<NREC>Chadtoc Chad: Table of Contents <A>=Chad

 

 

 

TABLE OF CONTENTS

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CHAPTER I   : Executive Summary                         

 

CHAPTER II  : Economic Trends and Outlook

 

CHAPTER III : Political Environment

 

CHAPTER IV  : Marketing U.S. Products and Services

 

CHAPTER V   : Leading Sectors for U.S. Exports and Investment

 

CHAPTER VI  : Trade Regulations and Standards

 

CHAPTER VII : Investment Climate

 

CHAPTER VIII: Trade and Project Financing

 

CHAPTER IX  : Business Travel

 

CHAPTER X   : Economic and Trade Statistics

 

CHAPTER XI :   U.S. And Chadian Contacts

 

CHAPTER XII:   Market Research and Trade Events

 

INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND

U.S. DEPARTMENT OF STATE, 1998.  ALL RIGHTS RESERVED OUTSIDE OF

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<NREC>Chad01 Chad: Executive Summary <A>=Chad

 

 

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I. Executive Summary

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This Country Commercial Guide (CCG) presents a comprehensive look at Chad's commercial environment. The CCG's were established by recommendation of the Trade Promotion Coordinating Committee (TPCC), a multi-agency task force to consolidate various reporting documents prepared for the U.S. Business Community. Country Commercial Guides are prepared annually at U.S. Embassies through the combined efforts of several U.S. Government Agencies.

 

1.   OVERVIEW:

     ---------

     The Republic of Chad is a landlocked country in north central Africa.  Its surface area is roughly three times that of the state of California.  Most of its ethnically and linguistically diverse population of about 7.1 million lives in the south.  Climate, geographic remoteness and lack of infrastructure have hindered Chad's development.  In addition, the first thirty years of its independence since 1960 were marked by outbreaks of war, drought and famine, which severely damaged the country's institutions and its facilities.  However, recent signs of political stability and promising developments in the petroleum sector suggest that Chad is headed for an economic revival.  By the year 2001 an American-led consortium plans to produce between 150,000 to 250,000 barrels of oil a day from three fields in the south in the Doba Basin.

 

     For 1998, Chad's nominal GDP was estimated at just over USD 1.3 billion.  Agriculture and livestock are expected to account for over 40 percent of GDP, industry 15 percent, commerce and transportation 40 percent, import tariffs and taxes are expected to provide the remainder.  Per capita income is estimated at around USD 225.  Cotton, traditionally the major cash crop, accounted for more than half of exports. Gum arabic and  livestock round out the balance of major exports. Over 80 percent of the work force is involved in unpaid subsistence activities such as farming, herding and fishing.  Chad is highly dependent on foreign assistance.  The European Union and France are its principal donors.

 

     President Idriss Deby came to power by military means in December 1990 and was elected by universal suffrage in August 1996.  A new parliament was elected and installed in early 1997.  Chad enjoys a good bilateral relationship with the United States and welcomes American investment and partnership proposals. 

 

 

 

2.   RECENT ECONOMIC PERFORMANCE:

     ---------------------------

     Chad showed little economic progress during most of this

decade, owing to factors described above.  The structure of its economy is similar to that of other less developed sub-Saharan countries with a small formal sector and a large, thriving informal sector.  In mid 1994, Chad began to put in place a coordinated plan for economic growth and stability through a structural adjustment program.  In September 1995 the IMF approved a three-year ESAF credit, equivalent to USD 71 million for Chad.  In January 1996 the World Bank extended an IDA credit of USD 30 million under the structural adjustment program.  As a consequence, real GDP growth for 1998 is estimated at around six percent, accompanied by an inflation rate of just under 3.5 percent.

 

     The (ESAF)reforms of 1995 and 1996 reorganized the indirect fiscal system and custom tariffs, liberalized the economy by stimulating private initiatives and launched new economic activity.  There was a reduction in internal and external debt, and inflation was brought under control.          

