for SMEs. Currently the SMIG stands at CFAF 60,000 (about €91.50). 
                                               
32 The activities in question ar e health care, security, telecomm unications, financial and banking 
services, tourism, education and transport. 
33 Law No. 004/PR/2007 creating a National Investment and Export Agency. 
34 The enterprise formalitie s centre is the responsibility of the ANIE, but it is managed by the CCIAMA. 
35 Online information. Viewed at: 
http://anie-tchad.com/index.php/fr/statistiques/170-statistique-de-creation-d-entreprises-2011-2012 
[27 February 2013]. 
36 Law No. 024/PR/99 defining the 2000 General State Budget. 
37 World Bank (2012a). WT/TPR/S/285 • CHAD 
- 387 - 
  Table 2.3 Main taxes and charges app licable to businesses set up in Chad  
Type of tax, duty, or 
charge Scope of 
application Rate Tax base Exemptions 
Corporate profits tax 
Tax on company profits All companies Generally 40% Fiscal result First 5 years; 
negotiable rate 
General flat rate tax  Busi ness turnover Standard, based 
on locality and activity sector  Not applicable First 5 years 
Minimum flat rate tax All companies 
subject to 
company tax  1.5% (minimum 
CFAF 250,000 
per quarter) Sales turnover First 5 years 
Payroll taxes: 
Flat rate levy ( taxe 
forfaitaire ) All employers 7.5% Payroll A reduced rate can be 
negotiated 
Training levy All employers 1.2% Payroll Exemption in the 
framework of agreements, or if the company has an internal training policy 
Personal income taxes (progressive charges) 
Income from real estate (IRVM) Property values 20% Dividends, 
directors' fees  Exemption possible 
in the framework of establishment agreements 
Wages and benefits All wage earners 10.5% Wages  .. 
Industrial and commercial profits (BIC) Generally traders 20% Net trading 
profits .. 
Industrial and 
non-commercial 
profits (BNC) Liberal professions 20% Net trading 
profits .. 
Property income  15-20% Rents  .. 
Other levies 
Customs duties (DD) Imports 0%, 5%, 10%, 
20% and 30% c.i.f. value + 
value added tax (VAT) See Chapter 3 
Export duties Exports 2%, 2.5% 
and 8% f.o.b. value .. 
Advance import du ties Commercial 
imports 4% c.i.f. value + 
DD + excise 
duties See Chapter 3 
VAT Imports and local 
products 0 and 18% c.i.f. value + 
DD, or factory 
gate value See Chapter 3 
Excise duty (DA) Imports and local 
products 5%, 20% 
and 25% c.i.f. value + 
DD, or factory gate value See Chapter 3 
Flat rate levy charged 
on companies  12.5-25% Net amount 
of contract  
Local taxation 
Real estate levy 
on developed land  11-12% 
depending 
on location 50% of rental 
value First 5 years 
Real estate levy 
on undeveloped land  20-21% 
depending on location 80% of rental 
value First 5 years 
Registration   Provisional 
turnover First 5 years 
Tax on the rental value 
of business premises  15% Rental value 
of premises First 5 years 
Source:  Information provided by the Chadian authorities. WT/TPR/S/285 • CHAD 
- 388 - 
  2.37.  The ANIE is responsible for investment and export promotion and a strategy is currently 
being developed for this purpose. 
2.38.  Chad does not have any tax-free zones. Studies are reportedly under way for the creation 
of a dry dock at Nguéli (on the border with Cameroon). 
2.39.  Disputes between the State and an investor are conducted pursuant to national legal 
provisions, or in accordance with the many regional and international conventions and treaties on investment to which Chad is a signatory (common report, Chapter 2). 
2.40.  Chad has signed bilateral investment protection treaties with Switzerland (1967), 
Germany (1968) and Italy (1969).
38 Under a bilateral reciprocity agreement, French nationals have 
access to Chadian courts on an equal footing with nationals.39 The Cotonou Agreement contains 
provisions aimed at protecting investments by EU nationals in Chad. 
                                               
38 Bilateral investment agre ements have been signed with Benin,  Burkina Faso, China, Egypt, France, 
Guinea, Lebanon, Mali, Mauritius, Morocco and Qatar, bu t they have not yet been ratified. Online information 
from UNCTAD. Viewed at: http://www.unctadxi.org/templates/DocSearch.aspx?id=779 [27 February 2013]. 
39 Convention of 11 August 1960, between the Govern ment of the French Republic and the Government 
of the Republic of Chad. WT/TPR/S/285 • CHAD 
- 389 - 
  3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Measures directly affecting imports 3.1.1  Registration 3.1.  Although imports enter Chad duty free
40, the authorities can ban or restrict the importation 
of certain products for health or security reasons. No commercial activity is exclusively reserved 
for Chadian nationals. The import of goods for commercial purposes is reserved for economic agents holding commercial exporter/importer status. The formalities for obtaining this status are 
identical to those for setting up a business (Chapter  2). On completion of the procedure, the agent 
in question is provided by the ANIE with a certificate marked as "Import/Export". 
3.1.2  Procedures 3.2.  Pursuant to community legislation, a cust oms declaration can only be made by approved 
customs brokers, or by the owners of the g oods in question (common report, Chapter 3). 
A simplified declaration may be filed for goods whose taxable value does not exceed CFAF 30,000. 
3.3.  The applicable customs regimes are thos e defined in the CEMAC Customs Code. In Chad, 
the release-for-consumption regime is the most widely used. In this case, a separate declaration 
of the value of the goods must be submitted. Other customs regimes are seldom used. There are 
some warehouses used to hold stocks of chemical products awaiting resale to the Government. 
The temporary admission regime is only used in connection with oil or mining research 
and prospecting. In the case of inward processi ng, the national cigarette company, Manufacture 
des cigarettes  du Tchad, only carries out one or two operations per year. 
3.4.  Owing to the country's landlocked status, transit is rare. Goods in transit from Cameroon 
must be accompanied by the mandatory vehicle certificate ( lettre de voiture obligatoire  - LVO) 
and an international safe conduct document. The LVO costs CFAF 2,000 for vehicles registered in Cameroon and 7.5% of the freight value for vehi cles registered in Chad. An international safe 
conduct certificate, adopted to facilitate transit between Chad and Cameroon
41, is issued for each 
journey between the two countries; it is supposed to ease passage through border posts. 
3.5.  An online declaration service is available in four customs bureaus located in the capital 
(and its suburbs) and in the city of Moundou. These offices process about 80% of all customs 
declarations.42 Although the customs authorities use the computerized customs system 
programme ASYCUDA++43, few of its functions are operational, and system networking problems 
persist. At the present time, only the Nguéli customs bureau is connected to the General 
Directorate of Customs and the Ministry of Finance. 
3.6.  In January 2013, Chad introduced a cargo tracking note (BSC)44 scheme, which is operated 
by the Chad Freight Forwarders Council (CCT). It is mandatory for both imports and exports, 
and must be validated before any shipment, either by the CCT itself or by its agent. In the case 
of imports shipped without it, and shipments from places that do not have a CCT office, t h e  B S C  c a n  b e  i s s u e d  o n  a r r i v a l ,  a s  i t  i s  o n e  o f  t h e  d o c u m e n t s  r e q u i r e d  a t  t h e  t i m e  o f  t h e  
customs declaration. 
3.7.  The customs authorities systematically in spect all merchandise declared on importation. 
They are currently weighing up the benefits of introducing a system of selective checks, based on risk analysis. 
3.8.  Despite the importance of trade with Nigeria, particularly in livestock and livestock products, 
there is no official exchange bureau and trade is generally informal. 
                                               
40 Decree No. 452/PR/85 repealing Decree No. 282/PR/85 on import modalities. 
41 Decision No. 03/MTPTHU/SE/DG/DTS/2000 of 10 February 2000, creating a procedure to facilitate 
transport in transit between the Republic of Chad and the Republic of Cameroon. 
42 Chad has about 70 customs bureaus in its territory. 
43 Online information from ASYCUDA. Viewed at : http://www.asycuda.org/french/aboutas.asp. 
44 Decree No. 04/PR/PM/MTAC/2013 of 3 January 2013, establishing a cargo tracking note scheme 
in the Republic of Chad. WT/TPR/S/285 • CHAD 
- 390 - 
  3.1.3  Preshipment or at-destination inspection 
3.9.  The merchandise preshipment inspection programme has been in force in Chad since 2003. 
It aims to reduce the risks of fraud and guar antee customs revenues. Inspection is obligatory 
for imports from all countries, and is carried ou t by the company Bureau Veritas B.I.V.A.C. BV 
(BIVAC). It covers merchandise imports of an  f.o.b. value of CFAF 2 million (around €3,049)45 
or more, and aims to verify the value, quality, quantity of the goods in question. 
3.10.  To set the inspection procedure in motion, the importer must notify BIVAC of its intention to 
import (through the prior import declaration (DPI)), and present the supplier's pro forma invoice. 
It must then pay the inspection fee of 0.90% of the f.o.b. value of the goods, as specified in the supplier's pro forma invoice, subject to a minimum of CFAF 100,000
46 corresponding 
to an ad valorem  fee of 5% in the case of imports at the minimum threshold of CFAF 2 million. 
This standard amount is one of the highest in the subregion (common report, Chapter 3). Once the 
expenses have been paid, the importer returns to the inspection company with two copies of the pro forma invoice, the DPI and the ba nk receipt, for the purpose of issuing an 
intention-to-import document (IDI). The IDI is valid for six months and can be extended once for 
a further three months.
47 
3.11.  The inspection is performed in the supp lier's country by an agent of the inspection 
company. If the inspection is considered satisfactory, a verification certificate is issued 
to the importer and a copy sent on line to th e customs authorities. This certificate contains 
the indicative elements needed to identify and determine the customs value of the goods, 
but the customs authorities are not obliged to take this information into account. 
3.12.  Imports may not be subdivided for the purpose of avoiding preshipment inspection 
and an at-destination inspection can be called for if any suspicions are aroused. The fee for this 
verification is CFAF 24,000, payable by the operat or. If at the end of the inspection, the company 
concludes that the imports have been split up, a new inspection is ordered. This time, the fee 
is 0.90% of the overall value of the undivided merchandise, subject to a minimum of CFAF 100,000 - in other words the normal charges. 
3.13.  Apart from imports worth less than CFAF 2 million, the following goods are exempt 
from preshipment inspection
48: gold and precious stones, objets d'art; crude oil and refined 
products; explosives and pyrotechnical devices; arms and ammunition; live animals, fresh eggs; 
fruit and vegetables, recycled metals; newspapers and magazines; goods reimported 
by the Government; household removals and personal effects; non-commercial postal packages; 
commercial samples; gifts from foreign governments or international organizations to foundations, charitable bodies and recognized humanitaria n organizations; disaster aid from foreign 
governments, foreign organizations or private individuals; personal gifts sent by foreign residents 
to their relatives in Chad, for their personal us e; and supplies and gifts imported by diplomatic 
and consular missions and international organizations for their own requirements. 
3.14.  Since December 2011, an at-destination verification programme has been compulsory 
for imported goods that have not previously undergone preshipment inspection (Box 3.1). 
                                               
45 Decree No. 521/PR/MEF/2003 of 18 December 2003 establishing a mandatory verification programme 
for goods imported into the Republic of Chad. 
46 Annex B of the contract between the Republ ic of Chad and Bureau Veritas BIVAC BV, 
signed on17 November 2003. 
47 Online information from Bureau Veritas BIVAC BV. Viewed at: 
http://www.bureauveritas.com/wps/wcm/connect/8f6da3804b5d960997a49f8485dd6599/CHAD+rev+0.pdf?M
OD=AJPERES&CACHEID=8f6da3804b5d960997a49f8485dd6599 [27 February 2013]. 
48 Annex A to the merchandise preshipment verification contract signed on 17 November 2003 between 
Chad and Bureau Veritas BIVAC BV. WT/TPR/S/285 • CHAD 
- 391 - 
  Box 3.1 The at destination merchandise verification programme 
At-destination verification is compulsory for imported goods arriving at the land border without 
having undergone prior preshipment inspection. Inspection is conducted by the company Cotecna 
Inspection SA, under a seven-year contract. It usually covers the quality and quantity 
of the goods, the customs value, and the cust oms classification. Following the inspection, 
the company issues a verification certificate that is supposed to contain information enabling the 
customs authority to identify the goods and determ ine their value. As in the case for preshipment 
inspection, this information is only indicative and does not commit the customs authorities. 
The certificate is obligatory at the time of customs clearance. 
There is no exemption threshold. For goods with an f.o.b. value set by the inspection company 
at over CFAF 2 million, the inspection fee of 0.90%  of this amount is calculated in the same way 
as the preshipment inspection fee, except that the base of the calculation is the f.o.b. value 
established at the time of the verification. For merchandise worth less than CFAF 2 million, 
the fee is CFAF 24,000 per declaration. This in practice annuls the exemption from preshipment 
inspection agreed upon for import s of less than CFAF 2 million. 
The list of exempted products is shorter than in the case of preshipment inspection and includes 
the following: arms and ammunition, other than those for hunting and sporting activities; 
live animals, fresh eggs, fresh fr uit, vegetables and fruit products; gifts from foreign governments 
or international organizations to foundations, charitable bodies and recognized humanitarian 
organizations; disaster aid from foreign government s, foreign organizations or private individuals; 
personal gifts sent by foreign residents to their relatives in Chad, for their personal use; 
and supplies and gifts imported by diplomatic  and consular missions and international 
organizations for their own requirements.  
Sources:  Decree No. 1587/PR/MFB/2011 of 23 December 2011, establishing a mandatory 
verification programme for goods imported into the Republic of Chad; 
and Order No. 192/MFB/SE/SG/DGDD/2012 of 26 June 2012, defining the modalities 
for applying the at-destination verification programme for merchandise 
in the Republic of Chad.  
 
3.1.4  Customs valuation 
3.15.  Customs valuation methods, as defined in the Agreement on Implementation of Article VII 
of the GATT 1994, were made mandatory by an Order issued in 2009.49 The customs authorities 
have reported difficulties in implementing this  provision of the Agreement, and need training 
on the subject. 
3.16.  Minimum values are systematically applied to imports from Nigeria, 
the United Arab Emirates and Saudi Arabia, in respect of products for which undervaluation has frequently been detected. Market prices are generally used for cross-border trade in products 
such as rice, sugar and wheat flour. 
3.17.  Community provisions in relation to appeals are in principle applicable, 
and the Director-General of Customs is the first recourse in any dispute. Appeal to the joint commission, as a remedy for contesting a decision of the Director-General of Customs, is no longer 
available. In general, disputes have been few and far between: two to four cases each year, 
generally involving valuation issues. 
3.1.5  Rules of origin 
3.18.  In 1998, Chad notified the WTO that it had no national rules of origin for 
non-preferential purposes.
50 
                                               
49 Order No. 110/MFB/SE/SG/DGDDI/2009 of 29 June 2009, concerning the Agreement 
on Implementation of Article VII of the GATT 1994, in relation to customs valuation methods. 
50 WTO document G/RO/N/22 of 16 September 1998. WT/TPR/S/285 • CHAD 
- 392 - 
  3.19.  The rules of origin currently in force are those of the CEMAC (common report, Chapter 3). 
A certificate of origin is issued upon payment of CFAF 3 per barrel of crude oil, CFAF 2.5 per litre of fuel, and CFAF 1 per kilogram of cotton.  In principle, requests for authorization 
to enter the community's preferential schem e should be received and processed by 
a National Authorization Committee, but this is not yet in place. 
3.20.  Rules of origin are also in force in the co ntext of preferential or regional trade agreements. 
3.1.6  Customs levies 
3.1.6.1  Most-favoured-nation (MFN) tariff 
3.21.  Barring a few exceptions, Chad applies the CEMAC common external tariff (CET) 
(common report, Chapter 3). Exceptions are gene rally introduced (or suppressed) unilaterally, 
through the annual finance laws. The taxation of foreign trade, including VAT, generates a large 
proportion of the country's non-oil fiscal revenue (Table 3.1). 
3.22.  The tariff applied by Chad in 2012 contains exceptions to the CET for 45 tariff lines 
(common report, Chapter 3). For 26 lines, tariffs are higher than the CET (58% of the exceptions). 
The exceptions do not introduce new rates: the products are mostly reclassified in another tariff 
category. They no longer target a specific group of products, apart from man-made staple fibres (HS 2007, section 55), covered by over half the exceptions (28 tariff lines). 
Table 3.1 Composition of public revenues, 2008-2012 
(CFAF billion) 
 2008  2009  2010  2011 2012  
Total income 986.1 539.7 990.6 1,340.9 1,323.3 
 Oil revenue 776.5 283.8 683.8 1,015.7 956.0 
 Non-oil revenue 209.6 255.8 306.8 325.2 367.3 
 Fiscal revenue 200.5 239.5 296 310.6 336.2 
 Taxes on foreign trade .. .. .. 79.06 98.7 
 Import duties .. .. .. 33.4 42.1 
 Export duties .. .. .. 2.3 6.4 
 VAT on imports .. .. .. 41.0 43.0 
 Other revenue .. .. .. 2.5 3.1 
 Non-fiscal revenue 9.1 16.3 10.8 14.5 31.1 
Source: Ministry of Finance, St udies and Forecasting Department. 
3.1.6.2  Other duties and charges 
3.23.  Like other CEMAC countries, Chad co llects the Community Integration Levy (TCI), 
the OHADA levy, and the Community Integration Contribution (CCI) (common report, Chapter 3). 
These various charges jointly amount to 1.45% of the c.i.f. value of imports. 
3.24.  Other levies include: 
a. the Community Preference Levy (TPC): initially intended to finance the Community's 
Economic Commission on Livestock, Meat an d Fishery Resources (CEBEVIRHA). Although 
the other countries have replaced this levy with the TCI, Chad still collects it on tariff lines relating to fish, meat, dairy products and other products of animal origin; 
b. down-payment of 4% of the c.i.f. value of th e imports, charged in the form of personal 
income tax; 
c. statistical levy of 2% of the c.i.f. value of imports, charged on all imports, irrespective 
of origin; WT/TPR/S/285 • CHAD 
- 393 - 
  d. the Rural Intervention Fund (FIR) duty, char ged at rates varying from 0.3% to 0.5%, 
on 9% of tariff lines (products of plant origin, meat and fish).51 It is transferred to the 
Ministry responsible for agriculture; and 
e. for goods in transit through Cameroon, an information fee of CFAF 500, 
and a communications network and en route assistance fee of CFAF 2,000 is charged 
per journey, payable to Cameroon's Land Freight Management Bureau (BGFT). 
3.25.  Although Chad levies this broad spectrum of other duties and charges on imports, 
it has bound them at zero rates on tariff lines for which it has made tariff commitments. 
These levies have not been notified to the WTO. 
3.1.6.3  Bindings 3.26.  During the Uruguay Round, Chad bound its agricultural product tariff lines at a ceiling 
of 80%. In the case of non-agricultural products, tariff lines encompassing tourism vehicles 
and passenger transport vehicles (subheadings 8702 and 8703 of the 1992 HS), have been bound at a rate of 75%. In total, bindings affect 15.2% of six tariff items, and the simple average rate 
is 79.9%.
52 
3.27.  Chad has bound at a zero rate other duties  and taxes affecting tariff lines for which it has 
made multilateral commitments. 
3.1.6.4  Domestic duties and taxes 
3.28.  Chad applies the community regime in respect of VAT (common report, Chapter 3). Its 
standard VAT rate on local and imported goods and services is 18%. 
3.29.  In addition to exemptions provided for at the community level (common report, Chapter 3), 
the following products are VAT-exempt53: inputs for livestock breeding and fishery products 
used by producers; materials, equipment and services needed for producing and exporting 
cotton lint; materials, equipment and services need ed for the production and distribution of water 
and electricity; locally-made fired bricks; and interest on real estate loans granted 
by financial institutions. 
3.30.   Excise duty is charged on a number of local and imported products at rates of 5%, 10% 
or 25%. These rates are within the bracket agreed upon at the community level (common report, Chapter 3). The products on the community list and the corresponding rates are shown 
in Table 3.2. 
Table 3.2 Excise duty: rates in  force since 1 January 2009 
Tariff heading 
(HS Code) Products Rate 
2202 Water, including mineral water and sweetened carbonated water 5% 
2203.00.10 Beer made from malt, with no more than a 6.5% alcohol content by 
volume 20% 
2203.00.90 Other beer made from malt 25% 
2204 Wine of fresh grapes 25% 
2205 Vermouth and other wine of fresh grapes 25% 
2206 Other fermented beverages 25% 
2208 Compound alcoholic preparations 25% 
2402 Cigars (including cheroots, cigarill os and cigarettes of tobacco or 
tobacco substitutes) 25% 
2403a  Other tobaccos and manufact ured tobacco substitutes 25% 
33 Perfumes and cosmetics 20% 
71 Jewellery of precious stones 20% 
8521 Video recording apparatus,  magnetic tape-type  20% 
                                               
