Economy Type
Oil, Livestock & Development Economy
Chad is classified as an Oil, Livestock & Development Economy country.
This is because while the national budget and exports are centered on crude oil, the livelihoods and employment of the majority of the population depend on agriculture and livestock farming, and the sectors of electricity, water, roads, health, and food rely heavily on international development projects.
The IMF assesses that Chad is facing significant fiscal and balance of payments pressures due to oil price fluctuations, climate and security shocks, and the influx of Sudanese refugees. The African Development Bank analyzes that while growth in 2025 was supported by an agricultural recovery, dependence on oil and structural vulnerabilities will persist.
Country Definition
Chad is a landlocked Sahel country that sustains its finances through crude oil exports while transitioning to agriculture, livestock, solar power, and basic infrastructure as its new growth base.
Why It Matters
Chad is a major oil-producing country in Central Africa, exporting crude oil produced at the Doba oil field through a pipeline connected to an offshore terminal near Krivi, Cameroon.
However, the stability of oil imports is weakening due to reduced production from existing oil fields and fluctuations in international oil prices. The IMF analyzes that a decline in oil prices between 2025 and 2029 could result in a significant additional burden on oil imports and government finances.
On the other hand, Chad possesses a vast territory connecting the Sahel and Central Africa, a large-scale livestock base, agricultural land, and strong solar power potential. Agricultural recovery supported economic growth in 2025 and contributed to food price stability.
Chad's strategic value comes from the next transition.
Crude oil exporting countries
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Livestock, cotton, and grain producing countries
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Expansion of solar power, food processing, and logistics infrastructure
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Inland Sahel market connecting Cameroon, Nigeria, and Sudan
Korea Perspective
For South Korea, Chad is significant as a development cooperation and project market centered on oil facilities, agriculture, livestock processing, solar power, water management, health, roads, and logistics, rather than a general consumer market.
Korean companies can consider cooperation in the following areas.
- Oil field and pipeline maintenance
- Agricultural machinery and irrigation
- Livestock, Meat Processing, Leather Processing
- Cotton and grain processing
- Solar power and energy storage systems
- independent power grid
- Water purification, groundwater, and sanitation facilities
- Medical devices and cold chain
- Roads, warehouses, and customs clearance
- e-government and financial management system
However, oil prices, foreign exchange and fiscal matters, Sudan's border security, refugee influx, and inland logistics costs must be considered together. The IMF assesses that humanitarian, climate, and security shocks are significantly increasing the fiscal and social service burdens on Chad.
Key Keywords
- Oil, Livestock & Development Economy
- Crude Oil
- Livestock
- Cotton
- Agriculture
- Solar Energy
- Sahel
- Landlocked Economy
- Cameroon Pipeline
- Development Project Market
Chad is a landlocked country in the Sahel and Central Africa, bordering Libya, Sudan, the Central African Republic, Cameroon, Nigeria, and Niger.
The economy is centered on crude oil, agriculture, livestock, distribution, transportation, and public services. The World Bank explains that poverty and vulnerability are widespread, and that the proportion of the population below the national poverty line was 44.8% in 2022.
There are significant differences in growth rate estimates for 2025 among institutions. The World Bank projected growth in the 5% range, reflecting a recovery in agriculture and the non-oil sector, while the African Development Bank assessed it at 3.4%. This demonstrates that forecasts can vary significantly depending on oil production, agricultural performance, and statistical capabilities.
Key Features
- Major oil-producing countries in Central Africa
- Agricultural and livestock-centered livestock economy
- landlocked countries in the Sahel and Central Africa
- Reliance on Cameroon crude oil pipeline
- High poverty and vulnerability
- Impact of the Sudan Conflict and Refugee Influx
- Lack of power, road, and water infrastructure
- Climate, Flood, and Drought Risks
The Chadian economy has a dual structure in which oil exports support national finances and foreign exchange earnings, while agriculture and livestock farming support employment and the livelihoods of the people.
In 2024, floods and a decline in oil production weighed on growth, but in 2025, a recovery in agricultural production and activity in the non-oil sector supported the economy. The IMF assesses that while growth in the non-oil sector was stronger than expected, oil prices and a decline in aid remain risk factors for fiscal and balance of payments.
The private consumer market has limited purchasing power, making demand from governments, state-owned enterprises, international development banks, and humanitarian organizations crucial. Continuous project demand is expected in the sectors of agriculture, food security, solar power, water and sanitation, health, and roads.