 

     In 1997 the structural side showed some progress.  Plans remain to restructure or partially privatize government parastatals. The STEE (water and electricity), TIT (international telecommunications), ONPT (the post office and telephone), and     Cotontchad are scheduled to be restructured. The Banque Meridien BIAO Tchad (BMBT-BIAT) was recently privatized, along with the  l’Office National Hydraulique Pastoral et Villageois (ONHPV). The government also plans to privatize SONASUT (the sugar monopoly) and to begin work on the legal framework necessary to govern new telecommunication and electricity generating companies.  During this period the (COBAC), the Chadian banking commission, rejected the participation of the BICIG, a Gabonese bank  in the holdings of the Banque Tchadienne de Credit et Depots (BTCD).   The banking sector is perceived as stable, but seems to lack a vigorous commercial outlook and the capacity to apply other measures necessary to boost the savings rate.

 

     The GOC’s 1997 economic and finance plan was generally satisfactory even if certain objectives in public financing were not attained.  A real GDP growth rate of 6.5 percent was registered due to  exceptional agricultural production results of over 11 percent, largely based on cotton and an improvement in the industrial sector of 13.7 percent.  The commercial and transportation sector posted a 4.6 percent gain over the previous year.  The construction and public works sector saw a modest increase of only 2 percent.  This was largely due to a slow down in the public investment program.  The inflation rate for this period was 6 percent.

 

 

 

     In 1998 the GOC aims to meet performance targets for increasing its revenues and receipts collections to around 9 percent of its GDP.  A new fiscal measure, the turnover tax (TCA),was initiated in 1997.  Additional revenues in 1998 are expected from the newly installed  Impot General Liberatoire (IGL), a tax levied on small business and the informal sector. However, Chad still needs an investment rate of around 30 percent of GDP to improve its social indicators and to reduce poverty.

 

3.   BEST PROSPECTS/ MAJOR BUSINESS OPPORTUNITIES:

     --------------------------------------------

     In the near term, petroleum offers the brightest hope for a much needed economic transformation.  In November of 1996, the GOC signed an important agreement with an American-led oil consortium to develop reserves of an estimated one billion barrels in the south of the country.  The project will require up to USD 3.5-4 billion in investments to construct a pipeline through Cameroon and to build up other infrastructure.  It is widely hoped that the project will "jump start" Chad's economy by the turn of the century.

 

     Officials also plan for a smaller, separate oil project to tap high grade petroleum deposits at Sedighi, north of Lake Chad.  From there, a smaller pipeline will be used to send oil to a mini-refinery and to a new power plant near the capital of N’Djamena.  This project is expected to dramatically lower domestic energy costs and to reduce hard currency purchases of fuel from Nigeria

and Cameroon.

 

     Some observers believe that Chad's best long term prospects lie in the development of its agriculture and livestock sectors.  The country has mining potential, but few in-depth studies have been conducted.  Gold, marble, natron and diamonds are said to exist in commercially exploitable quantities.  Traces of platinum, tungsten, iron and aluminum have also been found.

 

     TRADE:  Chad's geographic position along the major trans-Saharan trade routes greatly affected its history, but hindered its commercial development and trade access in modern times.  Reliable statistics on trade are difficult to obtain, however, Chad considers its main export trading partners in 1996 to be Portugal  USD 43 million(cotton), Germany USD 14 million, France USD 7 million, United States USD 7 million, and Spain USD 6 million.  Imports partners in 1996 were France USD 75 million(cereals, chemicals, machinery, vehicles), Cameroon USD 52 million, Belgium-Luxembourg USD 16 Million and Nigeria USD 14 million (petroleum). Cotton, cattle (on the hoof), gum arabic, dried fish, and seed oils are the main products exported.  Major imports include machinery and transportation equipment, industrial goods, petroleum products, consumer goods and foodstuffs.  Libya has recently begun to expand its commercial ties with Chad.

 

 

     POLITICAL SITUATION:  In 1996 Chadians voted in a referendum to adopt a new constitution and also voted to select a president.  In early 1997 two rounds of legislative elections resulted in the installation of a new parliament.  The current ruling political party is called the Mouvement Patriotique du Salut (MPS). 