51 The rates have been substantially lowered since the previous TPR (they were between 1% and 4%). 
52 Based on bindings transposed according to the 2007 HS. 
53 Law No. 001/PR/2009 of 5 January 2009 defining the 2009 General State Budget. WT/TPR/S/285 • CHAD 
- 394 - 
  Tariff heading 
(HS Code) Products Rate 
8525 Television cameras 20% 
8528 Colour TV receivers 20% 
9006 Photographic apparatus 20% 
9007 Video cameras 20% 
90 08 Slide projectors 20% 
93 Firearms and ammunition 20% 
a Excluding the following tariff lines: 2403.10.10, 2403.91.00 and 2403.99.20.  
Source: Order No. 045/MFB/SE/SG/2009 of 4 March 2009 amending excise duty rates. 
3.31.  In 2006 an "antiretroviral charge" was imposed on tobaccos, certain beverages and liquors, 
and telephone cards54, applicable to local and imported products alike. Its rate is 0.5% of the face 
value for prepaid phone cards, and 1% of the custom s value (or of the selling price) of cigarettes, 
carbonated beverages, wines, mineral waters and liquors. According to the customs authorities, 
the charge is not actually being collected at the customs border. 
3.1.6.5  Exemptions and concessions on duties and taxes 
3.32.  Chad grants customs duty exemptions  pursuant to the CEMAC Customs Code common 
report), the Investment Charter, the Mining Code55 and the Hydrocarbons Law.56 As a result, 
the holders of mining rights and oil contracts, and the beneficiaries of authorizations and their 
agents, may use the temporary admission regime to import material, equipment and motor 
vehicles for use in their research and production activities. In the case of the mining sector, consumables and products destined for these acti vities are also exempt from customs duties 
and import taxes. To benefit from this exemption, an administrative certificate is required from 
the Minister responsible for mining or petroleum, as the case may be. 
3.33.  Since 2004, the value of exemptions has quadrupled to reach a level of CFAF 244 billion 
in 2011, representing three times the revenues collected from taxes on foreign trade 
(including VAT). Most of these exemptions were agreed upon in the context of development 
projects in the oil and industrial sectors. 
3.1.7  Import licensing, prohibitions and other restrictions 
3.34.  According to the customs authorities, Ch ad does not apply import prohibitions except 
for those provided in connection with enviro nmental protection, and those arising from 
its international commitments (Table 3.3). According to the authorities, no quantitative restriction 
is currently in force. Import and export licensing regimes were abolished in 1995, except for 
sulphur and other explosives. The WTO was notified of this.
57 
Table 3.3 Products subject to import prohibition, authorization or control 
Products Measure and conditions Reason 
Non-biodegradable plastic bags Prohibition Environmental protection58  
Non-digital television receivers Prohibition Conversion to digital 
in 2015 
Communications technology 
equipment Control Compliance 
                                               
54 Law No. 025/PR/2006 of 19 July 2006 amending Law No. 09/06 of 10 March 2006 defining 
the 2006 General State Budget. 
55 Law No. 011/PR/1995 of 20 June 1995 on the Mining Code. 
56 Law No. 006/PR/2007 of 2 May 2007 on hydrocarbons. 
57 WTO document G/LIC/N/1/TCD/1 of 31 August 1998. 
58 Order No. 007/MCPI/SE/DG/DC/DCE of 22 May 1993 prohibiting the importation of non-biodegradable 
plastic bags throughout the country. WT/TPR/S/285 • CHAD 
- 395 - 
  Products Measure and conditions Reason 
Certain products and/or equipment 
containing or operating with 
ozone-depleting substances59  Special authorization from the Ministry 
responsible for trade Environmental protection 
(Montreal Protocol) 
Arms and ammunition Prior authorization and control by the 
Ministry responsible for public security Public safety 
Sulphur and other explosives Special authorization jointly issued by the 
Ministers responsible for trade and mining Environmental protection60  
Second-hand vehicles Restrictions on the technical state and age 
of the vehicle Environmental protection61  
Oil products (gasoline, diesel, fuel 
oil, lubricants and kerosene) Qualitative and quan titative control, 
potentially leading to the issuance of a 
certificate of nationality and quality Security62  
Certain harmful or dangerous 
chemical substances Prohibition Environmental protection63  
Certain harmful or dangerous 
chemical substances Restrictions (authorization, packaging 
and transport conditions) Environmental protection  
Source: Information provided by the national authorities. 
3.1.8  Standards and technical regulations 
3.35.  According to the authorities, there is no legal framework for standards and 
technical regulations. Chad has not notified the WTO of any technical regulations (within the meaning of the WTO Agreement on Technical Barriers to Trade (TBT)). It is not a member 
of the International Standardization Organization or the International Electrotechnical Commission, 
or the African Standardization Organization. 
3.36.  Law No. 30 of 28 December 1968, on pricin g, economic intervention and the repression 
of economic offences, contains provisions relating to the publication of the prices of products 
available for sale. Although it stipulates that prices must be published by means of marks, 
displays or labelling, these provisions are seldom observed in practice. 
3.37.  There is no accreditation system, although a seed standardization service is operating 
in the Ministry responsible for agriculture. In the framework of the iQ-CEMAC community project, 
a law is being drafted to set up a national metrology system. 
3.1.9  Sanitary and phytosanitary measures 
3.38.  Chad has not made any notification to the WTO concerning sanitary and phytosanitary 
measures (within the meaning of the Agreem ent on the Application of SPS Measures). 
3.39.  The import of animal products is subject to health checks conducted by officials 
of the Veterinary Services Department in the Mini stry responsible for livestock breeding. A health 
certificate is issued on completion of the check. 
3.40.  In relation to animal health, a law passed in 2004 lists diseases that are "recognized in law 
as contagious", and defines hygiene, medical, sanitary, and legal measures that the administration 
can consider in combating these diseases.
64 The law authorizes the Ministry responsible 
                                               
59 This covers the following products: automobile ai r-conditioning equipment; domestic or commercial 
refrigerators and air-conditioning appliances; refrigeratio n facilities; portable extinguishers; insulating panels; 
aerosols; freon; and thermal insulation (Decree No. 09/PR/PM/MERH of 6 August 2009 regulating 
environmental pollution and nuisances). 
60 Decree No. 451/PR/95 of 29 June 1995 repealing Decree No. 282/PR/MCI/89 of 5 May 1989 
determining procedures for the importat ion, distribution and circulation of products in the Republic of Chad. 
61 Decree No. 1112/PR/PM/MI/2006 of 11 December 2006 regulating the importation of second-hand 
vehicles in the Republic of Chad. 
62 Decree No. 021/PR/MMEP of 1 February 1995 on  the qualitative and quantitative control 
of petroleum products. 
63 Decree No. 09/PR/PM/MERH of 6 August 2009 regulating environmental pollution and nuisances. 
64 Law No. 009/PR/2004 of 19 May 2004 organizing the sanitary inspectorate and the collective 
prevention of known contagious diseases of anim als on the territory of the Republic of Chad. WT/TPR/S/285 • CHAD 
- 396 - 
  for livestock breeding to introduce "permanent measures" to protect national livestock herds, 
even when there has been no outbreak of these diseases. The measures can be imposed 
on imports and exports of live animals and their products. In addition, temporary prohibitions were introduced in 2006 and 2010, respectively, to combat avian flu
65 and prevent African 
swine fever (ASF).66 
3.41.  With the aim of protecting the local industry, prior authorization is required to import 
live animals, meat and other products of animal origin, as well as their hides and skins. 
3.42.  Under the plant protection law67, anyone wishing to import plant material or products liable 
to be carriers of organisms that could harm plants or have an effect on crops, whether for commercial or professional reasons, must obtain prior authorization to engage in the activity. The products in question must be a ccompanied by a phytosanitary certificate issued 
by the official department in the country of or igin, and drawn up according to the model of the 
International Plant Protection Convention (IPPC). Upon entry into Chadian territory, the products (including those in transit) undergo phytosanitary control. 
3.43.  The control is carried out by officials of the Department of Plant Protection and Packaging 
(DPVC), a unit of the Ministry responsible for agriculture. To fulfil its brief, the DPVC has 15 phytosanitary control posts distributed alon g the country's borders. On completion of the 
control, products presenting a danger for plant materials, the environment, humans or animals, 
can either be subjected to a disinfection measure, or else rejected or destroyed, depending on the seriousness of the risk. A f ee is charged by the DPVC. 
3.44.  The DPVC is also responsible for implementing the obligations arising from the international 
conventions to which Chad is party, including the IPPC, the Inter-African Phytosanitary Council 
(IAPSC), the Codex Alimentarius  Commission, and the World Organisa tion for Animal Health (OIE). 
3.45.  As a member of the Permanent Interstate Committee for Drought Control in the Sahel 
(CILSS), Chad ratified the pesticide approval regulations common to its member States.
68 
Under these regulations, any pesticide must be approved or authorized before its importation, distribution, marketing, or use. The implementati on of these regulations, particularly pesticide 
approval, is the responsibility of the Sahelian  Pesticide Committee (SPC), whose decisions are 
applicable in the nine member countries. Since its creation, the SPC has issued 166 approvals and sale permits, and has banned two products. 
3.46.  A Food Quality Control Centre (CECOQDA) was created in 2010.
69 Under the Ministry 
responsible for livestock breeding, this Centre's mission includes contributing to the drafting 
of national standards on the hygienic and nutriti onal quality of food products, and serving as 
an advisory bureau for producers and consumers on related issues. As the Centre is not operating, 
however, there is currently no mechanism for cont rolling the quality of imported food products. 
3.1.10  Contingency measures 3.47.  Chad does not have national legislation on anti-dumping measures, subsidies 
or countervailing measures
70; and safeguard measures are not regulated either.71 According to the 
authorities, these measures are to be regulated at the community level. 
                                               
65 Order No. 10/ME/SG/ 026/DSV/06 prohibiting the importation of eggs, poultry cuts and slaughtered 
poultry throughout national territory 
66 Order No. 028/PR/PM/MERA/SG/136/DSV/10 of 27 May 2010 instigating measures to prevent ASF 
from entering Chad. 
67 Law No. 14/PR/95 of 13 July 1995 and Decree No. 010/PR/MA/99 of 7 January 1999 establishing the 
rules for implementing Law No. 14/PR/95 on plant protection. 
68 Chad is the only CEMAC member country in the CILSS. Online information. Viewed at: 
http://www.insah.org/doc/pdf/RCfr.pdf [27 February 2013]. 
69 Law No. 021/PR/2010 of 10 November 2010, creating a food product quality control centre 
(CECOQDA). 
70 WTO documents G/ADP/N/1/TCD/1, G/SCM/N/1/TCD/1 of 25 August 1998; and G/SG/N/1/TCD/1 
of 31 July 2000. 
71 WTO document G/SG/N/1/TCD/1 of 31 July 2000. WT/TPR/S/285 • CHAD 
- 397 - 
  3.1.11  Other measures 
3.48.  In 1999, Chad notified the WTO that it was not applying any trade-related investment 
measures (TRIMs).72 According to the authorities, no agreement has been concluded with foreign 
governments or enterprises with a view to influencing the quantity or value of goods and services 
exported to Chad. Moreover, the authorities are unaware of any such agreements between local 
and foreign enterprises. Chad participates in the international trade sanctions decided upon by the United Nations Security Council and the regional bodies of which it is a member. 
3.49.  The National Food Security Office maintains a buffer stock of food products as part of its 
mission (Chapter 4).
73 It constitutes/replenishes this stock through local purchases or imports. 
Operators in the downstream oil sector, such as refineries and distributors, are also required to hold a buffer stock of all products, covering  at least 15 days of their domestic demand.
74 
Lastly, for national defence and domestic security reasons, the State maintains a buffer stock 
to cover at least 30 days' domestic consumption. 
3.2  Measures directly affecting exports 
3.2.1  Procedures 
3.50.  As in the case of imports, only operators holding commercial importer/exporter status are 
authorized to engage in export activities for commercial purposes. The export procedure includes 
the following stages: 
a. establishment of a CEMAC certificate of origin or movement, whichever applies, 
from the CCIAMA; 
b. export declaration: this can only be presen ted by authorized customs brokers, who must 
submit the following documents on behalf of their clients: certification of the status 
of importer/exporter, proof of registration in the Commerce and Personal Property Credit Register, and a certificate of origin; 
c. establishment of a sanitary or phytosanitary certificate, as applicable; 
d. control of merchandise based on its sensitivity; and 
e. payment of exports. 
3.51.  For certain products such as livestock, meat, and food products of animal origin, additional 
formalities are required. When crossing the border live animals must be accompanied by a livestock passport and an International Certificate of Transhumance.
75 The fees for issuing the 
passport are CFAF 2,500 per herd, plus CFAF 4,000 for equine livestock, CFAF 1,000 for sheep, 
goats and asses, and CFAF 500 for pigs. The export of meat and other products of animal origin 
is taxed at the following rates: CFAF 50/kg for meat, CFAF 100 per bovine hide, CFAF 50 per sheepskin or goatskin, and CFAF 100 per sheepskin [sic] and skins of other species. 
An extra charge of CFAF 2,500 is also imposed to finance the Livestock Fund. 
3.2.2  Export taxes 3.52.  An export duty is charged on the f.o.b.  value of exported products at rates of 8% 
for animals, 2.5% for oil products and 2% for other products. In the case of live animals, the 
export duty is applied on the market values defined by the Ministry responsible for finance 
(Table 3.4). The relatively high rate on livest ock, a product in which Chad has a comparative 
advantage in the subregion, represents a handicap for sector development, and also causes fraud 
and informal trade to proliferate. 
                                               
72 WTO document G/TRIMS/N/2/Rev.5 of 22 February 1999. 
73 Law No. 002/PR/01 of 21 February 2001, creating a National Food Security Office (ONASA). 
74 Ordinance No. 006/PR/12 of 7 February 2012, concerning the export and import 
of petroleum products. 
75 Order No. 039/MERA/SG/08 of 14 October 2008, regulating the export of live animals and livestock 
byproducts. WT/TPR/S/285 • CHAD 
- 398 - 
  3.53.  Exports of livestock, skins and hides are al so subject to the IGL (Table 3.4), with skins and 
hides paying a rate of CFAF 100/kg. The inspection and packaging fee and the research levy have been abolished.
76 
3.54.  The following other duties are also collected: 
a. the Export Statistics Levy77, at a rate of 2% on the f.o.b. value of the exports, 
irrespective of destination. This is also applicable to oil exports; 
b. the Community Preference Levy at 0.4% on ex ports of products of animal origin; and 
c. the FIR duty on exported products: since the previous TPR, the number of tariff lines 
subject to this charge has been reduced from over 600 to about 20. It is now only maintained on some types of tea, certai n skins, and cotton, at rates of 0.3%, 
1% and 0.5%, respectively. 
Table 3.4 Market values and levies on exports of live animals 
(CFAF per head of livestock) 
Tariff line Type of livestock Market value Export duty 
 (8%) General standard 
rate tax (IGL) 
0101.10.10 Racehorses 366,000  29,280 1,500 
0101.10.10 Other horses 219,600  17,568 1,500 
0106.90.10 Camels 219,600  17,568 1,500 
0102.90.10 Cattle 183,000  14,640 1,000 
0104.10.00 Sheep  54,900  4,392 150 
0104.20.00 Goats 36,600  2,928 150 
0101.90.00 Asses  36,600  2,928 100 
0103.10.00 Pigs 29,280  2,342 150 
Source: Order No. 037/MFB/SE/SG/DGDDI/2011 of 1 March 2011 revising the export market values 
of live animals. 
3.55.  A charge of CFAF 3 is levied on crude oil exports for issuance of the certificate of origin. 
In the case of fuel exports, the rate is CFAF 2.5/litre; and an additional levy of CFAF 2.5/litre 
is charged on fuel exports to finance the Chadian Downstream Oil Sector Regulatory 
Agency (ARSAT). 
3.2.3  Export prohibitions, restrictions and licensing 
3.56.  Export and re-export licensing procedures have been abolished since 1995. In general, 
theonly quantitative restrictions and controls in force on exports are those derived from the treaties to which Chad is party (Basel Convention, the Convention on International Trade in Endangered Species of Wild Fauna and Flor a (CITES), the Chemical Weapons Convention, 
and the Treaty on the Non-Pro liferation of Nuclear Weapons). 
3.57.  Where necessary, the Minister responsible for trade may prohibit or restrict the export 
of a product.
78 I n  r e s p o n s e  t o  t h e  f o o d  c r i s i s  t h a t  occurred in 2008, the authorities adopted 
temporary measures, such as a ban on exports of all types of food products, including live cattle 
and dried and smoked fish. 
3.58.  With the aim of preserving the herd, breeding bulls and cows may not be exported.79 
The same applies to live animals of bovine and camel species under five years of age. The local 
administrative authorities may also restrict cereal exports at any time in the event of a shortage. 
                                               
