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FIDIT 2025 Chad Seeks Investment for Infrastructure Development

FIDIT 2025: Chad Seeks Investment for Infrastructure Development

DNE Africa
Last updated: February 19, 2025 5:46 pm
By DNE Africa 6 Min Read
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Chad is seeking investment in its infrastructure development at an international forum designed to attract finance and partnerships. The Forum International de Développement des Infrastructures du Tchad (FIDIT) 2025 opened this week in the capital, bringing together national and international stakeholders in the infrastructure sector.

Chadian Prime Minister Allahmaye Halina, speaking on behalf of Marshal Mahamat Idriss Deby, said Chad needs to modernise and extend its road, energy and digital infrastructure to open up the country and enhance its economic attractiveness.

“The road to development passes through the development of the road,” Halina said, adding that more than 7,000km of roads are scheduled for construction or renovation by 2029, as part of the government’s programme of twelve majorprojects and 100 actions.

The forum includes representatives from African states, international organisations and financial institutions. Among those attending are Egyptian Deputy Prime Minister for Industry and Minister Transport, Kamel El Wazir, and the executive secretary of AUDA-NEPAD, Nardos Bekele Thomas.

Infrastructure Projects

Several infrastructure projects were discussed during the forum. These include:

  • The Chad-Libya-Egypt corridor, to connect the country to Mediterranean markets.
  • The Trans-Saharan road linking Niger, Mali and Algeria.
  • The Chad-Cameroon Friendship Bridge and rail links, to strengthen connections with the Gulf of Guinea.

The Chadian government has appealed to private investors and international financial institutions to realise these ambitions. The government has also highlighted an improved business climate, tax incentives and an attractive legal framework.

“This Forum must not be a mere platform for discussions, but a framework for concrete commitments,” the Prime Minister said, calling for structuring agreements to accelerate Chad’s economic transformation. The event is scheduled tocontinue for three days, with thematic discussions and partnership agreements expected.

Forum Discussions

On the first day of the forum, a high-level panel, including Chad’s Minister of Infrastructure, Amir Idriss Kourda, Egyptian Deputy-Prime Minister of Industrial Development and Minister of Transport, Kamel El-Wazir, and Chad’s Secretary of State for Finance and Budget, Ali Djadda Kampard, explored the challenges and opportunities linked to infrastructure development in Chad, particularly through the Chad-Libya-Egypt integrated corridor.

Minister Kourda stressed the importance of roads as structuring elements, not only to connect capital cities, but also to link towns and villages along the route. “We are still at the very beginning,” he said. “Feasibility studies are underway, and for Chad, approximately 549 kilometres must be realised. In five months, we will have detailed studies to evaluate the projects, estimate the costs and establish the exact kilometrages thanks to topographic studies by drones and geotechnical analyses.”

The Minister said that current data remains approximate due to a lack of comprehensive studies, but assured of his ministry’s commitment to completing the project. “It’s not just about building a road,” Kourda added. “We are also integrating infrastructure like fibre optics, railways, energy, water and hydro-agricultural developments. This project is of vital importance, and we will ensure its proper execution.”

Ali Djadda Kampard said that Egypt would take charge of the section of the corridor crossing its territory, while Chad would concentrate on the road linking Abéché or Amdjarass to the Libyan border. Libya will also participate in this initiative, he confirmed.

Chad’s Economic Growth

Chad’s economic growth is projected to recover to 3.1% in 2024, but is expected to rebound in the medium term as a result of public investment and structural reforms, according to the International Monetary Fund (IMF). The IMF added that Chad’s post-pandemic recovery picked up in 2023 with growth increasing to 4.9%.

Non-oil activity expanded by 4.5%, driven by a rebound in agricultural production and a substantial increase in public investment. Oil GDP grew by 7.6% as closed oil fields were brought back on-stream. After declining in 2023 (to 4.2% from 8.3% at end-2022), year-on-year inflation increased to 8.7% at the end of August 2024, reflecting a readjustment of fuel oil prices and a rebound in food prices. The external current account balance returned to a deficit of 0.7% of GDP in 2023, as oil prices receded and an increase in public investment boosted imports.

The IMF projects that after increasing substantially in 2023 (to 11.9% of non-oil GDP), Chad’s non-oil primary deficit moderated to 4.2% of non-oil GDP during the first seven months of 2024, reflecting a reduction in the use of emergency spending procedures, expenditure restraint, and financing constraints. Total public debt fell to 34.2% of GDP in 2023 as persistently high oil prices boosted government revenue.

According to the IMF, further fiscal consolidation efforts in Chad focused on mobilising non-oil revenue and streamlining non-priority spending would contribute to a reduction in the non-oil primary deficit to 8% of non-oil GDP in 2024, 7.2% in 2025, and 5% over the medium term. Public debt is projected to stabilise at around 32 % of GDP while net debt would gradually decline to 27½ % of GDP by 2029, reflecting the gradual build-up of fiscal reserves of 5 % of GDP. Risks to the outlook are substantial and tilted to the downside and include potential delays in implementing fiscal consolidation measures, a larger-than-expected decline in oil prices, an increase in the influx of Sudanese refugees, and a further increase in the frequency and severity of climate change-related events.

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