 

     President Deby appointed Nassour Ouaidou Guelengdouksia as Prime Minister to head his new government in May, 1997.

 

     The central government has been largely successful in its campaign to reconcile with armed groups who previously opposed it.  Many former rebels (or codos as they are known) have joined the ranks of the regular army or have returned to civilian pursuits.

 

     While reports of human rights violations continued to be received throughout 1997 and early 1998, the number of such incidents was less than in previous years.

 

     MILITARY:  The Chadian armed forces consist of about 25,000 regular army troops.  The force was downsized under a recent structural adjustment-assisted demobilization program.  In early 1997, more than 7,000 soldiers returned to civilian life.  Unfortunately, no viable reinsertion program was put in place to complement the effort.

 

     LABOR:  Over 80 percent of the workforce is engaged in unpaid subsistence farming, herding and fishing.  Organized labor exists.  The main labor organization is the Federation of Chadian Unions (UST).  A major constituent union, the Teacher's Union of Chad (SET),  recently broke off from the UST.  Neither has ties to the government.

 

     INFRASTRUCTURE:  Chad has great infrastructure needs.  The country has no railroads and only has a few hundred miles of paved highway.  This presents major obstacles to movement during the summer rainy season when the dirt roads are rendered impassable.  Chad has five permanent surface runways for aircraft which operate with basic services.  There are only about 7,500 telephones in the entire country.  Electricity rates are among the world's highest.  There are six banks (none are American) represented in Chad.  Chad has one limited range television station and a fair system of radiocommunication stations for intercity links consisting of one FM and six AM broadcast stations. 

 

     LEGAL SYSTEM:  Law is based on the French Napoleonic Code and Chadian customary law.  A new constitution was adopted in April of 1996.

 

     TOURISM:  Various sites with touristic  potential exist around the country.  The Tibesti Mountains, near the border of Libya and the Zakouma game reserve in the south-east are two prime examples.  However, travel is difficult and there are few facilities to accommodate tourists.

 

     LANGUAGE:  French and Arabic are the official business languages of Chad.  English is increasingly being used.  Sara is common in the south, though more than 100 languages are spoken overall.

 

     RELIGION:  More than half the country is Muslim.  The rest adhere to Christianity or traditional African religions.

 

     EXCHANGE RATE:  Communaute Financiere Africaine Franc (CFAF) per USD 1 = 600  (June, 1998).

    

 

     COUNTRY COMMERCIAL GUIDES ARE AVAILABLE FOR U.S. EXPORTERS FROM THE NATIONAL TRADE DATA BANK (NTDB) ON CD-ROM OR VIA THE INTERNET. PLEASE CONTACT STAT-USA AT 1-800-STAT-USA FOR MORE INFORMATION. COMMERCIAL GUIDES CAN BE ACCESSED VIA THE WORLDWIDE WEB AT HTTP://WWW.STAT-USA.GOV/ AND HTTP://WWW.STATEGOV/. THEY CAN ALSO BE ORDERED IN HARD COPY OR ON DISKETTE FROM THE NATIONAL TECHNICAL INFORMATION SERVICE (NTIS) AT 1-800-533-NTIS.

 

INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND

U.S. DEPARTMENT OF STATE, 1998.  ALL RIGHTS RESERVED OUTSIDE OF

THE UNITED STATES

 

<NREC>Chad02 Chad: Economic Trends and Outlook <A>=Chad

 

 

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CHAPTER II.  ECONOMIC TRENDS AND OUTLOOK

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1.   MAJOR TRENDS AND OUTLOOK

     ------------------------

     Since before independence, Chad's economy has been based on agriculture and livestock raising. These sectors are likely to remain dominant in the years ahead.  What has changed recently is that Chad now has the chance to attract significant private capital inflow as long as it continues to demonstrate macroeconomic stability, capacity building, democratic reform and social progress.  The impact of the multi-billion dollar Doba oil pipeline project offers the country a unique chance to accelerate its investment prospects and to overcome some of the main obstacles to its development: i.e. poor transportation infrastructure and high energy costs.  The big question is whether Chad will be able to manage and invest its future oil revenues wisely.