76 Law No. 01-2007 of 5 January 2007 defining the 2007 General State Budget. 
77 The statistics levy is also charged on imports. 
78 Decree No. 451/PR/95 of 29 June 1995 repealing Decree No. 282/PR/MCI/89 of 5 May 1989 defining 
procedures for the import, distribution and move ment of products in the Republic of Chad. 
79 Decision No. 001/ME/2003 of 5 March 2003. WT/TPR/S/285 • CHAD 
- 399 - 
  3.2.4  Export subsidies, promotion and assistance 
3.59.  According to the authorities, Chad does not subsidize its exports. As is the case in other 
CEMAC countries, the zero VAT rate enables exporters to be reimbursed for the VAT paid on their inputs. Various community-level suspensive arrangements are also applicable (common report, 
Chapter 3). Chad does not have any tax-free zones. Studies are ongoing for the creation 
of dry docks. 
3.60.  Export promotion is the task of the ANIE. In this sphere, the Agency's mission is to assist, 
advise and inform Chadian exporters, and to prospe ct for promising markets. ANIE is funded from 
government subsidies, fees for services rendered and part of the certificate of origin fee (CFAF 1/litre of fuel exported). 
3.61.  Trade fairs are organized on an occasi onal basis by the CCIAMA, generally financed 
by the participating enterprises. For a number of years, a group of Iranian private companies has 
organized an annual trade fair ( Foire Ariane ) in N'Djamena. 
3.3  Measures affecting production and trade 
3.3.1  Incentives 
3.62.  Incentive measures are provided for in the General Tax Code (CGI), the Investment 
Charter, the Mining Code, and the Hydrocarbons Law. 
3.63.  The incentive measures contained in the CGI are applicable to business start-up, 
the introduction of a new activity, or a substantial extension of an activity already being exercised. The activities in question are limited to the indust rial, mining, agricultural, forestry and real estate 
sectors and should not be competing with those that are already being exercised "in a satisfactory 
manner" by existing enterprises (Articles 16 and 118 of the CGI). Under these conditions, 
operators can obtain a five-year exemption from the following taxes and charges: company tax (IS); personal income tax (IRPP); real  estate levies on developed land; real estate 
levies on undeveloped land; tax on the rental value of professional premises; the flat rate levy 
(taxe forfaitaire ) and the apprenticeship levy, patent duty, and the minimum fiscal levy. 
3.64.  During the exemption period, firms have the opportunity to apply declining balance, 
accelerated or constant depreciation, carrying forward negative results to subsequent fiscal years, 
and deducting 40% of investments made from the IRPP and IS tax bases. The latter measure applies to investments in the following areas: real estate development, purchases of materials and large tools, creation or extension of areas for livestock breeding, and capital contributions 
for semi-public companies. These measures are negotiated in connection with the 
framework agreements. 
3.65.  The Investment Charter offers additional ad vantages to firms investing in isolated areas, 
far from urban centres and with little industry. In such cases, the tax exemption period extends 
to ten years. They may also receive development su bsidies if they provide social services of the 
type normally provided by the Government. 
3.66.  In addition, the State offers a 50% reduction on registration duties in situations of business 
start-up, corporate merger, capital increase, or share transfers. It also provides exemption from duties on the purchase of land to be used for investment projects, or to create or expand an enterprise. Firms wishing to benefit from these advantages must apply to the Ministry 
responsible for industry for authorization or conclude a framework agreement. They must also 
submit a three to five-year forward investment programme. 
3.67.  Additional measures are envisaged in laws  governing the mining and hydrocarbons sectors, 
such as a tax reduction for partial reinvestment of taxable profits. The various framework 
agreements may also contain specific advantages. For example, products from the newly operating 
refinery (Chapter 4) are exempt from all domestic taxation (including VAT). WT/TPR/S/285 • CHAD 
- 400 - 
  3.3.2  Competition and price control regime 
3.68.  Community provisions on anti-competitive trade practices and government practices 
affecting trade between member States (common report) have not yet been incorporated into domestic legislation. The current regula tory framework is defined by Law No. 30/PR 
of 28 December 1968, on pricing, economic interv ention and the repression of economic offences. 
3.69.  In 2004, a Joint Economic Enforcement Group was set up to combat unfair trade practices
80, 
staffed from the ministries responsible for trade, finance and security. Its responsibilities include 
combating non-compliance with the laws and regulations, and taking action to suppress 
anti-competitive and restrictive trade practices, among other things. In practice, the group's activities focus more on combating the smuggling of products such as cigarettes, soaps, sugar, 
and oil products. 
3.70.  Chad does not have specific domestic consumer protection legislation. The powers 
of the Joint Enforcement Group nonetheless includ e combating the following practices: failure to 
publish prices or issue invoices, refusal to sell, or the marketing of products that have passed their 
use-by date. Since 1996, the ADC has been promoting consumers' interests through lobbying 
and advocacy. It also obtained a VAT exemption on the social tranche of drinking water supplies, and helped write the law on the generation, transport and distribution of electricity.
81 
3.71.  Draft laws relating to competition and consumer protection are currently being reviewed 
by the National Assembly. 
3.72.   Barring a few exceptions, prices can generally be freely set (Table 3.5). When business 
conditions so require, the maximum selling price for products, at the wholesale, semi-wholesale 
and retail levels, together with the price of serv ices, may be set by order of the authorities. 
In 2010, an order issued by the Ministry respon sible for trade provisionally set maximum selling 
prices for the following food products (whether locally produced or imported)82: rice, salted fish, 
pasta and edible oil. 
Table 3.5 Products whose prices are controlled 
Product Measure In force 
Locally produced cement  Maximum retail sale price set 
at CFAF 6,500/50 kg bag  2012 (liberalized since 
January 2013) 
3 m galvanized corrugated 
iron sheets Fixed selling price Introduced in 2007 
but not applied 
Water  CFAF 100/m3  .. 
Electricity  Low voltage: CFAF 85/kWh for the 
first 150 kWh, and CFAF 125/kWh thereafter 
Other: single tranche, CFAF 125/kWh Latest review in 2012 
3 kg and 6 kg gas bottles  Maximum selling price set at CFAF 1,400 (3 kg) 
and CFAF 2,900 (6 kg) .. 
Generic medicines  Profit margins set at 20% for wholesalers, 
and 30% for pharmaceutical dispensaries 
and depots  .. 
Local petroleum products  Premium petrol: CFAF 480/l; diesel fuel: 
CFAF 525/l; A1 jet fuel: CFAF 575/l; kerosene: CFAF 375/l .. 
.. Not available. 
Source: Information provided by the Chadian authorities. 
                                               
80 Interministerial Order No. 009/MCIA/MEF/2004 of 3 March 2004. 
81 Law No. 014/99 of 15 June 1999 relating to the genera tion, transport and distribution of electricity. 
82 Order No. 030/PR/PM/MCI/2010 of 30 August 2010, provisionally setting maximum selling prices 
for local and imported food products in the city of N'Djamena. WT/TPR/S/285 • CHAD 
- 401 - 
  3.3.3  State trading, State en terprises and privatizations 
3.73.  In 2001, Chad notified the WTO that it had no State trading enterprises.83 The State's 
withdrawal from government-owned companies is covered by a 1992 ordinance84, which lists 
some 40 companies from which the State is authorized to withdraw, and specifies the relevant 
modalities. Withdrawal can be achieved by tran sferring ownership of the company (through the 
sale of assets or shares, or through a paid transaction) or by transferring its management. A technical commission has been set up to monitor the process. The procedures and methods 
whereby the State withdraws from businesses have not changed since Chad's 2007 TPR.
85 
3.74.  Since the most recent TPR, some ten enterprises have embarked upon privatization.86 
In addition, a number of new wholly State-owned or majority State-owned companies have been 
set up (Table 3.6). 
Table 3.6 Trend in State participation in businesses, 2006-2012  
State-owned companies Sphere(s) of activity State 
ownership 
share (%) Comments 
2006 2012 
Primary products     
National Food Security Office 
(ONASA) Management of a stock 
of food products 100 100 See Chapter 4 
Société des hydrocarbures du Tchad Petroleum products 100 100  
Manufactures     
Compagnie sucrière du Tchad (CST) Sugar 8.6 8.6 Privatized 
Abattoir frigorifique de Farcha (AFF) Meat 100 0 Under a management 
contract 
Société nationale de production 
animale (SONAPA) Animal feed 100 .. Privatized, assets 
transferred to a 
cooperative 
Société cotonnière du Tchad (COTONTCHAD)  Cotton 75 100 Liquidated, new company 
created ( CotonTchad SN ) 
Compagnie tchadienne des textiles 
(COTEX, formerly STT) Textiles 75 100 Reorganized, new 
company ( Société 
tchadienne de filature ) 
Société tchadienne de jus de fruit  Agrifood .. 100 Created in 2011 
Société nationale du ciment 
(SONACIM) Cement production .. 100 Created in 2012 
Services     
Centrale pharmaceutique 
d'approvisionnement (CPA) Pharmaceutical 
products 15 100 Formerly PHARMAT 
Société industrielle de matériels 
agricoles (SIMAT) Agricultural Materials 100 100 Reorganized, new 
company created in 2009 
(SIMATRACT) 
Société tchadienne d'eau et 
d'électricité (STEE)  Water/electricity 100 100 Split into two companies 
Office national de l'hydraulique 
pastorale et villageoise (ONHPV) Water well drilling 34 .. Has become Société 
tchadienne d'hydraulique  
Toumaï Air Tchad Air transport 40 ..  
Société générale tchadienne de 
banque (SGTB) Financial services 20 20 Has become Société 
générale Tchad (SGT) 
Commercial Bank Tchad (CBT) Financial services 17 62.5  
Caisse nationale de prévoyance 
sociale (CNPS) Pension fund 100 100 Being reorganized 
Caisse nationale de retraite du 
Tchad (CNRT) Pension fund 100 100 Being reorganized 
                                               
83 WTO document G/STR/N/7/TCD of 5 July 2001. 
84 Ordinance No. 017/PR/92 of 29 August 1992 author izing the State to withdraw from companies. 
Viewed at: http://www.cefod.org/legitchad/web/texte/3745 [9 January 2013]. 
85 WTO (2007). 
86 Republic of Chad (2010). WT/TPR/S/285 • CHAD 
- 402 - 
  State-owned companies Sphere(s) of activity State 
ownership 
share (%) Comments 
2006 2012 
Centre national d'enseignement 
artisanal et professionnel des arts 
appliqués (CNEAPAA) Teaching 100 100 .. 
Laboratoire national des bâtiments 
et travaux publics (LNBTP) Civil engineering 
studies 100 100 .. 
Laboratoire de recherches 
vétérinaires et zootechniques 
(LRVZ) Medical services 
and products 100 100 .. 
National Employment Promotion 
Office (ONAPE) Employment agency 100 100 .. 
National Rural Development Office 
(ONDR) Agricultural support 
and outreach services 100 100 .. 
Société tchadienne des postes et de 
l'épargne (STPE) Postal services  100 100 .. 
Société des télécommunications du 
Tchad (SOTEL TCHAD) Telecommunications 100 100 .. 
Novotel (SOTEXHO) Hotels 100 100 Management contract, 
expiry in 2011 
Méridien Hôtel (Sonex Chari) Hotels 100 100 Management contract, 
expiry in 2014 
Société de développement du lac 
(SODELAC) Development 
of Lake Chad 100 100 .. 
Source: Information provided by the Chadian authorities. 
3.3.4  Government procurement 
3.75.  Chad is neither a party nor an observer in the Plurilateral Agreement on Government 
Procurement, and it is not currently involved in any process to join it. According to the authorities, 
better dissemination of the provisions of this Agreement, particularly those relating to developing countries, and a study of its impact on the Chadian economy, would need to precede 
any such process. 
3.76.  Enacted in December 2003, the Government Procurement Code defines the rules applicable 
to the preparation, award, implementation an d supervision of public contracts for works, 
supplies and services, including intellectual services, in Chad.
87 Sovereignty spending, 
such as military expenditure, are not covered by the Code. The Code specifies the applicable 
administrative sanctions and actions relating to the prevention and settlement of related disputes. It covers purchases made by the State, the decentralized authorities, a number of public 
institutions, and certain wholly or majority State-owned companies.
88 The Code is applicable 
to government procurement for amounts, including taxes, in excess of CFAF 10 million (around €15,243).
89 For government procurement valued between CFAF 10 million 
and CFAF 50 million (around €76,220), the contracts have to be authorized by the Minister 
responsible for finance, and approval by the Presid ent of the Republic is also required. The Code 
does not cover real estate purchases and contracts, or agreements to delegate public services. 
3.77.  Under the provisions of the Code, an invita tion to bid must be issued for any government 
procurement worth more than CFAF 10 million. Th e bid evaluation criteria and their relative 
                                               
87 Decree No. 503/PR/PM/SGG/2003 of 5 December 2003, instituting the Government Procurement 
Code in the Republic of Chad. 
88 The scope may be extended to other public inst itutions, persons who benefit from State financial 
support or a State guarantee or to whom the stat us of contracting authority has been delegated. 
89 Decree No. 462/PR/PM/SGG/2004 establishing award thresholds and approval powers 
in government procurement. WT/TPR/S/285 • CHAD 
- 403 - 
  weightings must be made known to the candidates in  the invitation to bid. If a national preference 
m a r g i n  i s  t o  b e  a p p l i e d ,  i t  m u s t  a l s o  b e  s h o w n  t h e r e .  I n  t h e  c a s e  o f  i d e n t i c a l  b i d s ,  n a t i o n a l  preference can be granted to eligible national  bidders provided their price bid is not more 
than 15% higher than the competitor price. The invitation to bid may be open to the public, 
or restricted to a defined list of candidates only. The "negotiated contract" procedure can 
be authorized in special cases. In any event, the use of another form of tendering must always be approved by the Government Procurement Board (OCMP). In the case of an open call for bids, 
a bidder of a nationality other than that of the contracting authority must form a consortium 
or enter into a subcontracting arrangement with national enterprises specialized in the field. Government procurement contracts can only be awarded directly if a monopoly holds the patent concerned. It cannot be authorized in any other circumstance, even in cases of emergency. 
3.78.  As regulatory authority, the OCMP moni tors the preparation and award of government 
procurement contracts. Since 2010, it has had delegations in the following cities outside the capital: Abéché, Doba, Moundou, and Sarh. Its authorization is a prior requirement 
forlaunching an invitation to bid. The OCMP is also responsible for disseminating the regulations, 
and for developing tools to make the procurement process more transparent. The Code requires invitations to bid to be displayed at the OCMP and to be brought to the public's attention by being 
published in the Official Bulletin of Government Procurement Notifications, as well as in at least 
one private media outlet, including electronic media. The same applies to the results. Since 2005, invitations to bid have no longer been published in the Official Bulletin. Electronic publication was considered for a time, with support from the World Bank, but the Internet site is still 
not operational. 
3.79.  Bids are opened by the Bid Opening and Evaluation Commissions ( Commissions d'ouverture 
et de jugement des offres - COJOs) in each ministerial department. These are independent 
of the OCMP, and consist of representatives from the contracting authority's contracts unit, 
members of the administration, independen t persons and the consulting engineer, 
where appropriate. Since 2007, COJOs have also been created at the regional level, to serve the 
decentralized State entities.
90 They are responsible for opening the envelopes, evaluating the bids 
and making provisional contract awards. 
3.80.  Except in the case of contracts for intelle ctual services, bidders are required to post a bid 
guarantee, generally between 1% to 2% of the provisional contract amount. This is refunded to 
bidders who fail to qualify on expiry of the bi d validity period. A good performance bond, of 
between 5% and 10% of the contract amount, is al so required except in the case of contracts 
lasting less than three months or contracts for intellectual services. 
3.81.  Before execution, awarded contracts must be approved by the Government's Central 
Secretariat. A single-window facility has been set up to facilitate the approval of contracts by the other authorities concerned (the OCMP, financial supervisor, and General 
Budget Directorate).
91 
3.82.  Penalties can be imposed if the contract is  not executed within the established timeframe. 
The global amount of penalties is limited to 10% of the contract amount. In the event of dispute, the first instance is the contracting authority's supervisory ministry. Failing that, recourse must be 
made to the Amicable Dispute Settlement and Appeals Committee, before any court action 
is taken. 
3.3.5  Intellectual property rights 
3.83.  Chad is a member of the African Intellectual Property Organization (OAPI) 
and the World Intellectual Property Organization (WIPO). It ratified the revised Bangui Agreement (1999) in 2000, and has also been a party to the Berne Convention since 1971. 
3.84.  Intellectual property issues are dealt wi th by the Department of Industrial Property 
and Technology, within the Ministry responsible for trade. This department also serves 
                                               
90 Decree No. 653/PR/PM/SGG/07 of 5 September 2007, instituting devolution 
of the procurement mechanism. 
91 Order No. 2890/PR/PM/SGG of 9 November 2007, creating a single-window facility for government 
procurement in the office of the Government' Centra l Secretariat. WT/TPR/S/285 • CHAD 
- 404 - 
  as National Liaison Unit (SNL) with the OAPI, and as contact point under Article 69 
of the TRIPS Agreement. To date, this unit has re ceived about 90 deposits of different intellectual 
property instruments (Table 3.7). 
Table 3.7 Trend in the number of deposits at the SNL, 2006-2012 
 2006 2007  2008  2009  2010  2011 2012 Total  
Patents 2 2 2 3 3 4 1 17 
Trademarks 3 2 1 3 4 2 3 18 
Trade names 3 7 6 9 3 5 4 37 
Industrial designs  4 2 3 3 2 1 2 18 
Source: Information provided by the Chadian authorities. 
3.85.  With support from WIPO, a strategic plan for intellectual property development 
and technological innovation is currently being prepared. An intellectual property strategy was finalized in 2012 but has not yet been adopted. 
3.86.  Copyright and related rights are protected by a law passed in 2003
92, which designates 
the Chadian Copyright Office (BUTDRA) as the only body exclusively authorized to deal with issues 
relating to the promotion and exploitation of artist ic, literary or scientific works, and the protection 
of the rights of authors and their successors in titl e. It is also authorized to manage the interests 
of the members of foreign copyright societies in national territory, when there is a mandate, 
reciprocity agreement or convention on the subject which is binding on Chad. It may also collect 
royalties, and authorize any communication of literary, musical, dramatic or artistic works 
to the public. 
3.87.  According to the authorities, the piracy  of artistic works and the counterfeiting of 
pharmaceutical products are the main spheres in which intellectual property rights are infringed 
in Chad.  
 
