This report describes the key policiesfor Chad to successfully leverage export diversification tofoster economic growth. After several unsuccessful attemptsat diversifying in the 1990s, Chad has deepened itsdependence on commodities, mainly relying on oil; which cameto replace cotton. However, the experience of othercountries, in Africa and other parts of the world, showsthat while large scale production of oil resources offersgreat opportunities, it comes with major shortcomings.Chad’s Vision 2030 is to become an emerging economy, drivenby diversified and sustainable sources of growth. The goalis to triple the average GDP per capita at current prices,by increasing it from US$ 730 in 2014 to US$ 2300 in 2030,while drastically reducing the poverty rate from 46.7percent in 2011 to 8 percent during the same period. Chad’seconomy is overly dependent on crude petroleum, which makesit vulnerable to external shocks. Therefore, to achieve thisdevelopment goal, only an export diversification strategycan foster a larger menu of goods and services than canbecome growth-accelerating and job-creating activities. Itsimplementation challenges are formidable, but the countryhas little choice, as the social unrest following recurrentoil price slumps, its burgeoning youth population andregional security threats may foment more violence in analready fragile and volatile economy and keep investorsaway. Hence, this report outlines a strategy to achieve thisvision centered on the diversification of its non-oileconomy (mainly agricultural-based exports) away fromnatural resource-based commodities.
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