Chad can diversify its economy, reduce poverty, and spur inclusive development by increasing private sector investment in high-growth agriculture value chains and in the energy, infrastructure, and access to finance sectors that support crop and livestock development, according to a report published today by IFC and the World Bank.
The Chad Country Private Sector Diagnostic (CPSD) analyzes private sector challenges and opportunities in Chad, identifies areas for reform, and highlights sectors with the greatest potential to drive sustainable and inclusive private sector–led growth in alignment with Chad’s development agenda In Vision 2030: The Chad We Want.
The CPSD highlights livestock, sesame seed, gum arabic, and cotton as value chains with high potential for development impact. Increasing private participation in cold-chain infrastructure, industrial-scale breeding, and water management, along with support to farmers to help them access quality seeds and fertilizers, will also boost agricultural development, according to the report.
The report comes as Chad, an increasingly oil-dependent economy, continues to recover from the impacts of the COVID-19 pandemic while facing other significant challenges, including food insecurity, oil price volatility, and climate change. Agriculture and pastoralism account for 73 percent of household income and 54 percent of GDP.
“Chad aspires to diversify its economy in order to achieve the promises of its national development plan. Through the CPSD, the World Bank and IFC intend to support the Government of Chad’s efforts to make the private sector the engine of job creation and economic transformation,” said Rasit Pertev, World Bank Country Manager for Chad.
“Chad boasts considerable opportunities for private sector investment in agriculture value chains that can drive structural transformation and job creation,” said Sylvain Kakou, IFC Country Manager for Chad. “The CPSD explores in detail how Chad can better harness its agricultural resource endowments to generate more economic opportunities and reach its development goals”.
The report also underscores the need for Chad to implement reforms to remove constraints in energy, infrastructure, access to finance, and the digital economy, which are hindering the country’s agriculture sector. For example, establishing mini-grids and independent power plants and providing credit guarantees for SME’s could boost farmers’ and producers’ productivity.
In line with the CPSD’s findings, the World Bank Group’s strategy for Chad focuses on agribusiness, infrastructure, power, ICT, manufacturing, transport, and logistics.
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