                                               
92 Law No. 005/PR/2003 of 2 May 2003, on the protection of copyright, related rights and expressions 
of folklore. WT/TPR/S/285 • CHAD 
- 405 - 
  4  TRADE POLICY BY SECTOR 
4.1  Agriculture and related activities 4.1.1  Overview 4.1.  Agriculture is a key sector in the Chad ian economy, both as an employer and in its 
contribution to GDP (Chapter 1). Its land resources are enormous but hardly used. Arable land is 
estimated at 39 million hectares, of which 5.4 m illion are potentially irrigable and 373,000 easily 
irrigable, owing to their proximity to rivers. Only 2 million hectares are under cultivation, however, 
and just 30,000 hectares are irrigated. Agricultural production, which is highly dependent 
on weather conditions, sometimes fluctuates co nsiderably. The main food crops are sorghum, 
berbere, pearl millet and groundnuts (Table 4.1). These are produced almost exclusively to satisfy local demand, which is also partly supplied by imports. Cotton and sugar cane are the main 
cash crops. 
Table 4.1 Trend in agricultural production by season, 2006-2012
a 
(Thousands of tonnes) 
 2006 2007  2008  2009  2010  2011 2012  
Cereal crops 1,991.1 1,972.0 1,778.8 1,575.1 3,247.6 1,657.2 3,161.2 
 Pearl millet 547.0 495.5 471.6 319.0 759.9 328.9 847.1 
 Sorghum 772.6 576.6 590.2 601.0 1,017.8 647.9 1,171.6 
 Maize 173.7 201.3 221.7 209.0 215.8 299.5 456.0 
 Rice 112.4 106.4 174.0 130.7 186.1 172.7 177.7 
 Berbere 383.6 584.0 313.2 315.4 1,066.3 206.4 500.1 
 Wheat 1.9 8.4 8.1 0.1 1.7 1.7 8.8 
Oil seeds 1,016.0 907.9 881.0 881.1 1,717.1 1,305.0 2,312.2 
 Groundnuts 420.0 464.3 548.3 517.4 1,103.3 569.9 1,297.7 
 Sesame 62.0 40.0 40.5 61.4 126.0 72.6 124.6 
 Bambara 
groundnuts 0.0 0.0 0.1 48.5 14.1 10.3 24.7 
 Black-eyed peas 13.5 68.4 62.0 5.2 91.6 80.4 124.1 
 Cassava 470.2 249.6 161.2 191.5 302.5 323.8 222.6 
 Sweet potato 49.2 57.7 43.3 28.9 45.7 216.6 518.4 
 Taro 1.1 27.9 25.5 28.2 33.9 31.5 0.0 
a The figures shown for year n corresp ond to agricultural season n/n+1. 
Source: Statistics provided by the national authorities. 
4.2.  Chadian agriculture is mainly extensive, and farmers mostly work small land areas with 
means of production that are rudimentary and of low productivity. Even cotton growing is based 
on family farms, usually with between 1 and 2 hectares under cultivation.93 Many factors handicap 
the productivity and profitability of farming ac tivities, such as the high cost of factors 
of production, lack of access to credit, and weak transport infrastructures. 
4.3.  The land tenure regime does not lend itself to the establishment of an official land market, 
particularly in rural areas94; and, in practice, the "modern" regime coexists with customary law. 
As a result, land ownership can be attested either by registering it or farming it (customary law). In rural areas, customary law predominates. In principle, land may not be sold 
to nationals of countries with which Chad does not have a reciprocity agreement on the subject, 
but in practice this provision is not applied. The State can also expropriate land that is unregistered and not being cultivated, and make it available to private individuals for cultivation. 
                                               
93 Online information from UNCTAD. Viewed at: 
http://r0.unctad.org/infocomm/francais/coton/filiere.htm#chad [28 February 2013]. 
94 Law No. 24 of 22 July 1967 on land tenure and customary rights. WT/TPR/S/285 • CHAD 
- 406 - 
  4.1.2  Agricultural policy 
4.4.  The Ministry of Agriculture and Irrigation  is responsible for the design, implementation, 
monitoring and evaluation of the Government's agricultural policy. It makes use of technical services, such as the National Rural Development Office (ONDR) for matters relating to producer 
support programmes; the National Food Security Office (ONASA) for the management of a buffer 
stock of food; and the Chadian Institute of Ag ricultural Research for Development (ITRAD). 
4.5.  The Government's policy objective is to modernize crop farming and livestock breeding to 
guarantee long-term food security. This policy is translated into actions in the National Food 
Security Programme (PNSA).
95 Launched in 2007, the Programme has the following specific 
objectives: to increase crop, animal and fisheries production through the introduction of new production, processing and conservation technologies; to implement and strengthen the 
mechanism for monitoring, early warning and rapid response in the event of a threat to food 
security; to increase the quantity, quality and availa bility of food products; and to help to raise the 
incomes of rural population groups. PNSA activi ties only really began in 2009 and the various 
actions had cost the State nearly CFAF 68 billion by June 2012 (Table 4.2). 
Table 4.2 Main PNSA achievements, 2005 to June 2012
 
Sub-programme and investments 
undertaken Main activities and achievements 
Exploitation of basic natural resources 
(CFAF 35.9 billion)  Preparation of 9,400 hectares of hydro-agricultural land; 
Construction and refurbishing of dams Drilling and refurbishment of grazing wells Supply of manual pumps 
Intensification and diversification of 
crop farming (CFAF 16.6 billion) Supply of 1,012 tractors at subsidized prices to enable farming 
communities to work the fields 
Subsidized sale of carts, barrows and hoes 
Free supply of 5,061 tonnes of cereal seeds and 3.2 tonnes 
of garden produce seeds 
Supply of 6,621 tonnes of fertilizer at subsidized prices 
Supply of phytosanitary produc ts and treatment apparatus 
Support for the "spirulina" pr oject, and for beekeeping 
and fishing activities 
Health and nutrition 
(CFAF 100 million) Nutritional health awareness-raising in seven schools 
in the capital city 
Constitution of the food stock and 
standby mechanism 
(CFAF 2.2 billion) Support to ONASA for the purchase  of 12,000 tonnes of cereals; 
Training of workers to build metal silos; 
Funding for the crop farming and livestock breeding census 
Support measures 
(CFAF 3.8 billion) Recruitment of agricultural advisers and tractor drivers 
Financing of the rene wable energy project 
Implementation of the PNSA 
(CFAF 8.4 billion) Building the capacity of ministries' technical services 
(ONDR, ITRAD, etc.) 
Source: Republic of Chad (2012). 
4.6.  Food security is the responsibility of ONASA, whose mission includes establishing and 
managing a reserve stock of food products to enable it to intervene at a time of need 
or emergency. The stock is made up of direct purchases and food grants and is managed by an 
Action Committee for Food Security and Crisis Management. This Committee targets vulnerable zones according to circumstances, and decides whether to make subsidized sales or free 
distributions.
96 In 2012, it held a stock of around 65,000 tonnes of food products, which were 
almost entirely cereals.97 Almost 52,000 tonnes have been sold at subsidized prices, 
generally below half the purchase price, and 450 tonnes have been distributed free. 
                                               
95 The PNSA forms part of regional initiatives, su ch as the Regional Programme for Food Security 
in Africa (PRSA) of Central Africa, and the Detailed Programme of African Agricultural Development (PDDAA) 
of the New Partnership for Africa's Development (NEPAD) (common report, Chapter 4). 
96 In situations of food insecuri ty, the World Food Programme and certain NGOs may distribute food 
products free or in exchange for community work. 
97 This stock is equivalent to about 2% of  national production of cereal products. WT/TPR/S/285 • CHAD 
- 407 - 
  4.7.  As a member of the CILSS, Chad participat es in the "8 Stocks" initiative, which encompasses 
eight countries of the Sahel.98 Under this initiative, the countries in question agree to maintain 
a solidarity reserve of at least 5% within their national stocks, which can be used to assist another member country in a crisis situation, either as a loan, grant or sale. Chad is currently constituting 
a 750-tonne cereal stock. 
4.8.  In relation to customs duties, the free moveme nt of agricultural products of community origin 
within the CEMAC zone is, in theory, guaranteed. Upon export, however, the products are subject 
to export duty of 2% irrespective of their destin ation. Although the CET provides strong protection 
for agriculture and food products (common report , Chapter 3), its structure does not encourage 
the emergence of an agrifood industry. In fact average tariff rates on food products, beverages 
and tobacco are 23.9%, 22.5% and 23.5% for unprocessed products, semi-processed products, 
and finished products, respectively. 
4.9.  Agricultural and food products are theo retically subject to sanitary and phytosanitary 
measures (Chapter 3). Nonetheless, the country does not have a comprehensive system 
of controls enabling it to ensure effective application of the regulations. This impairs not only the 
quality of exported products and the confidence of destination countries in them, but also the 
quality of imported products. This is one of th e reasons for the limited access to regional and 
international markets. The range of duties and taxes charged on top of the CET further 
undermines sector competitiveness. 
4.1.3  Policy by subsector 4.1.3.1  Livestock farming and its byproducts 
4.10.  Livestock breeding and crop farming jointly form one of the pillars of the Chadian economy. 
In 2010, the livestock herd was estimated to comprise 7.4 million head of cattle; 6.6 million goats, 3 million sheep and 1.4 million camels.
99 Livestock farming is essentially mobile, based on 
nomadism and transhumance. Given the variability of weather conditions, the availability of water 
in grazing land varies by region and over time. As a result, livestock breeders may have to migrate over distances in excess of 500 km, which is bound to generate conflicts with sedentary livestock 
breeders and crop farmers who use the same resources. Other constraints on the development 
of livestock farming include the shortage of graz ing land and water resources, low productivity, 
and difficult access to subregional and regional markets. 
4.11.  Processing activities are underdeveloped. The sector currently has one main slaughterhouse 
in N'Djamena, which is State-owned but managed by a private Chadian firm (Société moderne 
des abattoirs/Abattoirs frigorifiques de Farch); there is also a privately run slaughterhouse in Sahr, as well as regional units operated by the Ministry responsible for livestock in each of the principal 
towns. In these slaughterhouses, while meat co nservation facilities do exist, they are not 
operational. As a result, meat is only exported by private agents on an individual basis. The commercialization of livestock and byproducts , such as hides and skins, hoofs and horns, 
is merely incipient. There is no industrial structure for the modern treatment and processing 
of these products and the techniques used are traditional and inefficient, which contributes to poor quality. 
4.12.  The goal of government policy in this sector is to make the products competitive on regional 
and international markets by providing substantia l support for livestock farmers and their grazing 
practices. The Ministry of Livestock and Animal Resources is responsible for the design and implementation of the national policy on li vestock development, the exploitation of grazing 
resources and animal health. 
4.13.  The National Livestock Development Plan (PNDE) provides the main framework for 
government policy in this sector.
100 Its aim is to "sustainably expand animal production to improve 
and increase the sector's contribution to growth, and reduce poverty and food insecurity". 
                                               
98 The "8 Stocks" initiative involves the following countries: Benin, Burkina Faso, Mali, Senegal, Nigeria, 
Togo, Niger and Chad. 
99 These numbers are obtained from the growth  rate applied to statistics obtained from 
the First Livestock Census held in 1976. Another census is currently under way. 
100 Ministry of Livestock and Animal Resources (2008). WT/TPR/S/285 • CHAD 
- 408 - 
  This overall objective is detailed in eight points including the introduction of new processing 
and conservation technologies to develop marketin g and export activities. The plan is expected 
to be implemented over a period of eight years, with a budget of about CFAF 184 billion. 
4.14.   Actions undertaken within the PNSA aim, among other things, to improve supplies 
of pastoral water; ensure the availability of ve terinary and zootechnical products; and promote the 
development of poultry farming, rabbit breeding and small ruminant livestock breeding. Activities undertaken by late 2012 included the cons truction of pastoral wells; the supply of inputs, 
such as chicks and calves, and vaccines and feed for dozens of poultry farms; the training 
of poultry farmers; and the training of persons involved in dairy farming. 
4.15.  A project to build an industrial complex for ruminants is currently in the process of being 
approved by the authorities. It would be se t up in Djermaya and consist of a modern 
slaughterhouse with a slaughtering capacity for 420 cattle and 720 small ruminants, 
as well as units for processing skins and other byproducts.
101 It would be owned 49% 
by the Chadian State and 51% by the Turkish agribu siness group, TANA. The pr oject is still in the 
study phase. 
4.16.  In addition to the heavy tariff protec tion provided under the CET (common report, 
Chapter 3), the livestock sector is also subjec t to numerous levies and procedures on both 
the export and import fronts (Chapter 3). This  drives a large proportion of trade into the 
informal sector. 
4.17.  Livestock represents the country's second most important export product, cattle and camels 
being the main species exported. The former are exported live to Nigeria, and in smaller numbers 
to Cameroon and the Central African Republic, wh ile camels are exported to Libya and Egypt. 
Livestock trade is subject to an 8% export duty (Chapter 3); and a levy of up to CFAF 5,000 per head of cattle and camels is charged to finance the Livestock Fund. In addition, health control 
requires the payment of CFAF 2,500 per herd fo r the health passport. All of these charges 
undermine the competitiveness of a sector in which the country nonetheless has a certain comparative advantage. As a result, cases of illegal border crossing and under-declaration 
of the numbers of animals being exported are frequent. 
4.1.3.2  Cotton 4.18.  Cotton is Chad's third most important export product after crude oil and livestock. 
Cotton growing involves about 350,000 producers and represents a major source of income 
for over 3 million Chadian people. The sector is organized around the CotonTchad ginning 
company (now known as CotonTchad société nouvelle (CotonTchad SN)), a majority State-owned company, which has a monopoly of the purchase of seed cotton from producers, and also 
on ginning and marketing. It has nine ginning factories with capacity to handle 257,000 tonnes 
of seed cotton per year. Nonetheless, thei r utilization rates are no more than 50%. 
4.19.  At the start of each agricultural season, the cotton company supplies planters 
(grouped in village associations) with inputs, on  an interest-free credit basis, subject to its 
repurchase of the seed-cotton production. In puts are imported duty free and distributed 
by the ONDR. Prices are set by a joint committee involving representatives from the cotton company, the ONDR and village associations. When purchasing the cotton, the ginning company 
deducts the cost of the inputs. The provision of inputs to village associations is based 
on a solidarity bond, which, in the event of non-payment sometimes gives rise to disputes between producers. 
4.20.  The production of seed cotton has evolved erratically owing to weather conditions and 
difficulties in the sector (Table 4.3). Since 1997, the sector has been in a deep crisis which has led many producers to abandon cotton growing to cult ivate food crops. Seed cotton production fell 
from a peak of 263,000 tonnes in 1997 to just 35, 100 tonnes in 2009. Nearly all of the cotton lint 
                                               
101 Online information. Viewed at: 
http://www.journalavoix.info/derniereminute.php?action=fullnews&id=185 [31 January 2013]. WT/TPR/S/285 • CHAD 
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  produced is exported, with a negligible part being sold locally, specifically to the company 
Nouvelle société textile du Tchad (NSTT), at the market price.102 
Table 4.3 Selected features of the cotton sector, 2001 and 2007-2012a 
 2001  2007  2008  2009  2010 2011 2012  
Seed cotton: 
 Production (thousands of tonnes) 164.5 115.2 71.0 35.1 52.6 78.9 118.0 
 Producer price (CFAF/kg)b 164 160 180 180 180 180 215 
 Yield (kg/ha) .. .. 577 433 347 399 406 
Cotton lint: 
 Exports (thousands of tonnes) 55.6 56.2 46.8 14.4 21.4 32.0 .. 
 Export price (CFAF/kg) 1,023.8 644.4 675.9 627.7 1,315 912 .. 
Results of Coton Tc had (CFAF billion): 
 Rebates c -5.0 -2.5 -2.4 -3.1 .. .. .. 
 Net profit -19.5 -18.0 -1.5 -8.1 .. .. .. 
 State subsidies 3.5 12.0 10.0 7.5 .. .. .. 
a Data in agricultural seasons (year n co rresponds to agricult ural season n/n+1). 
b This is the price of top-grade cotton (representing about 94% of production). 
c A negative rebate indicates a State outlay. 
Source: Government services; and Fauba Padacke (2010). 
4.21.  The price paid to producers of seed cotton is set according to a two-part formula: 
a component indexed to the world price of cotton lint (Cotlook index A), and a component that takes account of the value added to the seed cotton. At the start of the season, a provisional price is calculated on the basis of forecasts of the international price of cotton lint.
103 When the seed 
cotton is purchased, the company makes an initial payment to producers based on that provisional 
price. At the end of the season, if the provisiona l price turns out to be less than the observed 
price, a rebate is paid to producers. Otherwise, the State compensates the company 
for the revenue loss suffered. During the period 2001-2009, the actual price was always below the 
price determined by this mechanism, and cumulative negative rebates (State disbursements) amounted to over CFAF 28 billion. 
4.22.  The subsector's weak performance reflects numerous constraints, particularly soil quality, 
the dilapidated state of the road network, hi gh energy costs, and the weakness of farmer 
organizations.
104 Despite receiving government subsidies, inputs and other agricultural materials 
are expensive in relation to the yields obtained. Owing to difficulties faced by the ginning company 
in accessing credit, inputs and seeds tend to be supplied to the producers at the last minute. 
The same is sometimes true of the collection of the seed cotton and payment practices, which forces producers to store cotton in precarious conditions, potentially leading to a loss 
of quality. There are also external constraints, such as plummeting cotton prices on the world 
market and the weakness of the dollar against the euro, the currency to which the CFA franc is indexed. 
4.23.  The survival of the cotton sector depe nds on various types of government support. 
In the period 2001-2011, financial assistance from the State was estimated at over CFAF 100 billion.
105 The Government also supports the sector by guaranteeing bank credit 
to the ginning company to finance each agricultural season. 
4.24.  With a view to relaunching the sector, in 2011 the State embarked on a restructuring 
process that led to the dissolution of CotonTchad and the creation of a new company, CotonTchad SN. To enable the new company to start activities on sound financial foundations, 
                                               