 

     The country remains heavily dependent on outside assistance, but major donors such as the World Bank (IBRD), the European Union(EU)and France coordinate well with each other and are expected to continue their partnership to help Chad achieve its primary goals of poverty alleviation and economic growth. 

 

     In contrast to Chad's former periods of political turmoil,  there has been a steady improvement in building a framework for democratic government and in social stability over the last several years. Encouraged by donors, the international financial institutions and a Structural Adjustment Program, the Government has begun to disengage itself from key sectors of the economy,  liberalized some pricing, and now promotes more competition.  The Investment Code has been revised. Observers hope that these trends will continue to inspire more confidence-building measures.

 

     Relations with the World Bank and IMF were still on track when the second tranche of the loan under the Enhanced Structural Adjustment Facility (ESAF) agreement with the IMF was approved in 1996.  The total credit under the ESAF is USD 71 million. The second tranche is equivalent to approximately USD 24 million to support the government's 1996-1997 Structural Adjustment Program.

The IMF approved the ESAF  arrangement for the third tranche after  the GOC presented its annual third year program for 1998/1999.

 

     The economic objectives for 1998-1999 are based on a real GDP annual growth rate of 6 percent, an inflation rate of 3.5 percent and the current exterior deficit of 16.5 percent of the GNP.  In this context the government plans to continue to grant  priority to the consolidation of public finance by improving the capacities of the fiscal and customs services, assuring budget and fiscal discipline and accelerating the ongoing privatization program by encouraging private initiatives particularly those directed towards exportation.        

 

     Medium term economic growth in Chad is hampered by constraints of low national savings and a chronic deficit in infrastructure and qualified human resources. In an effort to attack these structural deficiencies, the government strategy for the years 1998-2000 is to aim at improving the global productivity of the economy, by  the reinforcement of production and exportation and by encouraging and promoting the development of the private sector. This strategy will hopefully simulate investment and increase national savings.   

     The Banque des Etats de l'Afrique Centrale (BEAC), the regional central bank and an African public multinational establishment, is responsible for the distribution of money and the transfer of funds  in the seven African countries of central Africa - Cameroon, The Central African Republic, Congo (Brazzaville),The Democratic Republic of the Congo(Kinshasa) Gabon, Equatorial Guinea and Chad, The central bank will monitor and maintain a cautious credit position.  Additional revenues are expected from the newly installed (Taxe sur le Chiffre d'Affaires)  TCA, a quasi-VAT tax scheme.  Further revenue is expected from the IGL (Impot General Liberatoire) a 5 percent flat tax levied on the informal sector and small businesses .

 

     The National Assembly  voted to approve the 1998 budget.  The expected budget receipts are projected in 1998 to reach 118 billion FCFA or USD 196 million.  The government pledges to improve the performance of the fiscal administration, and to reinforce efforts in the fight against fraud and tax evasion.  Current budget expenditures are forecasted to reach $ U.S. 216 million.  There is a budget deficit of USD 20 million. The government is aiming to improve the administrative control of these expenses and has targeted education, health, social affaires and the public works sector as priority recipients. Further spending priorities are to accelerate the reimbursement of internal arrears, and improve the choice and programming of public investment projects.    

 

2.   PRINCIPAL GROWTH SECTORS

     ------------------------

     Chad's development has been handicapped by its landlocked position and poor road system. The nearest sea port, Douala is 1800 km from the capital of N'Djamena.  Surface transportation is practically impossible during the rainy season (June to October), particularly in the south.  Chad's rural economy is mostly based on subsistence production of food crops. Potential for growth in agriculture and related industries is good. Livestock, cotton and gum arabic represent the major source of cash income for the rural population. Cotton accounts for 50 percent of export earnings.  The balance consists of livestock 30 percent, gum arabic 10 percent,  natron, peanuts, fishing, seed oils etc.  Agriculture production, except for cotton, has remained somewhat static over the last few years but represents a ready source for future growth.

