Chad : latest political and business news - The Africa Report

Chad remains one of Africa's most volatile investment destinations, yet recent political developments signal a potential inflection point for European entrepreneurs willing to navigate the country's complex risk landscape. Following years of military rule and constitutional uncertainty, the Chadian government has embarked on a process of political normalisation that, while fragile, presents emerging opportunities in sectors ranging from extractive industries to infrastructure and telecommunications. The broader context matters significantly for European investors evaluating Chad's investment potential. As the second-largest oil producer in sub-Saharan Africa after Nigeria, Chad generates substantial export revenues that theoretically support economic diversification. However, dependence on petroleum—which accounts for approximately 90% of government revenue—creates vulnerability to commodity price fluctuations and fiscal instability. The country's 2023 oil production averaged around 330,000 barrels per day, with revenues directed toward debt servicing and security expenditures rather than developmental infrastructure. The recent political trajectory reflects attempts to establish institutional legitimacy following the 2021 military coup. A transitional roadmap toward democratic elections, whilst delayed multiple times, represents a normalisation process that international investors monitor closely. European investors, particularly those from France, Italy, and Germany, have maintained historical engagement in Chad's extractive sector, but broader commercial activities remain severely constrained by security conditions