102 Sales of cotton lint to the NSTT totalled 300 tonnes in the 2009/2010 agricultural season. 
103 Forecast published by the Internatio nal Cotton Advisory Committee (ICAC). 
104 Fauba Padacke (2010). 
105 Communication by Chad in the framework of the Director-General's Consultative Framework 
Mechanism on Cotton (MCCDGC). WTO document WT/CFMC/37 of 1 November 2012. WT/TPR/S/285 • CHAD 
- 410 - 
  the State agreed to write off the previous company's liabilities, estimated at over CFAF 80 billion, 
and took up 51% of the shares in the new company.106 The new enterprise aims to double 
the area sown over the next three seasons, to reach a level of 400,000 hectares in 2015/2016. 
In addition to actions undertaken within the PNSA, specific measures to support the sector are 
envisaged, such as better observance of the sched ule for the season in terms of supplying inputs, 
collecting the harvest and paying; and reorganizi ng producers into cooperative enterprises. 
4.25.  In relation to byproducts, the seed cotton produced by the ginning process is used 
by Direction de l'huilerie savonnerie (DHS), a subsid iary of the ginning company, to produce cotton 
oil and cake. Despite a shelling capacity of 100,000 tonnes of cotton seeds per year, the annual utilization rate varies between 24% and 61%, depe nding on the availability of the raw material. 
Initially a branch of activity of CotonTchad, DHS was privatized in 2001 before being reabsorbed 
by CotonTchad in 2006. 
4.26.  Prior to the privatization of DHS, there was no market for seed cotton: it had been supplied 
directly by CotonTchad. Privatization created a de facto market for seed cotton, which also 
serves demand from abroad, mainly from Nigerian operators. During the 2007/2008 season, 
foreign demand absorbed 17.1% of seed cotton pr oduction and threatened the survival of DHS. 
As a result, its export was prohibited in the following season.
107 
4.27.  The CET rate on cotton is 10% (common report, Chapter 3). The fact that it is progressive 
in the textile and clothing industry108 could undermine the competitiveness of local 
finished products. 
4.28.  Chad is one of the co-sponsors of the WTO Sectoral Initiative in Favour of Cotton 
(common report, Chapter 3). 
4.1.3.3  Sugar 4.29.  While the sugar market is organized at the community level (common report), 
nationally it is centred on Compagnie sucrière du Tchad (CST) an enterprise that is owned 82.2% 
by SOMDIAA, 8.9% by the Chadian State and 8.9% by Société sucrière du Cameroun. It produces about 35,000 tonnes of sugar per year. Unlike the cotton sector, the sugar cane is grown by CST. 
4.30.  The sector is threatened by illegal imports, mainly from Sudan. In theory, importers can 
apply for a one-off reduction in customs duties, which is calculated on the taxable value of the sugar and agreed upon for a specified volume of imports. Only the CST has requested and obtained this reduction in the past, however. 
4.1.3.4  Gum arabic 
4.31.  Chad is the world's second largest exporter of gum arabic after Sudan. Exports are 
estimated at about 20,000 tonnes per year, for a potential production of between 300,000 
to 670,000 tonnes. Gum arabic is the country's fourth most important export product and probably 
the main source of income for the half million people in rural areas who are employed to produce and/or collect it.
109 In 2012, sector output represented abou t 7% of GDP, and the leading export 
firms were: SCCL, ABHS, SANIMEX, the Al Béchir group and Al Wihda. 
4.32.  Participants in the sector (producers/c ollectors, intermediary traders and exporters) 
are members of the Chadian Association for the Promotion of Gum Arabic (ATPGA). Created in 1999, this association aims to raise awareness among participants and to disseminate 
new production techniques to improve the quality of the gum produced. It often encounters 
operational problems. Prices are set freely by producers/collectors. 
4.33.  With support from the European Commission, in February 2010 Chad launched 
the Gum Arabic Sector Support Programme (PAFGA). Planned to last three years, the PAFGA aims 
                                               
106 Jeune afrique (2012). 
107 Order No. 004/PR/PM/MCI/CAB/2009 of 5 March 2009. 
108 The average CET rate on textiles and clothing (2 -digit SITC definition) is  11.9% on non-processed 
products, 17.8% on semi-finished pr oducts, and 27.9% on finished prod ucts (common report, Chapter 3). 
109 World Bank (2009). WT/TPR/S/285 • CHAD 
- 411 - 
  to organize the sector more effectively, enhance the quality of the gum produced, and increase 
production, while ensuring sustainable resource use. 
4.1.3.5  Fishing 4.34.  Fishing is practised in the country's num erous water bodies: rivers (including the Chari 
and the Logone), lakes (Tchad, Léré, Fitri, Iro and others) and secondary watercourses 
and watering points. Annual output fluctuates between 50,000 and 100,000 tonnes, depending on weather conditions, for an estimated potential of 250,000 tonnes. According to the Rural Sector 
Permanent Monitoring Unit, about 17,000 professi onal fishermen and 150,000 seasonal workers 
operate on the main lakes.
110 The professional fishermen mainly come from Nigeria, Mali, Ghana 
and Benin. It is estimated that about 300,000 people  practise fishing and related activities (drying, 
smoking, marketing, etc.). According to the National Investment and Export Agency111, about 44% 
of output is exported in the form of dried or smoked fish to Nigeria and other CEMAC countries 
(Cameroon and the Central African Republic). 
4.35.  The conservation and management of fish and aquaculture resources are governed 
by Law No. 014/PR/2008 of 10 June 2008 establishi ng the forestry, fauna and fisheries regime. 
Under this law, the exercise of fishing activiti es requires a fishing permit, for which there are 
two categories: category A, reserved for nationals, and category B for foreigners. The fishing 
permit is valid for a renewable one-year period  and is issued following payment of a fee set 
at CFAF 12,500 for nationals, and CFAF 75,000 for foreigners. 
4.36.  The average CET rate on fisheries products  (WTO definition) is 23.8%; and these products 
also suffer additional import and export levies (Chapter 3). The sale of fish on the market requires 
a movement authorization, which is issued subject to a fee (payable to the State). The export levy 
is CFAF 100/kg for fresh or dried fish, and CFAF 200/kg for smoked fish. 
4.37.  The Fisheries Development Project (PRODEPÊCHE) is a tool of government policy in this 
sector. Launched in 2006, it aims to sustainably improve living standards for participants 
through capacity building, development and rational management of fish resources, 
and marketing support. 
4.38.  Aquaculture is poorly developed in Chad. Lake Chad has a heavy concentration of spirulina 
(blue algae) but its exploitation is still at an embryonic stage. Between 2007 and 2010, 
in the framework of the "spirulina project", th e Government undertook a number of actions with 
a view to exportation: provision of equipment production sites, introduction of new techniques, 
particularly in relation to hygiene, pack aging and marketing; and the implementation 
of a Chadian spirulina brand label. The CST would also be interested in industrial production of spirulina and in 2008 it conducted an experiment that resulted in a better quality product. 
Spirulina is not yet being commercially exported, however. 
4.1.3.6  Forestry products 4.39.  The forestry management and conservation regime is contained in Law No. 014/PR/08 
of 10 June 2008 establishing the forestry, fauna and fisheries regime. This Law supplements 
Law No. 14/PR/98 of 17 August 1998 defining genera l principles of environmental protection. The 
g o a l  o f  g o v e r n m e n t  p o l i c y  i s  t o  m a k e  u s e  of these resources for development and poverty 
reduction, while conserving their biological diversity. 
4.40.  Under the Law, any commercial exploitation of forests is subject to the payment of charges 
and taxes. The Law envisages incentive measures for reforestation. Forest area concessions may be granted for up to 20 hectares for private individuals and 100 ha for companies, and may be 
agreed upon with individuals or companies subjec t to reforestation or regeneration requirements. 
                                               
110 Online information from the Rural Sector  Permanent Monitoring  Unit. Viewed at: 
http://www.cellule-permanente.org/secteur_rural/?page=act_peche [13 December 2012]. 
111 ANIE (2012). WT/TPR/S/285 • CHAD 
- 412 - 
  4.41.  The marketing and transportation of timber is governed by a 1994 law112, under which the 
transportation of wood to large population cent res is an activity reserved for traders holding 
a "trader-transporter" professional card. A fore st tax is levied on the transport of timber. 
4.2  Mining, energy and water 
4.2.1  Mining products 
4.42.  Chad has gold, iron, bauxite, salt, natron, and other minerals that can be used 
in construction, such as limestone, kaolin, marble and diatomites. The mineral deposits currently 
being worked are alluvial gold (on a small scale), natron, gravel and sand. 
4.43.  The Mining Code, which is unchanged since the previous TPR113, regulates prospecting, 
research, exploitation, possession, transportation and processing of mineral or fossil substances, except for liquid or gaseous hydrocarbons. Under the Code, the State owns natural deposits 
and mineral substances contained in the nation's soil and subsoil. Mining permits are required 
to engage in prospecting, research and exploitation activities. 
4.44.  The various mining rights, and the conditio ns under which they are issued by the Ministry 
responsible for mines and geology, are shown in Table 4.4. The operator must deposit a candidacy 
dossier with the Ministry, containing a work programme and provisional budget for the first year, as well as a draft mining agreement in the ca se of foreign applicants. All mining rights 
are renewable. 
Table 4.4 Features of the various mining rights
 
Type of permit Activity Area/means Durati
on Duties and taxes (in CFAF) 
Authorization 
for gold panning Exploitation of gold 
deposits Alluvial or 
eluvial deposits 2 years Issuance fee 100,000 
Renewal 100,000  
Area tax (km2/year)  5,000 
Authorization 
for prospecting Non-exclusive 
prospecting Surface works 1 year Issuance fee 100,000  
Renewal 200,000  
Small mine operating permit Exploitation of all 
types of mineral deposit Exploitation by 
non-industrial means 2 years Issuance fee 100,000 
Renewal 100,000
 
Area tax (km2/year) 5,000 
Permit to exploit 
various 
materials  Open-cast 
exploitation The perimeter 
concerned 5 years Issuance fee 100,000 
Renewal 100,000  
Area tax (km2/year) 5,000 
Research permit All research work 
aimed at defining deposits Surface and 
underground work between 25 and 200 km² 5 years Issuance fee 100,000 
Renewal 200,000
 
Area tax (km2/year) 5,000 
Exploitation 
permit Development of a 
mine, including 
production facilities As specified by 
the research 
permit 25 
years Issuance fee 200,000 
Renewal 300,000  
Area tax (km2/year) 100,000 
Sources: Online informatio n from the Ministry of Mines and Geology, viewed at: 
http://www.dmg-tchad.org/legislations.php [27 February 2013]; and Annex 1 to the Mining Code. 
4.45.  The holders of mining rights have to pay the following fees: a flat fee on issuance of the 
right; an annual fee in an amount based on the area exploited; and an ad valorem  duty 
on exports, at a rate between 2% and 5% depending on the substance being mined. 
4.46.  The Mining Code provides for customs duty exemptions, which may vary depending on the 
agreement reached (Chapter 3). Mining agreements with Gazprom (gold and uranium) and Chad mining services (uranium) are currently being executed. 
                                               
112 Law No. 36/PR/94 of 3 December 1994, organizing  the marketing and transportation of timber 
in large population centres and the applicable taxation. 
113 Law No. 011/PR/95 of 20 June 1995 establishing the Mining Code in the Republic of Chad, 
and Decree No. 821/PR/MMEP/95. WT/TPR/S/285 • CHAD 
- 413 - 
  4.2.2  Petroleum products 
4.2.2.1  The upstream oil sector 4.47.  Chad's proven oil reserves were estimated at 1.5 million barrels in late 2011.
114 
Starting in 2003, crude oil output reached a peak of 173,000 barrels per day in 2005, before 
declining gradually to 114,000 barrels in 2011. With new operators entering the sector and new 
oilfields coming on stream, output can be expect ed to recover in coming years. According to 
information provided by the authorities, oil re venues were estimated at US$1.8 billion in 2012. 
4.48.  The Ministry of Energy and Petroleum is responsible for the design, coordination, 
implementation and monitoring of government po licy in the energy and hydrocarbons sphere. 
In the hydrocarbons sector, it relies on the So ciété des hydrocarbures du Tchad (SHT), the State 
enterprise created in 2006. This company is responsible for implementing industrial 
and commercial policy in the hydrocarbons sector , and can intervene in the various activities 
(prospecting, exploitation, refining, marketing, etc. ) by taking direct or indirect equity stakes. 
4.49.  Since the previous TPR, the regulatory framework applicable to hydrocarbons-related 
activities was revised substantially by Law No. 006/PR/2007 of 2 May 2007 in relation 
to hydrocarbons, and by the 2010 ordinance amending this.115 These laws cover activities relating 
to oil and gas prospecting and exploitation, and the re fining and distribution of oil products, as well 
as related works and installations. They also  contain rules on environmental protection. 
4.50.  Under the hydrocarbons law, hydrocarbons substances and resources existing either 
underground or on the surface are the exclusiv e property of the State. Related activities, 
including research, exploitation, and pipeline tran sport, require authorization or a permit issued 
by the Ministry of Energy and Petroleum. The various types of authorization/permit are shown 
in Table 4.5. 
Table 4.5 Authorization and permits for enga ging in hydrocarbons  related activities  
Authorization Selected criteria Duration of the authorization 
Authorization for prospecting 
(non-exclusive right) Fee payable to the Treasury 2 years, 
renewable once 
Research permit/ 
exclusive research authorization Fee payable to the Treasury 
and bank good-performance 
bond 5 years, 
renewable once 
Exploitation permit/ Authorization for exclusive exploitation  Holding a research 
authorization 25 years 
Authorization for transport 
and construction of pipelines Holding an exploitation permit On expiry of the exploitation 
permit or following recovery 
of investment costs 
Source:  Law No. 006/PR/07 on Hydrocarbons and Ordinance No. 001/PR/10. 
4.51.  Mining rights may be granted under a concession contract or a production-sharing 
agreement. In a concession contract, the right holder has exclusive rights for research and 
exploitation of hydrocarbons within the specifie d area. The contract holder assumes all risks, 
as well as the financing of the operations. Nonetheless, the State, through SHT, is entitled to an initial share. An exploitation permit may be granted to the operator if the research activities lead 
to the discovery of a commercially exploitable outcrop. In this case, SHT is entitled to an additional 
share of exploitation activities. SHT pays for its share by a levy on part of the production due to it. Since 2011, SHT's share in production-sharing agreements has been 25%. 
                                               
114 Online information from Brit ish Petroleum. Viewed at: 
http://www.bp.com/liveassets/bp_internet/globalbp/globalbp_uk_english/reports_and_publications/statistical_energy_review_2011/STAGING/local_assets/spreadsheets/statistical_review_of_world_energy_full_report_2012.xlsx [27 February 2013]. 
115 Ordinance No. 001/PR/10 of 30 September 2010, approving the production-sharing agreement in 
respect of activities involving research and exploitation  of liquid or gaseous hydroc arbons in the Republic of 
Chad, and amending and supplementing the prov isions of Law No. 006/PR/2007 of 2 May 2007 on 
hydrocarbons. WT/TPR/S/285 • CHAD 
- 414 - 
  4.52.  In a production-sharing agreement, SHT is entitled to a share of the research work, 
and may opt for an additional share in the developm ent and exploitation works. It is not required 
to pay any fee during the research phase, and may decide to assume part of the expenses of development work and exploitation. In an ag reement of this type, the oil company and the 
State, represented by SHT, share production. The contract-holder's share of production is free 
of all customs duties and taxes. A model contract to be used as the basis for negotiating all production-sharing agreements was approved in 2010. 
4.53.  Oil contracts may be awarded through inte rnational tender. The award or transfer of a 
contract to a company other than the winning bidder requires prior authorization by the Minister responsible for hydrocarbons. The party awarded the contract must pay the State a fee of 1% of the amount of the transaction. At the end of the oil contract, or a when the investments have 
been recovered, the infrastructures are transferred to the State without charge and free of all 
pledges, collateral or mortgage. The infrastruc tures must be operational and in good working 
condition. If the State renounces this, the costs of abandonment and rehabilitation of the sites are 
borne by the contractor. 
4.54.  The contractor is required to establish its head office in Chad and maintain its accounts 
there. It must also take out sufficient insurance policies to cover its activities against risks 
(including environmental risks) and demonstrate financial capacity to cover such risks. 
These insurance policies are contracted in accordance with Chadian law and practices currently in force in the oil industry. 
4.55.  Apart from the taxes and charges envisaged in the General Tax Code, the holder of an oil 
contract is subject to an area royalty and a production levy. The rates and modalities for paying 
these are specified in the oil contract. The Hydrocarbons Law sets rates for the production levy at between 5% and 10% for natural gas, and betwee n 14.25% and 16.5% in the case of crude oil. 
The State may choose between receiving the levy in  kind or money. The company tax rate is 
subject to negotiation in the framework agr eements, and must be set between 40% and 75%. 
The holders of oil contracts benefit from the advantages specified at the community and national 
levels (Chapter 3). 
4.56.  The main projects currently being implem ented are those of Doba and the "Rônier" oil 
project. The latter is governed by an ag reement signed in 1988, last amended in 2000.
116 
The project is being operated by a consortium fo rmed by Esso Exploration and Production Chad 
Inc. (a subsidiary of Exxon Mobil), Petronas an d Chevron. The oil is transported along a 1,089 km 
pipeline to the port terminal of Kribi (Cameroon). Tchad Oil Transportation Company (TOTCO)117 
and the Cameroon Oil Transportation Company (COTCO) own and operate the Chadian 
and Cameroonian portions of the pipeline, respecti vely. Chad owns 8.04% of the capital of TOTCO, 
and 2.73% of COTCO. Exploitation initially focused on the deposits at Komé, Bolobo and Miandom, i.e. an area of 340 km
2; but following the granting of seven new concessions, the consortium 
currently covers a total surface area of 565.8 km2. 
4.57.  The "Rônier" project involves the Rônier  and Mimosa oil fields. The permit is held 
by the China National Petroleum Company International (Chad) Ltd (CNPCIC). This project entails the construction and exploitation of these oilfield s, construction of the Djermaya refinery, as well 
as a 311 km pipeline linking the oilfields to the re finery. The pipeline is also expected to transport 
crude oil from the Sédigui and Koudalwa fields to  the refinery. Work began in July 2009, and the 
refinery entered into operation three years later in July 2012. It is managed by the Société 
de raffinerie de N'Djamena (SRN), in which the Chadian State (through SHT) holds a 40% stake, 
and CNPCIC owns 60%. Located at Djermaya, 35 km from N'Djamena, it has a processing capacity of 20,000 barrels, which could be expanded to 60,000 barrels per day. Its annual production 
is estimated at close to 700,000 tonnes of petrol and kerosene, 20,000 tonnes of diesel fuel, 
                                               