 

     There is plenty of opportunity for increased private sector involvement in Chad's economy.  In the near term the oil sector holds the greatest promise.  By the year 2001, a consortium, led by Exxon in partnership with Shell and Elf, plans to have oil flowing from Chad's Doba Basin through a pipeline running 1000 km across Cameroon to the Port of Kribi on the Atlantic coast.  The initial flow of 150,000 barrels/day (b/d) should eventually rise to 250,000 b/d.  The three oil fields of Bolobo, Miandoum and Kome are expected to produce an estimated 1 billion barrels over a 30 year period.   A recently signed memorandum of understanding defines ownership of the pipeline as follows: Exxon (32%), Shell (32%), Elf (16%), Chad (5%) and Cameroon (15%).

 

     There is a potential for considerable growth in the mining sector. Several geological and mineralogical research projects were initiated by the Directorate for Geological and Mining Research (DRGMR) and funded by the United Nations through the United Nations Development Program (UNDP).  Primary results are encouraging.  The government is also interested in beginning a systematic geological survey of the country, and in compiling an inventory of mineral resources.  The country could possibly have large deposits of precious and industrial metals.  It is also possible that Chad has undiscovered mineral deposits.  Gold is presently being exploited in the Mayo Kebbi and in the Lake Lere area by INMET of Canada.  Base metals, copper, silver, and zinc have been discovered but are uneconomic to exploit. There is excellent potential for the discovery of other metals such as tin, tungsten, iron ore, bauxite and other minor metals.

 

     Light industry could show more potential if the cost of electrical generation could be reduced to more or less than half of the present kilowatt hour (KWH) rate.  The telecommunication sector has potential for modernization and growth with the addition of digital switching, cellular, mobile, paging and other applications and  services.  There is potential for growth in the construction of housing, hotels, buildings, works, roads  bridges, as well as in transportation, public works, health, sanitation, and social development sectors.

 

3.   GOVERNMENT ROLE IN THE ECONOMY

     ------------------------------

     The Chadian Government encourages foreign direct investment and trade. The Government is a partner in several parastatals, but is increasingly moving out of this role.  There has been steady  progress towards privatization, and there is plenty of opportunity for investors wishing to participate in restructuring the country's parastatals. 

 

      The Banque Meridienne BIAO au Tchad (BMBT) has passed into private hands.  The Banque de Developpement du Tchad (BDT) began purchasing its own shares in 1993.  Bank intermediaries are searching for future partnerships.  The Banque Tchadienne de Credit et Depots (BTCD) is equally looking for partners. The Societe Nationale d'Entretien Routier (SNER), Air Tchad, Societe Nationale Sucreriere du Tchad (SONASUT), The Hotel Chari, are all targeted for privatization.  The Office Nationale des Postes et Telecommunications du Tchad (ONPT) has been separated from Telecommunication Internationale du Tchad (T.I.T.).  The Societe Tchadienne d'Eau et d'Electricite (STEE) will experience the disengagement of the state's ownership of 72% to 43%, with 57% available for private investors.  The Abattoir Frigorifique de Farcha is also scheduled for privatization. Many of these privatization plans have been slow to materialize.

 

     The government has finalized the work of adapting Chadian legislation to meet terms defined within the Traite d’Harmonisation du Droit des Affaires en Afrique (OHADA). The OHADA treaty  promulgates general commercial and corporate rights, guarantees  the procedures for the recovery and collection of debts, taxes, discharge of liability, claims and entitlement rights among 17 other West and Central African nations.  The treaty  intends to extend harmonized laws to include labor and transportation rights.  

    The government will continue to seek to attract development projects funded by multilateral donors such as the World Bank (IBRD), African Bank of Development (AfBD) and others having the capacity to help Chad finance its future.

 

 

 

4.   BALANCE OF PAYMENTS:

     --------------------

     The Chadian economy is heavily dependent on external aid.  France  contributed over 400 million USD between 1990-1996 or roughly 30% of all international financial assistance. The European Union (EDF-FED), Chad’s largest donor, contributor over $ U.S. 200 million in 1996.  The major portion of this aid went towards structural adjustment, infrastructure development and targeted projects.

