Healy Consultants' view on Chad's economic woes

NDJAMENA, Chad - March 31, 2016 - PRLog -- The International Monetary Fund (IMF) has projected that Chad's GDP will contract by 1% this year from 5% growth in 2014 due to plunging crude prices and the negative impact of neighbouring Nigeria's Boko Haram Islamist insurgency. Annual average inflation reached 4% at the end of August 2015, the IMF said in a statement at the end of a review mission to the Central African nation.

"Chad's overall macroeconomic performance continues to be significantly impacted by the deep decline in oil prices and the deterioration of the security situation," said IMF's Mauricio Villafuerte, who led the mission.

Like many Africa oil producers, the impoverished Central African nation has been hit hard by falling crude prices. 2015 also saw a sharp increase in the spill over of Boko Haram violence into Niger, Cameroon and Chad, pushing N'Djamena to help spearhead military operations against the insurgents. This generates both direct costs from Chad's key role in maintaining peace and stability in the region, as well as the costs of hosting refugees.

Until recently, Chad was considered a poor country, lacking in influence and facing a constant threat of rebellion. But this has changed: Chad normalised relations with Sudan in 2010, began producing oil and became a critical military power in the Sahel-Saharan strip in particular, but also further south, in the Central African Republic (CAR). To create stability, the Chadian authorities must open political space and build legitimate and sustainable institutions, capable of outlasting the current regime. In general, Chad has a wealth of opportunities for foreign investors with an abundance of raw materials from minerals to oil, but is currently still ranked as a high-risk country in which to set up business.

About Healy Consultants

For over a decade, the incorporation experts at Healy Consultants Pte Ltd., with their branch in Chad, have been assisting investors worldwide to set up the optimum corporate structure for doing business in the country. The services offered include company registration, banking solutions, accounting and tax and legal services and corporate support services.

Contact us

To inquire more about Chad company setup options and schedule a conference call, email us at email@healyconsultants or call us on +65 6735 0120.