116 The Agreement was approved through Ordinance No. 041/PR/88 of 30 December 1988, as amended 
by Decree No. 145/PR/MMEP/2000 of 7 April 2000, governin g the transfer of rights and obligations held 
by Shell and Elf to Petronas and Chevron. 
117 Framework Agreement, signed on 10 July 1998 by the Republic of Chad and Tchad Oil Transportation 
Company S.A. (TOTCO), approved by Law No. 015/PR/98. WT/TPR/S/285 • CHAD 
- 415 - 
  25,000 tonnes of polypropylene, 60,000 tonnes of liquefied petroleum gas, and 40,000 tonnes 
of fuel oil.118 
4.58.  Three production-sharing agreements, granti ng exclusive exploration and exploitation rights 
over an area of 25,776 km2 have been signed with Griffiths Energy International Ltd.119 
One of the entities of this company, Petrochad (Mangara), is currently developing two oilfields 
(Mangara and Badila) with estimated daily production of between 25,000 and 50,000 barrels of crude. A pipeline to the TOTCO transport system, currently under construction, should make it 
possible to export this oil. Production-sharing agreements have also been signed with SP Mining; 
ERHC Energy (BVI) Ltd; Global Petroleum; Grou pe TCA International S.A. GTI; SAS Petroleum; 
United Hydrocarbon Chad Ltd; and Petra BV. 
4.2.2.2  The downstream oil sector 
4.59.  Operations involving the import, export, and transportation of petroleum products are, 
in principle regulated by a 2012 Ordinance.
120 Under the law, engaging in any of these activities 
requires prior authorization from the Minister resp onsible for trade. The operator must be a legally 
established Chadian entity, have commercial status  pursuant to the provisions of the OHADA, 
post a bond to cover its financial liabilities and take out civil liability insurance to cover the risks of the activities for which the authorization is requested. The authorization is granted for 
a renewable three-year period. In practice, these provisions have not yet been applied, however, 
and a certificate from the Ministry responsible for petroleum and another from the ANIE are sufficient to exercise any one of these activities. 
4.60.  Several operators entered the market when refinery activities began. Nonetheless, 
only three operators have adequate marketing and storage structures: Total Marketing Tchad, 
Oil Lybia, and Société de produits pétroliers. 
4.61.  Enforcement of the regulation is the resp onsibility of ARSAT. Created in 2012, ARSAT has 
the following missions
121: to regulate, control, and monitor the standards and activities of sector 
participants and operators; to organize import and export activities; and to ensure observance of the principle of equal treatment of users for the enterprises of the sector. ARSAT's resources 
come from State subsidies and the levy on the export of petroleum products at a rate 
of CFAF 2.5/litre of fuel. 
4.62.  At the time of export, a bond is requ ired to prevent resale in national territory. 
Import is only allowed with a view to re-export, or in the event of a threatened breakdown 
in domestic market supply by local production. In that case, authorization is required from 
the Minister responsible for trade. 
4.63.  The regulation requires the constituti on of a buffer stock of petroleum products 
corresponding to at least 30 days' domestic consumption. The State may put the management 
of the stock in the hands of a public entity or a company majority owned by the Government. 
Where necessary, the Minister responsible for trade may at any time suspend exportation 
and re-exportation activities. Petroleum product warehouses and depots must be authorized 
as such by the customs or trade authorities. 
4.64.  The selling prices of petroleum products were liberalized in 2001 but were made subject 
to control once again after the refi nery came on stream (Table 4.6). 
                                               
118 CNPCIC is currently developing two other fields  (Great Baobab and Pros opis), for international 
export. A pipeline connecting to the TOTCO transportation network is under construction. 
119 Online information. Viewed at: http://www.griffithsenergy.com/s/operations.asp?ReportID=486939 
[27 February 2013]. 
120 Ordinance No. 006/PR/12 of 7 February 2012, concerning operations of exportation and importation 
of petroleum products. 
121 Ordinance No. 003/PR/2012 of 7 February 2012, creating the Downstream Oil Sector Regulatory 
Authority of Chad (ARSAT). WT/TPR/S/285 • CHAD 
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  Table 4.6 Domestic prices of petroleum products, January 2013  
(CFAF per litre, unless otherwise indicated) 
 Price of crude oil 
supplied to the 
refinery Ex-refinery price Maximum sale price at 
the pump a 
Crude oil US$68/barrel n.a. n.a. 
Petrol n.a. 381 480 
Kerosene/lighting oil n.a. 411 375 
Diesel fuel n.a. 403 525 
A1 jet fuel n.a.  575 
a  Prices at the pump are as recorded in the capi tal. In other parts of the country, a transportation 
margin varying between CFAF 30 and CFAF 170 is authorized. 
Source:   Information supplied by the national authorities and online information viewed at: 
http://shtchad.net/prix_carburants.php [27 February 2013]. 
4.2.3  Electricity and water 
4.2.3.1  Electricity 
4.65.  Chad has one of the lowest electrification rates in the world, with just 3.7% 
of the population covered in 2011.122 Access to electricity is basically confined to the capital. 
4.66.  The generation, transportation and distribution of electricity are governed 
by Law No. 014/PR/99 of 15 June 1999, which consid ers these activities to be public services 
and a responsibility of the State. Nonetheless, their operation may be delegated to a principal operator and/or several independent operators. The State may also grant a special dispensation for the production and marketing of electricity to  any private individual or legal entity. A prior 
declaration is required for this. The delegation contract defines the period during which the 
principal operator has exclusive distribution rights in respect of customers located in the zones covered by the electricity grid. 
4.67.  The import and export of electricity are liberalized, but the authorities may temporarily 
prohibit these activities if necessary "for the protection of the operating network, the quality 
of electric power supplied to customers, the security of persons and assets, and with respect to the 
supply policy defined by the State". The import of  equipment and materials associated with these 
activities requires a certificate of conformity. 
4.68.  The law also created the Electricity Sector Regulatory Authority. Under the Ministry 
responsible for electricity, this body has mission s that include overseeing implementation of the 
regulations, and proposing electricity rates to the Government, along with any necessary 
institutional or regulatory changes. The regulatory body is not operating however. 
4.69.  The Société nationale d'électricité (SNE), formerly Société tchadienne d'eau et 
d'électricité (STEE), has served as the Government's agent in relation to the public electricity 
service since 2010.
123 The delegation agreement gives it exclusive rights to transport and 
distribute electricity, but not to generate it. The company has always faced marketing problems, 
aggravated by high fuel costs and a low recovery rate resulting from illegal connections. 
As a result of the obsolescence of its equipmen t and the weakness of its distribution network, 
demand is far from being satisfied. The distribu tion grid has not undergone any major expansion 
for decades. Power outages are frequent and, in the capital city, most economic agents 
and households have had to equip themselves with their own generators. 
4.70.  Electricity prices and their revisions must be approved by ARSAT and officially authorized 
by the Government. The review mechanism is specified in the delegation agreement. Electricity 
selling prices are set by an order issued by the Minister responsible for trade and, in principle, 
are uniform throughout the country. The most recent review reduced electricity rates 
                                               
122 Republic of Chad (2013a). 
123 Decree No. 281/PR/PM/11 of 5 April 2011 designating Société nationale d'électricité as the main 
delegated supplier of the electricity service, and transferring to that company the assets needed to fulfil 
its mission. WT/TPR/S/285 • CHAD 
- 417 - 
  by about 37% and simplified the pr ice structure into two tranches124: for domestic use 
(low voltage), 1 kilowatt hour (kWh) costs CFAF 85 for the first tranche (0 to 150 kWh), and CFAF 125 for the second. For other types of consumption, there is a single tranche invoiced at CFAF 125 per kWh. Nonetheless, these prices are high compared to those of neighbouring 
countries such as Cameroon and the Central African Republic. 
4.71.  The Government's aim is to expand access to electricity to 5% of the population by 2015. 
A number of initiatives are currently under way: 
 construction of a high voltage line to transport part of the energy produced by the 
Djermaya refinery facilities to the capital; 
 construction of an additional 60 MW capacity power plant in N'Djamena; 
 implementation of a solar power electrification project, the pilot phase of which is 
currently being implemented in about 20 localities in the Doba oilfield zone; 
 launch of an electrification project at five rural sites based on mini solar power plants; 
the tender is currently in the process of being awarded; and 
 actions to obtain financing for an interconnection project with Cameroon.
125 
4.72.  At the institutional level, Chad has created an Agency for Radiation Protection and Nuclear 
Safety (ATSRN)126, and a Renewable Energies Developmen t Agency (ADER). A draft Electricity 
Code is currently being approved. 
4.2.3.2  Water 4.73.  Access to drinking water remains a ch allenge for most of the Chadian population, 
particularly in rural areas. Although major public investments have made it possible to raise the 
access rate from 21% in 2000 to 46% in 2011, this is still far from the target of 60% by 2015 
adopted under the Millennium Development Goals (MDGs). 
4.74.  The 1999 Water Code was amended by Ordinance in 2011.
127 It defines use modalities for 
river, lake, and underground water bodies, and those relating to the exploitation and management 
of hydraulic works. The Code considers all water resources as a public good, for which exploitation requires prior authorization. The Water Code specifies water must be used in such a way as to 
encourage private initiative as well as competition. The charge must cover all operating costs, 
including the operator's profit margin, the tax or rental for goods supplied to the operators, and any other government levies. The operator must submit its rates to the Regulatory Authority, which first approves them and then submits them to the Government for authorization. 
4.75.  Implementation decrees have been issued in  the following areas: procedures for controlling 
and monitoring the quality of water intended for human consumption
128; model contracts for 
delegating the public drinking water service129; legal framework for water management advisory 
and support units130; perimeter of jurisdiction for the management of public water services131; 
technical and regulatory specifications for village level water works.132 
                                               
124 Order No. 3951/PR/PM/MCI/2012 of 20 August 2012, on the pricing of electricity produced 
and distributed by the SNE. 
125 The project forms part of the subregional Central African Energy Pooling In itiative (PEAC). A draft 
agreement between the two countries was signed in 2007, and financing from the African Development Bank is pending. 
126 Law No. 002/PR/2008 of 6 January 2009, creating a Chadian Agency for Radiation Protection 
and Nuclear Safety (ATRSN). 
127 Ordinance No. 0186/PR/2011 of 1 March 2011, amending and supplementing Law No. 016/PR/99 
of 18 August 1999 on the Water Code. 
128 Decree No. 616/PR/PM/ME/2010. 
129 Orders No. 28/MEE/DG/02 and No. 29/MEE/DG/2002. 
130 Order No. 2869/ME/2007. 
131 Order No. 01/PR/MHVP/09. 
132 Order No.26/ME/2010. WT/TPR/S/285 • CHAD 
- 418 - 
  4.76.  Approved in 2003, the Water and Sanitation Master Plan (SDEA) forms the operational 
framework for implementing the Government's water policy. It aims to sustainably improve access to drinking water and sanitation, and to promote ra tional and fair use of pastoral and agricultural 
water resources. It organizes the water supply sector into two subsectors: urban, and semi-urban 
and rural. Urban water supply covers a dozen urban centres, and is operated under concession 
by the Société tchadienne des eaux (STE), fo rmerly STEE. N'Djamena is the largest centre, 
accounting for 65% of production and over half of all subscribers.
133 Water production by STE 
depends on energy availability. As in the electricity sector, the distribution network is obsolete 
and has not undergone a major extension for decades. 
4.77.  Water policy in semi-urban and rural areas is the responsibility of the Water Department 
and involves the delegation of management and maintenance of water points to local populations. 
Depending on the size of the localities in questi on, the State equips them with manual, thermal 
or solar pumps, in exchange for a financial contribution on their part. Equipment maintenance, repair and renewal are financed by the local populations. The pumps are managed by village 
associations or user associations. In more heavily populated zones, such as semi-urban areas, 
pump management may be outsourced to a private operator. 
4.78.  Water prices, by tranche, have not been changed since 1984.
134 The price per m3 is 
CFAF 150 for the social tranche (monthly consumption below 15 m3), CFAF 230 for consumption 
between 15 and 1,000 m3, and CFAF 110 for consumption above 1,000 m3.135 The social tranche 
is VAT-exempt. In theory, prices are applicable throughout national territory; but in practice, they are generally above this scale and vary across rese llers. As a result, populations that have access 
to the most subsidized water (produced by STE) are not necessarily low-income groups. 
4.3  Manufacturing 4.79.  The manufacturing sector in Chad is characterized by a modest industrial fabric, which 
makes only a minor contribution to economic activity. Its contribution to GDP has been less 
than 2% since the most recent TPR, and there has been a downward trend in production in this sector (Chart 4.1). 
4.80.  There are numerous constraints on the ma nufacturing sector, including the erratic supply 
of highly-priced energy and water, the poor  quality and high cost of transportation 
and communications services, and the high cost of - and problematic access to - other inputs, including raw materials and financing. 
                                               
133 World Bank and Republic of Chad (2011). 
134 African Development Bank and OECD (2007). 
135 The prices in force in the city of Abéché are currently substantially higher (at least double) and use 
a more detailed scale. Fire hydrants in that city are charged a flat rate of CFAF 290/m3. WT/TPR/S/285 • CHAD 
- 419 - 
  Chart 4.1 Trend in the industrial production index and its components, 2005-2011 
050100150200250300
2005 2006 2007 2008 2009 2010 2011
Glob al
index Extractive  
industries  Food 
industries  Textile  
industries  Energy  Index (base year: 2005)  
 
Source:  National Institute of Statisti cs, economic and demographic studies. 
4.81.  The Government's industrial policy aims to develop and reorganize agrifood processing 
units136, and a number of production units in the manufacturing sector have started activities. 
In the framework of the TEAM 9 cooperation programme (Techno-Economic Approach for Africa-India Movement), Chad has made use of a credit line from India to finance the 
following activities: 
a. construction in 2009 of an agricultural equipment and tractor assembly plant 
(Société industrielle de matériel agricole  et d'assemblage de tracteurs (SIMATRACT)); 
b. reopening in 2010 of a textile factory (Nouvelle société tchadienne des textiles, 
(NSTT))
137; and 
c. construction in 2011 of a fruit juice factory (Société tchadienne de jus de fruit (STJF)). 
4.82.  Other ongoing projects include the creation  of a reinforced steel industry and a bicycle 
assembly plant. 
4.83.  In the framework of cooperation with China, a cement factory with a daily production 
capacity of 700 tonnes was built in Baoré and commenced activities in 2011. 
4.84.  An industrial park is being built in Djermaya.138 Covering a 25 km2 area, the park will 
include plastics manufacturing units and a liquefied gas bottling plant. One of the plants is already operational. 
                                               
136 Republic of Chad (2013b). 
137 The NSTT is 40% owned by the Chadian Stat e, 20% by CotonTchad SN and the rest 
by private operators. 
138 This industrial park is the outcome of an agreement signed in 2010 with  Soluxe International 
a company established under Chinese law. WT/TPR/S/285 • CHAD 
- 420 - 
  4.4  Services 
4.4.1  Transport 4.4.1.1  Road Transport 4.85.  Chad has a road network of about 40,000 km. Given the country's large area, road 
density is weak and very variable across regions - ranging from 6.4 km per thousand km
2 
in the Saharan zone to over 40 km per thousand km2 in the Sudanian zone. In the rainy season, 
part of the road network is rendered unusable, whic h forces up transport costs and further isolates 
certain regions. 
4.86.  The national transport strategy serves as a general framework for government policy in this 
area.139 For the period 2000-2010, the strategic objectives were: to open up the country both 
internally and externally, thereby reducing transportation costs; to maintain minimum levels 
of accessibility to all regions of the country, particularly in the rainy season; to further the process 
of sector liberalization and modernization of its management, and to develop rural infrastructure and local modes of transport. Implementation of th e strategy made it possible to improve the road 
network considerably, with the paved network gr owing from 650 km in 2005 to 1,602 km in 2011. 
A new strategy for the period 2011-2020 was validated in March 2012. 
4.87.  Engaging in commercial transport activity re quires a transporter's licence, which is issued 
by the offices of the Ministry responsible for transport and is renewable each year. The fees 
payable vary according to the type of vehicle.
140 In the city of N'Djamena, 368 public freight 
carriers and 78 public passenger carriers had at least one licence in 2011.141 
4.88.  Cabotage is banned in theory, but is a frequent practice in certain eastern regions 
of the country which rely heavily on trade with Sudan. 
4.89.  Merchandise transport rates are negotiated freely between customers and carriers. 
For urban passenger transport, fares are, in princi ple, fixed by the transport unions, and approved 
by the Ministry responsible for transport. A comp ulsory vehicle certificate (LVO) is required for 
all transport of more than 1 tonne of merchandise over distances in excess of 50 km. It is issued 
by the National Freight Office (BNF) upon payment of a fee of 7.5% of the transport invoice 
(in the case of commercial transport) or on the basis of axle load. A portion of this fee is 
transferred to the Road Maintenance Fund (FER) set up in 2000. 
4.90.  Chad does not have a railway, but a project is under way. In March 2011, the Government 
signed a contract with China Civil Engineering Construction Corporation to build a railway 
over 1,344 km long, linking the eastern border with Sudan to the western border with Cameroon, 
at an estimated cost of US$7.5 billion. The construction works have not yet started. 
4.91.  Incoming and outgoing traffic is generally regulated by bilateral agreements. 
With Cameroon142, road haulage is reserved for companies registered in one or other 
of the countries, with a 65% quota for Chadian companies and 35% for Cameroonian companies. Road transport agreements are being negotiated with the Central African Republic and Nigeria. 
4.4.1.2  Air transport 
4.92.  Chad's airport network consists of five main airports, 47 secondary airports and 16 private 
airfields. The N'Djamena international airport, whic h is used for both civil and military purposes, 
is the largest, although it has little traffic (Table 4.7). Another international airport is currently 
under construction.
143 
                                               