 

     To date the improved debt picture is reinforced by a modest surge in economic activity and cautious confidence in the non- agricultural sector.  The agriculture sector on the other hand has registered for the 1996/1997 season a record 212,000 tons cotton harvest.  Gum arabic exports in 1998 are expected to be 12,000 tons. 

    

     More recently Chad has seen a slowing in its external current account deficit. In 1998 the external currant account deficit should be brought to within 17 percent of the GDP, a decrease of 3 point, largely due to a 7 percent increase in export revenues.  Nevertheless, the Chadian trade account remains in the red as a result of the country's high dependency on imported oil which is needed to operate the transportation and electric  power generation sectors.

 

     An improved debt picture for Chad will likely come with the expected boost to be derived from oil exports and greater self-sufficiency in energy. In addition agriculture and livestock raising are likely growth sectors which could improve future balance of payments.       

 

5.   INFRASTRUCTURE

     --------------

     Chad's infrastructure is considered poor even by developing country standards.  Roads and bridges are under-maintained and often unsafe.  Chad's telephone and telecommunication system is capable of direct dialing worldwide, but the service is expensive.  To date, there is no cellular service.  E-mail systems and Internet access is available.  There are several flights weekly from Paris as well as connections to other African countries.  There is a national airline which does not provide regular  in-country service.  A number of private charter companies that provide service to outlying regions.  The postal system, which offers express mail service along with the international courier system, is efficient.  Utilities are expensive and unreliable in the capital and practically non-existent in the rest of the country.

 

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U.S. DEPARTMENT OF STATE, 1998.  ALL RIGHTS RESERVED OUTSIDE OF

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<NREC>Chad03 Chad: Political Environment <A>=Chad

 

 

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CHAPTER III:   POLITICAL ENVIRONMENT

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1.   NATURE OF POLITICAL RELATIONSHIP WITH THE U.S.

     ---------------------------------------------

     The U.S. enjoys a good bilateral relationship with Chad.

Although the USAID office in N'Djamena closed in 1995, and the Peace Corps suspended operations in 1998, the U.S. continues modest assistance through food aid, military cooperation,   democratization and humanitarian programs.  For much of the early part of this decade, the USG was sharply critical of human rights practices in Chad.  While reports of human rights violations continued to be received throughout 1997 and early 1998, the number of such incidents was less than in previous years and the overall situation improved.

 

2.   MAJOR POLITICAL ISSUES AFFECTING THE BUSINESS CLIMATE:

     ------------------------------------------------------

     Since independence in 1960, war, drought and famine have severely damaged Chad's institutions, its infrastructure and its chances for outside investment.  However, the country is currently exhibiting signs of political stability, social reform and economic recovery.  Chad is at peace with its neighbors: Cameroon, Nigeria, Niger, Libya, Sudan and the Central African Republic. Reform of the judicial system to include the establishment of an up to date  investment code is a top government priority.  

 

     While most armed opposition groups (or codos as they are known) have reconciled with the government, there are still occasional confrontations on the border areas between troops and rebels.  However, most former rebels have joined the ranks of the regular army or have been reintegrated into civilian life.  The Chadian army has been downsized.

 

3.   BRIEF SYNOPSIS OF THE POLITICAL SYSTEM, SCHEDULE FOR

     ----------------------------------------------------

     ELECTIONS AND ORIENTATION OF MAJOR POLITICAL PARTIES:

     ----------------------------------------------------

     The Government is headed by President Idriss Deby who has been in power since 1990.  In 1996 Chadians voted to adopt a new Constitution and also voted to select a President. In early 1997 two rounds of legislative elections resulted in the installation of a new Parliament.  Municipal and regional elections will follow but are not yet scheduled.

 

     Political parties tend to be based on personalities, ethnic ties or regional groupings, as opposed to an agenda based on issues or ideologies.  The current ruling political party of president Deby is called the Mouvement Patriotique du Salut (MPS).  Other major parties include the URD (party of Southern General Wadal Abdelkader Kamougue, now President of the National Assembly), UNDR (party of  Minister Saleh Kebzabo) and Ngarlejy Yorongar's FAR party.  Nassour Ouaidou Guelengdouksia became Prime Minister in the  Government formed in May 1997 after the national assembly elections.