Market characteristics
- Oil and government finance-centered
- Agriculture and livestock livelihood economy
- Low purchasing power and high poverty
- High demand for development finance and humanitarian aid
- Power, Roads, and Water Shortages
- Inland logistics cost burden
- sensitive to oil prices and climate
MarketHub Point
It is appropriate to approach Chad as a B2B and B2G project market centered on oil facilities, agriculture and livestock, power, water management, health, and public infrastructure, rather than the general consumer market.
Crude oil is Chad's core export industry and a source of fiscal revenue. However, as the national economy is heavily dependent on existing oil field production and fluctuations in international oil prices, the expansion of non-oil industries is essential.
In agriculture, cotton, sorghum, millet, corn, peanuts, sesame, and gum arabic are important. Livestock farming, centered on cattle, sheep, goats, and camels, accounts for a large share of the rural economy and border trade.
Chad possesses both vast solar radiation and low electricity accessibility, giving it significant potential for solar and distributed power. The World Bank and development agencies identify electricity accessibility, climate resilience, and improved rural productivity as key conditions for national development.
Key industries
- crude oil
- livestock
- cotton
- Grains and agriculture
- Arabian gum
- food processing
- Leather and meat processing
- erection
- Distribution and transportation
- solar power
- public services
Key resources
- crude oil
- Livestock resources
- agricultural land
- cotton
- Arabian gum
- mineral potential such as gold and uranium
- solar energy resources
- Sahel Inland Market
MarketHub Point
Chad's core competitiveness lies in its ability to redirect crude oil imports toward agriculture, livestock farming, energy, infrastructure, and the development of local markets.
Chad exports crude oil, livestock, cotton, gum arabic, and some agricultural products, and imports fuel, food, machinery, automobiles, pharmaceuticals, and construction materials.
Crude oil is exported from the Doba oil field via a pipeline through Cameroon. General merchandise trade relies heavily on the land corridor connecting the ports of Douala and N'Djamena in Cameroon.
Around Lake Chad, border trade in agricultural products and consumer goods takes place with Nigeria, Cameroon, and Niger, and while the eastern region is connected to Sudan, conflicts and border controls weaken supply chain stability.
Chad's supply chain can be understood as having the following structure.
Oil, agriculture, and livestock production regions
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Collection and distribution networks such as N'Djamena and Mundu
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Cameroon pipeline and Douala land corridor
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Atlantic ports, CEMAC, and global markets
major trading partners
- Cameroon
- china
- france
- United Arab Emirates
- India
- Nigeria
- method
- Other CEMAC countries
Major exports
- crude oil
- cattle
- cotton
- Arabian gum
- sesame
- Some gold and agricultural products
Major Imports
- petroleum products
- food
- Machinery and Industrial Equipment
- automobile
- medicines
- Electrical and electronic products
- construction materials
Supply chain characteristics
- Reliance on Cameroon crude oil pipeline
- Import logistics centered on Douala Port
- High inland transportation costs
- Road, Customs, and Inspection Delays
- Lake Chad border trade
- Impact of the Sudan Conflict
- Dependence on fuel and food imports
- CEMAC Common Currency and Market Utilization
MarketHub Point
Chad's supply chain competitiveness lies in reliably connecting crude oil and agricultural products to the Cameroon pipeline and the Douala Corridor, and in revitalizing trade in the Lake Chad and CEMAC regions.
It is appropriate to approach Chad as a B2B and B2G project market centered on oil facilities, agricultural processing, solar power, water management, health, and transportation infrastructure rather than the general consumer market.
Although the economy grew in 2025 driven by a recovery in agriculture and non-oil sectors, falling oil revenues and the possibility of cuts in development aid are placing a burden on fiscal policy. The IMF analyzes that if oil prices fall in the future, oil revenues and fiscal capacity could be significantly weakened between 2025 and 2029.
Therefore, it is realistic for Korean companies to prioritize considering business models that combine facilities, operational training, maintenance, and financing in partnership with the government, state-owned enterprises, and international development agencies, rather than large-scale direct investment.
Market characteristics
- Oil and government procurement-centered
- High demand for agriculture, livestock, and food security
- International development and humanitarian projects are important.