139 Republic of Chad (2005). 
140 For example, CFAF 93,000 for vehicles with a capacity of 20.1 tonnes. 
141 Ministry of Infrastructure and Equipment (2011). 
142 Agreement of 13 April 1999 on road transport be tween the Republic of Chad and the Republic 
of Cameroon. 
143 In 2011, the Government launched the construction of a new international airport at Djermaya. 
At a total cost of US$1.5 billion, this airport is expected to provide an attrac tive platform for long haul flights, WT/TPR/S/285 • CHAD 
- 421 - 
  Table 4.7 Statistics on air transport in N'Djamena, 2006-2012  
Year 2006 2007  2008  2009  2010 2011 2012  
Movements (thousands) 3.8 6.4 7.7 8.0 6.5 5.3 3.7 
 Scheduled traffic 1.7 1.6 1.5 1.5 1.7 1.9 1.5 
 Non-scheduled traffic 2.1 4.8 6.1 6.4 4.8 3.4 2.2 
Passengers (thousands) 172.5 173.7 176.7 193.3 198.1 212.4 230.6 
 Scheduled traffic 116.4 126.4 130.6 132.7 149.2 172.7 189.4 
 Non-scheduled traffic 56.0 47.3 46.2 60.6 49.0 39.7 41.2 
Freight (thousands of tonnes) 11.3 11.6 11.9 19.0 14.8 5.9 3.2 
 Scheduled traffic 4.9 5.0 5.6 5.8 7.0 4.4 2.0 
 Non-scheduled traffic 6.4 6.6 6.3 13.2 7.8 1.5 1.2 
Source:  Information provided by the national authorities. 
4.93.  Commercial airports are State-owned and are supervised by the Ministry responsible 
for transport. As in other CEMAC countries, the Agency for Air Navigation Safety in Africa and Madagascar (ASECNA) organizes and manages Chadian airspace, as well as search and rescue services, and terminal assistance. Ground handling, including maintenance, falls within the 
purview of the Régie autonome de handling au  Tchad (RAHAT), a State-owned, independent 
authority. Since 2001, ASECNA has manage d the N'Djamena international airport, 
under a  management concession with the Délégation des activités aéronautiques nationales 
du Tchad, as well as the main airports of Abéché, Faya Largeau and Moundou, 
and 14 secondary airfields. 
4.94.  The Aviation Code has not been amended since Chad's previous TPR.
144 The design and 
implementation of air transport policy, as well as the management of secondary airports, 
is in principle the responsibility of the country's Civil Aviation Authority (ADAC).145 In 2011, 
six companies had authorization and a certificate to operate air transport services: Toumaï Air Tchad, RJM Aviation, Tourma Maïba Airways, Sahara Aéro Service, CHC Chad, 
and MAF Chad. Apart from Toumaï Air Tchad, all other operators are only authorized to make 
flights on demand, to carry out medical evacuations or flights reserved for a limited clientele. The following foreign operators serve the capital N'Djamena with scheduled flights: Air France, 
Asky Airlines, Cameroon Airlines Corporation, Ethi opian Airlines, Kenyan Airways, Royal Air Maroc 
and Sudan Airways. Foreign companies also provide seasonal charter flight services. 
4.95.  Launched in 2004, Toumaï Air Tchad operated scheduled flights to the town of d'Abéché 
until its suspension in July 2012, as well as to the following regional destinations: Bangui, 
Brazzaville, Cotonou, Douala and Lomé. It is 40% owned by the Chadian State, with the rest of the equity being shared between ASECNA an d private Chadian and Cameroonian partners. 
In July 2012, ADAC withdrew its flight certificate following an audit that had identified "serious 
safety problems". It is therefore banned from international flights. Sahara Aéro Service 
and RJM Aviation also had their certificates withdrawn for the same reasons. 
4.96.  Chad participates in many multilateral and regional air transport agreements 
(common report, Chapter 4). It has also signed  numerous bilateral air transport agreements, 
but only two of them (with Sudan and the former  USSR) have been ratified. These agreements 
generally cover the joint operation of airlines by Chadian and foreign companies 
and third- and fourth-freedom traffic rights. Chad has also signed open-skies agreements with 
the United States and Qatar, but has not yet ratified them. 
                                                                                                                                               
and will offer kerosene from the Djermaya refinery at a competitive price. The works have begun and should 
be finished in 2015. Online information from the Office of the President of the Republic of Chad. Viewed at: http://www.presidencetchad.org/affichage_news.php?id=159&titre=%20A [31 January 2013]. 
144 Law No. 032/PR/2000 of 17 May 2000 instituting the Civil Aviation Code. 
145 Law No. 12/PR/2005 of 16 September 2005 creating the Civil Aviation Authority, 
and Decree No. 074/PR/PM/MI/2006 specifying the organizati on and functioning of the Civil Aviation Authority. WT/TPR/S/285 • CHAD 
- 422 - 
  4.4.1.3  River and lake transport 
4.97.  Chad's waterway transport network consists mainly of the rivers Chari (1,200 km) 
and Logone (1,000 km) which are navigable on a se asonal basis, and Lake Chad, which is supplied 
mainly by these two rivers. In 2008, the area of Lake Chad was estimated at 2,500 km2. 
Given its shallow depth, navigation is only possible in small vessels. 
4.98.  Transport activity on this waterway netw ork is very underdeveloped and almost entirely 
informal. There is no management structure to ensure navigability. Waterway transport services 
are generally confined to river crossings by ferry, or operations on dugout canoes with an average 
load of 1 tonne. 
4.4.2  Tourism 4.99.  Chad's tourist attractions include the sand dunes and mountains in the Saharan zone, 
prehistoric remains, thermal sources, lakes (par ticularly those of Ounianga), rock paintings, 
volcanic craters, national parks (Zakouma, Manda and Sena-Oura) and the Mayo Kebbi wildlife reserve. The Ounianga lakes have been a UNESCO World Heritage Site since July 2008.
146 
Tourism is underdeveloped, however. Between 2006  and 2011, the number of arrivals in hotels 
grew on average by almost 11% each year to reach a level of 76,920 (Table 4.8). France and the United States are the main non-African countries of origin for tourist arrivals. Business is 
the main travel motive. 
4.100.  Conditions governing the construction, conversion and operation of tourism establishments 
(accommodation, restaurant services, and travel agencies) are set by Law No. 019/PR/02 of 9 December 2002.
147 The construction of any new tourism establishment must be authorized 
by the Minister responsible for tourism, on the advice of the Inter-Ministerial Technical Commission 
that examines tourism projects. Establishments providing accommodation are, in principle, classified by the competent ministry. Restaurant s are rated according to a fork classification 
scheme and are required to indicate the rating a ttributed to them on all their signs, papers, 
and commercial and publicity material. 
Table 4.8 Number of arrivals in hotels an d similar establishments, by origin, 2006-2011
 
Origin 2006 2007  2008  2009  2010 2011  
Africa 31,422 41,011 39,518 15,615 34,218 51,024 
America 2,859 3,146 3,444 11,453 6,096 3,540 
 United States  3,065 2,431 2,431 2,028 2,253 
Asia 1,645 2,993 4,023 8,849 3,458 9,781 
Europe  9,165 10,903 12,093 23,883 25,316 11,370 
 France  7,593 6,732 7,225 5,240 6,325 
Middle East  887 272 1,494 9,979 2,067 1,205 
Total 46,008 58,325 60,572 69,779 71,155 76,920 
Source: Data provided by the national authorities. 
4.101.  The operation of travel agencies requires a permit issued by the Minister responsible for 
tourism. The legislation distinguishes two types: a permit allowing all types of activity (type A), 
and a more restrictive permit (type B). It also requ ires one of the managers of the enterprise to be 
a Chadian national. Although sector operators are free to set their rates, the application for an operating licence must be accompanied by a list of service charges. 
4.102.  The institutional framework in the sector  includes the Ministry of Tourism and Crafts 
and the Chadian Tourism Office (OTT). Created in  2007, the mission of the OTT is, among other 
things, to oversee actions regulating to tourist activity, produce promotional material and monitor 
training in tourism and hotel services.
148 
                                               
146 Online information from UNESCO. Viewed at: http://whc.unesco.org/fr/list/1400/. 
147 Law No. 019/PR/02 of 9 December 2002 regulating tourism establishments. 
148 Decree No. 012/PR/2007 of 15 June 2007. WT/TPR/S/285 • CHAD 
- 423 - 
  4.103.  A tourism development fee is levied on establishments offering accommodation, 
and also on restaurants, night clubs and casinos.149 
4.104.  In terms of hotel infrastructure, numerous private operators have entered the sector 
since Chad's previous TPR, and there has been a large increase in the number of establishments. 
The State owns two hotels which are operated under management contracts: Sotexho (Novotel) 
and Sonex-Chari (Le Meridien). Two other high-gra de hotels are being built with public funds 
and are set for opening in 2014.150 
4.105.  Under the General Agreement on Trade in Services (GATS), Chad made commitments 
in relation to the hotel business, restaurants, travel agencies and tour operator services.151 
It is a member of the World Tourism Organization. 
4.4.3  Telecommunications and postal services 
4.106.  As in most CEMAC countries, the mobile phone sector has expanded rapidly since 
the previous TPR. Between 2005 and 2010, the number of subscribers more than doubled 
to reach 3.7 million, raising teledensity in the country to almost 32 subscribers per 100 inhabitants 
(Table 4.9). Three operators share this ma rket: Tigo Millicom (formerly Libertis), 
Airtel (formerly Celtel and then Zain) and Salam (a subsidiary of Société de télécommunications du Tchad (Sotel Tchad), the traditional operat or). In 2011, their turnover shares of the 
overall telecommunications sector were 51%, 43% and 5%, respectively, which implies a 
de facto duopoly. 
4.107.  Landline phone services are monopolize d by Sotel Tchad, the traditional operator. 
Although the exclusivity period granted by the le gislation has now expired, no other operator has 
shown interest in obtaining a permit. Sotel Tchad is therefore a de facto monopoly.
152 
Table 4.9 Telecommunications se rvice indicators, 2000 and 2005-2011  
(Number of subscribers per 100 inhabitants) 
 2000 2005  2006  2007  2008  2009 2010 2011  
Fixed telephony 0.12 0.13 0.20 0.31 0.42 0.53 0.46 0.27 
Mobile telephony 0.07 2.15 4.62 8.85 15.02 20.86 25.61 31.80 
Internet 0.01  .. .. .. .. 0.04 .. .. 
.. Not available. 
Source: Online information from the International Telecommunication Union Viewed at: 
http://www.itu.int/en/ITU-D/Statistics/Pages/stat/ default.aspx per cent09 per cent09 per cent09 per 
cent5b27 [27 April 2013]. 
4.108.  Law No. 009/PR/98 provides the sector's regulatory framework. It specifies the rules 
for installation and operation of telecommunications activities and defines the conditions of their 
regulation. It makes a distinction between telecommunications infrastructures and the services 
provided by such infrastructures. The conditions governing the establishment and operation of public telecommunications networks and services, as well as the use of terminal equipment 
and installations, are summarized in Table 4.10. 
                                               
149 Order No. 774/MF/SE/DIT/2002 of 11 March 2002 on application of the Tourism Development Fee. 
150 Online information from the Republic of Chad. Viewed at: 
http://www.gouvernementoftchad.org/fr/index.php?option=com_content&view=article&id=1564:le-premier-ministre-visite-les-chantiers-de-grand-hotel-et-hilton-h otel-de-ndjamena&catid=102:icetabs [27 February 2013]. 
151 WTO document GATS/SC/108 of 30 August 1995. 
152 The most recent attempt at privatization, launched in March 2009, was to have involved the Libyan 
group LAP Green Network acquiring 60% of the capital,  with the Chadian State and employees sharing the 
rest. Nonetheless, that process foundered in the wake of the socio-political troubles in Libya. WT/TPR/S/285 • CHAD 
- 424 - 
  Table 4.10 Authorization and declaration regimes in the telecommunications sector  
Telecommunications network Regime Authority 
 Public networks Authorization, 10 years Competent Minister 
 Independent networks   
 - Internal networks Declaration OTRT 
 - Other independent networks Authorization, 10 years Competent Minister 
Services   
 Telecommunications service Authorization, 5 years Competent Minister 
  - Services provided from a base network Authorization, 5 years Competent Minister 
  - Other services Declaration OTRT 
 Basic telephone services Authorization, 5 years Competent Minister 
 Telephone services usin g hertzian frequencies Authorization, 5 years Competent Minister 
 Telex services Authorization, 5 years Competent Minister 
 Value-added services   
  - Services using the basic network or the radio network Declaration OTRT 
  - Services unit using proprietary radio stations Authorization, 5 years  
Terminal equipment and installations (connected to a 
public network or radio installations) Authorization, 5 years OTRT or authorized 
laboratory 
Source: Law No. 009/PR/98 of 17 August 1998 on telecommunications. 
4.109.  In Chad, the universal phone service incl udes the following: the routing of telephone 
communications from or to subscription points, the routing of emergency calls free of charge, 
the provision of information services and a telephone directory, whether in printed or electronic form, and lastly, the provision of telephone booths throughout the national territory installed in public areas or areas otherwise accessible to th e public. Sotel Tchad is responsible for providing 
the public service. 
4.110.  Three types of fee and charge are applicable
153: study fees, fees for the operation 
and control of the frequency spectrum, and charges for the use of radio frequencies or channels. 
4.111.  The Ministry of Postal Services and New Communications Technologies is responsible 
for the formulation, coordination, implementation and follow-up of the Government's policies in this sector
154; and allocates radiocommunication frequency bands for that purpose. The sector is 
regulated by the Chadian Telecommuni cations Regulation Office (OTRT)155, which controls 
and manages radio frequencies, establishes and manages the national numbering plan and ensures that technical and commercial terms of interconnection do not hamper the provision of service.
156 The establishment and operation of ne tworks and services are authorized 
by the Minister, on the technical advice of the OT RT. Authorizations include a set of specifications 
establishing, inter alia , the area to be covered by the networ k, the timetable for bringing it into 
operation, and the methods for setting and renewing rates. 
4.112.  The import of telecoms equipment requires approval from the OTRT157, which is granted 
in respect of specific equipment for a renewable five-year period (Table 4.11). Nonetheless, a temporary admission certificate can be issued while approval is awaited. The sale and installation 
of equipment is also regulated: all operators must be authorized by the OTRT. 
Approval costs CFAF 300,000 for sellers, and CFAF 500,000 for authorization as an installer, plus CFAF 20,000 in each case for processing the application. 
                                               
153 Order No. 037/MPTIC/SG/2011 of 10 August 2011 de fining and fixing telecommunications fees 
and charges. 
154 Online information from the Ministry. Viewed at: http://mptic-tchad.org/. 
155 Online information. Viewed  at: http://www.otrt.org/. 
156 Decree No. 453/PR/MPT/99 approving the statutes of the Chadian Telecommunications Regulation 
Office (OTRT). 
157 Order No. 036/MPTIC/SG/2011 specifying rules and procedures for aproving telecommunications 
terminal equipment. WT/TPR/S/285 • CHAD 
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  Table 4.11 Cost of approving telecommunications equipment  
(CFAF) 
Type of equipment Processing the 
application Authorization  
Telephones    
Simple telephones 5,000 50,000 
Complex telephones 10,000 70,000 
Ancillary telephony equipment 5,000 150,000 
Mobile telephony terminals 20,000 100,000 
Private self-switching devices 44,000 145,000 
Radio transmitters-receivers 40,000 90,000 
Private satellite dishes (VSAT, IBS) 24,800 120,000 
Cables   
Coaxial cables 24,800 100,000 
Fibre optic 60,000 200,000 
Radio-telecom interfaces (WLAN module, Bluetooth, 
analog modem) 10,000 20,000 
Source: Annex to Order No. 036/MPTIC/SG/2011, specifying rules and procedures for approving 
telecommunications terminal equipment. 
4.113.  The number of operators and access suppliers in the sector is restricted to nine158: a single 
operator for the basic telecommunications networks, three for terrestrial mobile radio networks, 
including a subsidiary of the traditional operator; and five operators to provide public Internet access, including the traditional operator. At the present time, the limit has been reached in each of these categories, which means that, in principle, no additional operator can be authorized. 
According to the authorities, the decree is currently being amended to allow more operators. 
4.114.  On the issue of interconnection, each operator is free to prepare its catalogue 
and negotiate with each correspondent. The agreement must be submitted to the OTRT which 
can request amendment. Interconnection fees ar e CFAF 60 between fixed and mobile networks 
and CFAF 68 between mobile networks.
159 According to the OTRT, these fees are far from 
reflecting costs. The two main operators, whic h share the bulk of the mobile phone market, 
have relatively balanced interconnection volumes, so they take advantage of this situation. 
4.115.  According to the regulations, numbering re sources are considered a public good; they are 
non-negotiable and can only be transferred with OTRT permission. The numbering plan contains eight digits. Its management modalities were altered recently in 2012.
160 A request for numbering 
resources is sent to the OTRT with payment of a fee of CFAF 100,000.161 At the time of attribution, 
a single charge of CFAF 1.5 million is made per block of numbers (100,000 numbers). A utilization fee is charged each year. For blocks of numbers, this amounts to CFAF 200 per number used. 
For other types of number, it is CFAF 1 millio n for a four-digit prefix, CFAF 1.5 million 
for a three-digit prefix, and CFAF 2 million for a two-digit prefix. Numbering resources may also be 
reserved, but for no longer than two years. In this case, the costs are equivalent to half the 
charges normally levied, in the case of utilization. 
4.116.  Since 2011, the OTRT has performed quarterly audits of the quality of services provided 
by the mobile networks. The audit evaluates th e radio coverage, availability of the network 
and the hold time in the main cities and on certain highways. In 2012, losses arising from network 
inaccessibility and poor quality of communication resulted in pecuniary sanctions being applied 
to three mobile phone operators. The fines represented, respectively, 0.57%, 0.49% and 1.08% of the sales turnover of Airtel, Tigo and Salam. 
4.117.  Internet access suppliers are subject to an  authorization regime. Authorization is granted 
by the OTRT for a renewable five-year period. Currently, there are five valid permits. Until 2012, the regulation restricted the number of authorizations, and this curtailed the development of the 
                                               