 

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U.S. DEPARTMENT OF STATE, 1998.  ALL RIGHTS RESERVED OUTSIDE OF

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<NREC>Chad04 Chad: Marketing U.S. Products and Services <A>=Chad

 

 

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CHAPTER IV:  MARKETING U.S. PRODUCTS AND SERVICES

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     Marketing in Chad requires patience, cultural sensitivity and a knowledge of the country and its people.  It is essential to make important business and government contacts in person and "to get to know the territory."  Business languages are French and Chadian Arabic.  Few people speak English, so it is often worthwhile to engage an interpreter.

 

1.   DISTRIBUTION AND SALES CHANNELS:

     -------------------------------

     The Chadian market is not sophisticated, with undeveloped manufacturing and service sectors.  There is not a large variety of local or imported products available. Distribution of goods within Chad is conspicuously deficient, due to the underdeveloped road and telecommunication infrastructure.  Distribution is unstructured.  Certain sectors are dominated by international brokerage firms.  A number of international and local companies, i.e., beverage, computer, photocopier, etc., maintain a distribution network.  The principal method of selling is through retail points in local market places and stores.  Prospective companies may want to select a local representative, agent, or sales force organization with distribution infrastructure and service facilities.

 

2.   USE OF AGENTS, DISTRIBUTORS, FINDING A PARTNER:

     ----------------------------------------------

     Foreign firms generally use local agents and distributors.  Firms base their selection criteria upon ability to provide adequate representation, existing distribution infrastructure and after sales capabilities. Chad's distribution infrastructure is traditional.  Supplies are moved by vehicles such as carts drawn by animals, camels, horses. Trucks play a major role, despite poor road conditions. Goods are often sold and resold many times before they find their way to local markets, make-shift roadside tables, shacks and stalls.

 

     Selection of a local business partner requires time.  U.S. firms may occasionally succeed without local representation on unusual or unique projects.  A prospective partner should know the market and understand the economy.  Exporters should visit Chad to gain firsthand knowledge of the country.  Local agents/distributors are not exclusive and carry many product lines.  European competitors working with local companies have years of experience and often express proximity and long-term cultural relationships as a marketing advantage.  Credit lines, lead times, shipping logistics, after sales services, and financing questions are important issues and are paramount to success or failure.  Long-term relationships are based on trust.  For ongoing business and sustained market penetration, working with Chadians or long-term expatriates is recommended. The U.S. Commercial section of the embassy can help exporters locate agents and distributors through the Agent Distributor Service (ADS) program.  Information regarding this program is available through the Commercial Service district offices located in all 50 states and Washington, D.C.  For further information, exporters may contact the following U.S. government agencies:

 

     Economic Bulletin Board (EBB)

Telephone: (202) 482-1986, Fax (202) 482-2164

Can assist with trade leads and the latest trade and economic information.

 

     Reach Strategic Venture Partners (RSVP)

Small Business Administration (SBA) Office of International Trade Telephone: (202) 205-7272.

The SBA has information on international joint-venture opportunities for small and medium-size companies.

 

     Trade Information Center (TIC)

     Trade Promotion Coordinating Committee

     1-800-USA-TRADE 1-800-872-8723

 

     U.S. and Foreign Commercial Service

     Export Assistance Network

     Office are located in all 50 states and Washington D.C.

 

     U.S. Embassy N’Djamena

     Commercial Section

     Ave. Felix Eboue, B.P. 413 

     N’Djamena, Chad

     Tel: (235) 51-70-09   Fax (235) 51-56-54

 

3.   FRANCHISING:

     -----------

     Major franchising systems in Chad are not anticipated. Current conditions are not likely to favor major franchising systems in the near future. However, some small international car rental companies and hotel chains exist. Food, service and other types of franchises are possibilities, but factors such as transportation, hygiene standards, energy, and poverty may impede such an initiative.