- Low access to electricity, water, and transportation
- Local operation and maintenance capabilities required
Key Opportunities
- Oil field and pipeline maintenance
- Agricultural machinery and irrigation
- Livestock, Meat Processing, Leather Processing
- Cotton and grain storage and processing
- Solar Power & ESS
- independent power grid
- Water purification and sanitation facilities
- Medical devices and cold chain
Major Risks
- Fluctuations in oil prices and crude oil production
- Sudan conflict and refugee influx
- Fiscal and foreign exchange vulnerability
- Inland logistics costs and customs delays
- Climate, Floods, Droughts
- Administrative and contract performance risks
Chad's future competitiveness depends on whether it can convert oil revenues into investments in agriculture, livestock, electricity, logistics, and human capital .
The IMF projects real GDP growth at 5.2% in 2026, while the World Bank estimates growth at 5.6% in 2025. A recovery in agricultural production and the non-oil economy support growth, but high dependence on oil prices, production, and external support continues.
The IMF’s 2025 expanded credit program has set expanding non-oil revenue, fiscal management, and protecting social and development spending as core tasks. In the medium to long term, solar power, agricultural productivity, livestock processing, roads, and regional trade networks are highly likely to become the main pillars of industrial diversification.
Changes to Watch Out For in the Future
- Crude oil production and international oil prices
- Expansion of non-oil revenue
- Agricultural and livestock productivity
- Solar power and grid investment
- food storage and processing facilities
- Sudan Refugees and Border Security
- Douala Logistics Corridor
- Financial and public investment management
Market Position
Restricted Development Market + Sahel Oil–Agro Transition Node
Inland Sahel project market pursuing the transition of agriculture, livestock, energy, and basic infrastructure based on oil finance but with high country risk
Key Opportunities
- oil facilities
- agricultural machinery
- Livestock and meat processing
- Cotton and food processing
- Solar Power & ESS
- independent power
- Water management and hygiene
- Medical and Cold Chain
- Roads and Logistics
- Digitalization of public finance
Recommended Strategy
Observe
Continuously monitor crude oil production, international oil prices, financial conditions, Sudan's border security, and the procurement plans of international development agencies.
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Prepare
A system for security, logistics, payment settlement, operational training, and maintenance is established, centering on the government, state-owned enterprises, development finance institutions, and local partners.
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Participate
We will start by participating in solar power, agriculture and livestock processing, water and healthcare, and small-scale logistics projects, and once stability is confirmed, we will expand into the fields of oil facilities and large-scale infrastructure.
Final Assessment
Although Chad possesses oil and agricultural resources, it is a market that requires a phased approach based on public and development finance rather than large-scale private investment, due to the existence of high climate, security, and financial risks.
Scope of investigation
This document was prepared by cross-reviewing data from international organizations, development finance institutions, and government and industry sources related to Chad.
international organizations
- International Monetary Fund
- World Bank
- African Development Bank
- World Trade Organization
- CEMAC
- World Food Programme
Government and public institutions
- Government of Chad
- Ministry of Finance, Budget and Economy
- Ministry of Petroleum, Mines and Geology
- Ministry of Agricultural Production
- National Institute of Statistics
- Bank of Central African States
- KOTRA
- Korea Export-Import Bank Overseas Economic Research Institute
- Korea Institute for International Economic Policy
Research and industrial data
- IMF Chad 2024 Article IV Consultation
- IMF Chad 2025 Extended Credit Facility data
- World Bank Chad Macro Poverty Outlook
- World Bank Chad Country Partnership Framework 2026–2031
- African Development Bank Chad Economic Outlook
- International Oil, Agriculture, Energy, and Logistics Industry Data
Writing Verification
This document was prepared in accordance with the following principles.
- Research on actual international organizations, development finance, and industry data
- Distinguishing differences in growth rate and price forecasts by institution
- Reflecting oil prices, security, climate, and logistics risks
- Distinction between confirmed facts and prospects
- Application of the perspective on South Korea and MarketHub utilization
- Written based on WCI-001 Golden Template v1.0
- Maintain WCI-001 Part 2 standard quantities
- Check ISO country alphabetical order
Chad is an Oil, Livestock & Development Economy country that must sustain its finances around crude oil while developing agriculture, livestock, solar power, and basic infrastructure as new growth axes .
Future competitiveness depends on shifting oil imports into non-oil revenue, agricultural and livestock processing, power, water, and transportation infrastructure, and jobs.
It is advisable for South Korea to approach Chad as a market for development cooperation projects in the fields of solar power, agriculture and livestock processing, water management, medical and cold chain, and petroleum facility maintenance, rather than as a general consumer market.
Final evaluation
Chad is a landlocked Sahel country with high country risk, possessing oil potential and an agricultural base, and is evaluated as a “Restricted Development Market + Sahel Oil–Agro Transition Node” from a MarketHub perspective.