158 Decree No. 280/PR/MPT/05 of 23 May 2005 limiting the number of authorizations for the 
establishment and operation of telecommunications networks. 
159 OTRT (2012). 
160 Decree No. 527/PR/PM/MPNT/2012 of 13 April 2012, specifying rules for the management 
of the national numbering plan, conditions for the use of numbering resources and the related charges. 
161 Order No. 007/PR/PM/MPNTI/SG/2012 of 26 April 2012, specifying and setting fees and charges 
for the attribution and use of numbering resources. WT/TPR/S/285 • CHAD 
- 426 - 
  subsector. Since this measure was lifted in June 2012162, the regulatory body has received 
numerous applications to supply Internet access.  The corresponding regulatory instruments are 
being prepared. 
4.118.  Implementation of the fibre optic network could give renewed impetus to the sector 
if the other constraints, such as unpredictable electricity supply, can be overcome. 
Inaugurated in March 2012, this network, which cost about CFAF 20 billion to build, links the capital and four other urban centres to the Komé oil site. From there, the fibre optic cable already 
installed along the pipeline, should enable the country to be connected to the SAT3 submarine 
cable, located on the African continent's Atlantic seaboard. The management and maintenance of this network are, in principle, the responsibility of the Société d'infrastructure de transmission des 
communications électroniques par fibre optique  (SITCOM-Tchad), a State-owned enterprise 
created in March 2011. According to the authorities, the fibre optic project should make it possible 
to provide a better service and facilitate universal service provision. The fibre optic network is not 
yet operational. 
4.119.  The public postal service is provided by the Société tchadienne des postes et de 
l'épargne (STPE).
163 Under the legislation, the STPE has exclusive rights to provide the-mail 
service and the post's financial services.164 Nonetheless, it can also work with national or foreign 
partners and hold stakes in institutions with related objectives or those that complement its 
mission. It can thus delegate the following services to operators under concession, under an operating permit or contract: domestic and international express services, courier services within the country, commercial transport of postal parc els, and the operation of post offices by 
postal correspondents. 
4.4.4  Financial services 4.4.4.1  Banking services 
4.120.  Banking is regulated by the Central African Banking Commission (common report, 
Chapter 4). Banks currently operating are shown in Table 4.12. Since the last TPR, a new bank has been created and existing banks have undergone major recapitalization: the cumulative capital 
of the banks had almost tripled to CFAF 45 million by late 2011. The State's presence in the sector 
has also increased, following the nationalization of the Banque agricole et commerciale (formerly Banque agricole et commerciale du Soudan), and an increase in the Government's stake in the equity of Commercial Bank Tchad (CBT). 
Table 4.12 Capital and structure of th e main banks in activity, 2006 and 2011
 
 End 2006 End 2011 
Capital 
(CFAF million)  Ownership 
structure (%) Capital 
(CFAF million) Capital share 
(%) 
 State Foreign  State Foreign 
Société générale Tchad 
(formerly SGTB) 1,100 20 45 5,000 20 66.16 
Banque sahélo-saharienne 
pour l'investissement et le 
commerce (BSIC) 2,000 0 100 6,000 0 100 
Commercial Bank Tchad 
(CBT) 4,019 17.5 .. 10,000 62.48 22.4 
Banque commerciale du 
Chari (BCC)a 3,000 50 50 6,000 50 50 
Orabank b 1,850 0 69 5,000 0 100 
Ecobank Tchad c 3,000 0 .. 10,000 .. 96 
                                               
162 Decree No. 994/PR/PM/MPNTI/2012 of 29 June 2012. 
163 Law No. 008/PR/98 of 17 August 1998 organizing the public postal service. 
164 The postal cheques centre has about 25,000 subscribers, mainly employees. WT/TPR/S/285 • CHAD 
- 427 - 
   End 2006 End 2011 
Capital 
(CFAF million)  Ownership 
structure (%) Capital 
(CFAF million) Capital share 
(%) 
 State Foreign  State Foreign 
Banque agricole et 
commerciale (BAC) d 868 0 100 3,000 100 0 
United Bank of Africa 
(created in 2009) n.a. n.a. n.a. 7,796 0 100 
a Formerly Banque tchadienne arabe libyenne. 
b Formerly Financial Bank. c  Formerly BIAT. d  Formerly Banque agricole et commerciale du Soudan. 
..  Not available. Source:  Information provided by the Chadian authorities and the BEAC. 
4.4.4.2  Microfinance services 
4.121.  The legal and regulatory framework governin g microfinance establishments is also defined 
by regulations issued by the Central African Banking Commission (COBAC). The activities 
of this sector are supervised by the Ministry re sponsible for finance, operating through a technical 
unit created in 2002, pursuant to community regulations. 
4.122.  As of late October 2010, Chad had 202 active microfinance institutions (MFIs), 
mostly organized in networks (Table 4.13). The ma j o r i t y  o f  t h e  l o a n s  e x t e n d e d  b y  M F I s  g o  t o  
farmers (60%); small-scale traders receive 20% of credits, while livestock breeders and fishermen 
share 10%. Private sector wage earners and civil servants jointly account for the remaining 10%. 
4.123.  Although independent investors are increasingly appearing, the microfinance sector 
continues to rely on support from donors and non-governmental organizations (NGOs). 
In late 2010, of the six active networks, only one had achieved financial autonomy. Many MFIs are 
either closing down or are in decline. 
Table 4.13 Microfinance se ctor statistics, 2006-2010  
 2006  2007  2008  2009 2010a 
Number of authorized 
establishments 203 210 .. .. 202 
Number of customers 128,402 137,053 154,283 174,878 201,572 
Deposits (CFAF million) 3,236.5 3,965.5 3,236.5 5,560.0 3,236.5 
Loans (CFAF million) 4,086.6 5,675.5 4,086.6 6,800.0 4,086 .6 
a  Situation as of late October 2010. 
Source: Data provided by the national authorities. 
4.124.  According to the authorities, the microfinance sector has a major role to play in combating 
poverty. An initial national microfinance strategy was adopted in 2003, and a second one in 2008 
covering the period 2009-2013. These different strategies have the following objectives: to improve the environment and institutional framework for sector activities; to increase access to financial products and services for poor and low-income population groups; to strengthen 
interaction between banks and microfinance enterprises; and to promote the emergence 
and development of qualified local lenders in the sector. These are being implemented over a five-year period, and should result in 420 MFIs serving half a million users by 2013. 
4.4.4.3  Insurance services 
4.125.  As in other CEMAC countries, the insurance market in Chad is governed 
by the Inter-African Conference on Insurance Markets (CIMA) (common report, Chapter 4). 
The National Insurance Directorate is the entity that liaises with the CIMA Regional Commission 
for the Supervision of Insurance (CRCA). WT/TPR/S/285 • CHAD 
- 428 - 
  4.126.  As was the case at the time of the pr evious TPR, two companies provide insurance and 
reinsurance services in Chad: Société tchadienne d'assurances et de réassurances (STAR nationale), and Société africaine d'assurance et de réassurance (SAFAR Assurances SA). STAR nationale is the only company supplying life insurance services, through its STAR Vie branch. 
The trend of premium income in these companies for the period 2005-2010 is shown in Chart 4.2. 
4.127.  Since the previous TPR, the number of insurance brokerage companies has grown 
from four to ten. Thus, in addition to MARSH-Assureurs Conseils Tchadiens, Gras Savoye Tchad, 
Socar and Sotca, there are now the following companies: Société de conseil en assurances 
(created in 2010); Alpha Assurances (2007); Assureurs conseils africains (2007), Espace Conseil de courtage en assurances (2009), ASCOMA Tchad (2010); and New Africa Chad (2012). 
4.128.  Community provisions make third-party automobile liability insurance compulsory 
and national legislation requires imported merchandise or cargo to be insured, as well 
as construction risks. Insurance on imported merchandise or cargo is mandatory for goods with an f.o.b. value of CFAF 500,000 or more.
165 The penalty for failure to cover these risks can be 
a fine of 25% of the value of the goods or a prison sentence, or both. In principle, staff from 
the Ministry of Finance are assigned to the main customs post to verify the existence of the insurance certificate. In practice, very few operators take out this insurance, however, 
which is often seen as an additional tax on imports. At customs, when proof of insurance is absent, 
the value of the merchandise is increased by 2% before calculating duties and taxes. 
4.129.  Insurance against construction risks in respect of public buildings and works is compulsory 
for works valued at CFAF 50 million or more.
166 The following risks are covered: construction site 
risks, assembly risks, and 10-year civil liability. 
Chart 4.2 Insurance company premiums, 2005-2010 
0246810
2005 2006 2007 2008 2009 2010Non-life insurance Life insurance
 
Source:  FANAF (2012). 
                                               
165 Decree No. 736/PR/MFM/DG/SCA/85 of 19 November 1985 and its implementing order 
(Order No. 0019/MFM/MEC/DG/ SCA/86 of 2 April 1986). 
166 Decree No. 737/PR/MFM/DG/SCA/85 making it compul sory to insure against construction risks, 
and its implementing order (Order No. 120/MF/SE/DG/002/DFEMCAS/SCA/97). WT/TPR/S/285 • CHAD 
- 429 - 
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- 431 - 
  5  APPENDIX - TABLES 
Table A1. 1 Structure of exports, 2005-2010 
 2005  2006  2007  2008 2009 2010  
Total (US$ million) 2,172.1 2,513.6 2,514.6 3,923.7 2,296.6 3,096.0 
 (Percentage share) 
Primary products, total 97.5 99.1 99.1 99.2 98.4 92.4 
   Agriculture 4.7 4.7 3.4 1.8 2.4 3.9 
      Food products  0.0 0.0 0.0 0.0 0.5 0.0 
      Agricultural raw materials 4.7 4.7 3.4 1.8 1.9 3.9 
   Extractive industries 92.9 94.4 95.7 97.4 96.0 88.5 
      Ores and other minerals 0.0 0.0 0.0 0.0 0.0 0.0 
      Non-ferrous metals 0.0 0.0 0.0 0.0 0.0 0.0 
      Fuels 92.9 94.4 95.7 97.4 96.0 88.5 
 Crude petroleum or bituminous 
mineral oils  73.4 90.6 94.6 93.9 90.4 79.9 
       
Manufactured products 2.2 0.6 0.6 0.5 1.2 7.1 
   Iron and steel 0.0 0.0 0.0 0.0 0.0 0.0 
   Chemical products 0.0 0.1 0.0 0.0 0.1 2.6 
   Other semi-finished goods 0.0 0.0 0.0 0.0 0.3 4.2 
   Transport machinery and material 2.1 0.4 0.5 0.4 0.5 0.1 
   Textiles 0.0 0.0 0.0 0.0 0.0 0.0 
   Clothing 0.0 0.0 0.0 0.0 0.0 0.0 
   Other consumer goods 0.0 0.0 0.0 0.1 0.3 0.2 
Other 0.2 0.3 0.3 0.4 0.4 0.5 
Source:  WTO calculations, based on data obtained fro m UN Comtrade, mirror statis tics, UNSD (SITC, Rev.3). WT/TPR/S/285 • CHAD 
- 432 - 
  Table A1. 2 Structure of imports, 2005-2010 
 2005  2006  2007  2008 2009 2010  
Total (US$ million) 386.0 434.9 636.5 778.1 943.6 1,358.2 
 (Percentage share) 
Primary products, total 17.9 18.5 24.3 19.5 18.5 33.9 
   Agriculture 13.3 15.4 13.0 17.9 16.0 11.4 
     Food products 12.4 14.8 12.5 17.4 15.0 10.7 
     Agricultural raw materials 1.0 0.6 0.5 0.4 1.0 0.7 
   Extractive industries 4.5 3.1 11.3 1.7 2.5 22.5 
     Ores and other minerals 0.2 0.4 0.2 0.6 0.5 0.2 
     Non-ferrous metals 0.2 0.5 0.2 0.1 0.1 0.2 
     Fuels 4.1 2.3 10.9 0.9 1.9 22.0 
       
Manufactured products 80.5 76.5 71.2 71.2 77.1 63.6 
   Iron and steel 4.8 4.5 2.4 4.6 9.8 6.3 
   Chemical products 15.5 9.2 10.0 7.6 9.2 7.3 
   Other semi-finished products 5.3 6.6 6.2 6.9 6.6 5.7 
   Transport machinery and material 47.3 44.1 44.4 43.4 40.3 36.7 
  Energy-producing machinery 4.5 2.2 2.4 3.2 2.1 3.3 
 Other non-electric machinery 22.2 21.3 19.0 15.7 16.6 17.9 
 Office machinery and 
telecommunications material 6.4 6.6 9.3 6.3 4.8 3.2 
 Other electrical machinery 3.8 2.8 4.1 3.1 3.2 6.3 
 Products of the automotive industry 4.2 7.6 6.9 11.3 11.4 5.0 
 Other transport material 6.3 3.5 2.7 3.9 2.3 1.0 
   Textiles 2.0 1.6 1.2 0.8 1.1 0.8 
   Clothing 0.5 0.7 1.5 1.3 0.8 0.4 
   Other consumer goods 5.1 9.7 5.6 6.7 9.2 6.5 
Other  1.6 5.0 4.4 9.2 4.4 2.5 
Source:  WTO calculations, based on data obtained fro m UN Comtrade, mirror statis tics, UNSD (SITC, Rev.3). WT/TPR/S/285 • CHAD 
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  Table A1. 3 Export destinations, 2005-2010 
 2005  2006  2007  2008 2009 2010  
World (US$ million) 2,172.1 2,513.6 2,514.6 3,923.7 2,296.6 3,096.0 
 (Percentage share) 
 America 72.8 80.5 89.1 88.5 89.7 68.2 
   United States 72.7 80.4 89.1 88.5 89.7 68.1 
   Other countries of the Americas 0.0 0.0 0.0 0.0 0.0 0.0 
       
 Europe 11.3 2.2 2.1 2.2 5.6 5.6 
   EU(27) 11.2 2.0 2.1 2.2 5.6 5.6 
   European Free Trade Area 
(EFTA) 0.0 0.2 0.0 0.0 0.0 0.0 
   Other European countries 0.0 0.0 0.0 0.0 0.0 0.0 
       
 Community of Independent States  
(CIS) 0.0 0.0 0.0 0.0 0.0 0.0 
       
 Africa 0.2 0.2 0.3 0.1 1.2 9.3 
   Nigeria 0.0 0.0 0.0 0.0 1.1 9.2 
       
 Middle East 0.0 0.0 0.0 0.0 0.0 0.1 
       
 Asia 15.8 17.1 8.5 9.2 3.4 16.8 
   China 8.8 10.4 3.3 1.1 2.8 16.0 
   Six East Asian trading countries 6.5 5.8 0.6 2.9 0.1 0.2 
     Thailand 0.2 1.3 0.5 0.1 0.1 0.1 
     Chinese Taipei  3.8 2.3 0.0 2.7 0.0 0.0 
   Other Asian countries 0.5 0.4 0.7 0.3 0.4 0.7 
Source: WTO calculations, based on data obtained from UN Comtrade, mirror statisti cs, UNSD (SITC, Rev.3). WT/TPR/S/285 • CHAD 
- 434 - 
  Table A1. 4 Origin of imports, 2005-2010 
 2005  2006  2007  2008 2009 2010  
World (US$ million) 386.0 434.9 636.5 778.1 943.6 1,358.2 
 (Percentage share) 
 America 15.6 16.5 14.0 9.4 8.2 7.4 
   United States 13.9 13.9 11.2 8.0 6.6 6.5 
   Other countries of the Americas 1.7 2.6 2.8 1.4 1.5 0.9 
     Canada 1.3 2.4 2.0 0.7 1.2 0.5 
       
 Europe 58.1 48.6 43.4 42.5 41.2 27.8 
   EU(27) 57.3 45.2 42.5 40.8 39.7 27.4 
     France 24.3 20.7 20.8 18.5 15.6 12.3 
     Belgium 7.7 5.4 3.4 3.2 3.4 2.8 
     Italy 1.7 1.4 1.8 3.2 5.7 2.1 
     Germany 3.6 8.1 7.7 5.8 2.9 2.0 
     Netherlands 4.4 3.0 3.0 4.1 3.6 1.9 
     Finland 2.5 0.1 0.1 0.1 0.2 1.5 
     United Kingdom 2.3 1.3 1.9 3.0 2.4 1.5 
     Austria 1.8 1.4 0.4 0.7 2.4 1.0 
     Spain 0.3 1.1 0.8 0.6 0.5 0.7 
   EFTA 0.5 2.9 0.5 0.4 0.9 0.1 
   Other European countries 0.3 0.5 0.5 1.3 0.5 0.2 
       
 CIS 1.5 3.8 2.1 10.1 4.7 0.9 
   Ukraine 1.2 2.5 1.9 10.0 4.7 0.9 
       
 Africa 15.1 16.6 20.4 19.7 21.5 36.9 
   Cameroon 6.8 6.6 15.1 5.6 5.6 24.9 
   Nigeria 0.0 3.2 0.6 1.2 1.7 2.7 
   Namibia 0.0 0.0 0.0 0.0 0.0 2.5 
   Senegal 0.4 0.2 0.2 4.9 3.3 2.0 
   Benin 1.1 0.8 0.7 2.5 2.4 1.3 
   Egypt 0.1 0.1 0.1 0.3 0.7 1.0 
   Congo 0.0 0.0 0.9 0.4 0.9 0.6 
       
 Middle East 3.8 5.0 4.6 3.7 4.9 2.2 
   United Arab Emirates 2.3 3.9 3.6 3.0 4.3 1.9 
       
 Asia 5.9 9.4 15.5 14.6 19.6 24.8 
   China 3.9 3.3 10.9 10.3 15.8 22.7 
   Japan 0.1 0.2 0.8 1.3 1.3 0.3 
   Six East Asian trading countries 0.4 0.8 1.1 0.6 1.7 0.9 
   Other Asian countries 1.4 5.2 2.6 2.5 0.8 0.9 
     India 0.9 4.2 2.2 2.1 0.7 0.8 
Source:  WTO calculations, based on data obtained fro m UN Comtrade, mirror statis tics, UNSD (SITC, Rev.3). 
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