Chad - The economy of the Republic of Chad

RESTRICTED FILE COPY Report No. AF-71a This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION THE ECONOMY OF THE REPUBLIC OF CHAD March 15, 1968 Africa Department  CURRENCY EQUIVA:LENTS Currency unit - CFA francs (CFAF) U.S. $1 = CFAF 246.85 CFAF 100 = U. S. $0. 4051 CFAF 1, 000, 000 = U.S. $4, 051.04  Foreword This is the first report by the Bank on the Chad economy. Because of the report's comprehensive nature including its dis- cussion of institutions in Chad, it will be retaLined for refer- ence purposes. It will be updated whenever warranted by economic circumstances. The report was prepared by Mr. Paul E. Booz with the assistance of Mr. Oliviero Pesce after a mission to Chad in April, 1967.   - ii - TABLE OF CONTIETS FOREWORD i TABLE OF CONTENTS BASIC DATA iv MAPS vi SUM IARY AlD CONCLUSIONS Xi I. INTRODUCTION 1 Location and Climate 1 Soils 2 Population 2 Health and Nutrition 3 Literacy and Education 3 Social and Political Development 4 Technical Assistance 6 International and Regional Ties 6 II. RECENT ECONOMIC DEVELORFIEWTS 7 A. The Structure of the Economy 7 B. Production Trends 8 Agriculture 9 Livestock 16 Fisheries 19 Gum Arabic 19 Industry 19 Ilining 21 Power 21 Transport 22 C. External Finance 25 Foreign Trade 25 Balance of Payments 27 D. Money and Banking 30 The BCEAEC 30 I'lonetary Development8 32 Cormercial Banks 32 Chad Development Bank 33 E. Prices and WIages 35 Prices 35 Wages 36   - iii - Irlge 11o, F. Public Finance 37 Structure of Current Revenues 39 Structure of Current Expenditures L1 11municipal Finance 42 G. Investment and Savings .2 III. :DEVELOPITINT PROBLEMIS, THE PLAN AND PROSPECTS 45 A. Problems 45 B. The First Five Year Plan 45 C. Prospects 47 Agriculture 07 Fishing 51 Forestry 51 Livestock 51 Industry, I4ining and Tourism 53 Power Transport 55 Post and Telecommunication 56 Education 56 Urban Housing and Development 57 Health 5 8 D. Implications for Production and Trade 59 IV. FI110CIAL PROSPECTS AND CREDITWJORTHIESS 60 A. Requirements for External Finance 60 Cotton Support 60 The First Five Year Plan 61 Central Government Investment 62 External Public Assistance 63 Technical Assistance 65 B. Creditworthiness 65 STATISTICAL APP&IDIX  . i  - iv - BASIC DATA Area: sq. miles 496,000 sq. kn. 1,28h4,000 E'opulation (1967 estimate) 3,U440,000 Rate of' growth 1.4 (1965) (estimated to reach 1.8 in 1970) Density per sq. mile 6.9 Density per sq. km. 2.7 Annual Rate of Growth Gross Domest,ic Product: 1958-65 Total CrDP (1965 - current prices) CFAF billion 59.0 5.9% GDP/capita (1965) CFAF 17,630 (US $71.4) 4.5%L Monetary sector GDP at current prices (1965) CFAF billion 31.0 Monetary GDP/capita (1965) CFAF 9,260 (US $37.5) Ra-te of growth External Trade CFAF million (1966) (1961-66) Recorded merchandise exports 5,848 1.7% Recorded merchandise imports 7,962 4.1% Surplus/Deficits (-) -2, 1114 l1.1% Total estimated exports- goods and services 8,392 1.4g Total estimated imports- goods and services 1L,788 4.1% Total trade surplus/deficits (-) - 6,396 -8.7% Money, Credit, and Prices CFAF billion Total money supply 6.37 (Dec. 31/66) 3.1% Domestic credit 6.84 17.0% Retail price index f r Fort lIamy (1958 =100) 162 (July 1966) 5.4% Public Finance - Central Goverment CFAF million 1965 1966 Current Revenue 7, 5 76.o 8,905.0 14.7 Current Expenditure 7,165.5 9,056.3 15.7 Current Surplus/Deficit (-) (before Debt Service) 410.5 -151.3 Current Surplus/Deficit (--) (after Debt Service) 198.4 -730.4 Capital Expenditure 565.3 544.3 9.3 . 1 GDP data, are not iully co.nparable, as a result this rate may be on the e -h side.   -v - External Public Debt U.S. $ million Tincluding debt guaranteed by Government) Total debt (:Dec. 31, 1966) 23.51 Total annual debt service on current debt 1967 3.36 1972 0.71 Debt service ratio to exports of goods and services on current debt 1967 11.2% 1972 3.4% Net Foreign reserves CFAF billion December 1960 2.86 December 1965 2.58 December :1966 0.52 June 1967 -0.89   C HA D 0 '00 200 300 400 500 K. - N __ ___ L I BYA -. ~~~~~~~~~~~~~Itenaioalboundaries Itrttsboundaries * Provincial capital /, //// __~~~~~~~~~F 7117 / 7~~~~i /7/7 / / 711 -I ~ ~ /I /// /1/1/ /1/ /~ _ / 7/1/ /// / /74/ / 7/'! 7/ / , ,,, r~~~~~~~~~~~1 ~~ /// / ,(,~~~~~ 4y4RqAu /0 -1/ / / / /7 //'/' /~~~~~~ove /10 / '/~~~< / / / //b//17/~~~ JANUARY 1968// 7 / 7/R '/ /D//'R   RAINFALL AND RELIEF 4.. ,.>e~~~~~~~~~~~~~~~~~~~~~1 C 100 20 0) hm 7 ,C M (, Hew on,wo/ra,nfo// f,mC JULY 1967 IDRD-2084   CHAD o TRANSPORTAT ON o o C) <>~~~~~~~~~~ ~ ~ .0 5O 3 11 '0 10 10 e 9