 

4.   DIRECT MARKETING:

     ----------------

     In the future, improvements in the economy, roads, and communications will allow for an expanded range of direct market practices.  Some major Japanese and French automobile dealers are successful and remain unchallenged by U.S. automobile manufacturers. The majority of goods sold in Chad are from wholesale import/export houses.  Examples include clothing, grains, flour, pharmaceuticals, personal care products, foodstuffs, hardware, household goods, appliances, televisions, and radios.  Many of these products enter Chad through informal channels.  Collusion among smugglers, border patrols and customs agents is evident and due in part to extended family and tribal cross-border associations developed prior to colonial and national control.  Unofficial imports consist of petroleum products, consumer goods, sugar, soap and cigarettes, creating a parallel grey market with a secondary distribution/retail system.  There are no major modern retail outlets in Chad.  Most retail businesses are small-scale, proprietary operations. These businesses are grocery stores hardware stores, auto parts stores, etc.  

 

5.   JOINT VENTURE/LICENSING:

     -----------------------

     Chadian law permits and encourages joint venture partnership.  100 percent U.S. ownership is allowed. As a primary means of investing in the country, several U.S. companies have already investigated joint-venture opportunities in the textile, agricultural and transportation  sectors.  Some U.S. joint venture operations exist in Chad through U.S./French agreements.  Earth-moving equipment, building construction, engineering, development planning, hotel construction, airports, bridges, and schools are distinct possibilities.

 

     Licensing:  Most U.S. licensors find that prospective Chadian partners with manufacturing and marketing skills and capabilities are nearly non-existent.  Patent and licensing attorneys and societies are not available.  Observance of intellectual property rights, trademark and patents is rare.  Protection against copyright infringements can not be guaranteed.  Counterfeits of well known trademarks in personal care products, sports equipment, textiles, watches, etc. are available on the local market, but are not produced locally.

 

6.   STEPS TO ESTABLISHING AN OFFICE

     -------------------------------

     Organizing and registering an office in Chad can be time consuming since the Chamber of Commerce, Industry, Agriculture and Artisans does not provide anything like a one-stop shopping service.  It is difficult to find economic, commercial and investment information for investors interested in establishing a business in Chad.  The request to establish an office is usually carried out by the interested  individual in person or by a local attorney.  There are several types of business arrangements which are available to interested investors:

 

     Foreign branch office (succursale):

    

                        A foreign company may install a business in Chad in the form of a branch office ( or "succursale") or through the representation of the foreign company by a Chadian partner.  The documents required are: A license/authorization to do business in Chad from

the Ministry of Commerce; a memorandum and articles of association of the company; minutes by the governing body of the interested party (association board president, director, manager, etc.) along with the name of the designated empowered foreign or local company representative.

 

Limited liability company: Societe a Responsabilite Limite (SARL):

    

      SARLs are a type of corporation requiring a minimum amount of capital in relation to the activity performed by the company.  Category B1 import company minimum capital requirements are USD 40,000.  A category B2 export company requires USD 20,000.  Category C wholesalers require USD 20,000.  Category D wholesale-retailers require USD 10,000 and categories E and F (small to larger retailers) require USD 2,000 to USD 500.

 

     The capital must be available at the moment of corporate creation, as a SARL can exist only as a commercial entity.  A minimum of two individuals are needed to make up the association of a SARL, but somewhat confusingly the law states that SARL partners are not permitted to cede parts of the operation without the consent of 3/4 of the association.

 

Corporation Societe Anonyme (S.A.)

 

     A "Societe Anonyme" has the same characteristics as a "Societe Anonyme Francaise."  French corporate law of 24 July 1966 stipulates that there must be at least seven shareholders.  Financial responsibility is limited to each individual's financial contribution of capital.  There is no minimum capital investment requirement; nevertheless, the law 011/MCI/SE/DG/DC/89 imposes a minimum capital scale as for SARLs according to the activity:  for category B1 and B2  USD 40,000 to USD 10,000, category C USD 20,000, category D USD 10,000, category E USD 2,000, and category F USD 500.

 

                                                     All business entities, foreign branch offices, limited liability companies and corporations are required to:      Register a

copy of the company by-laws with the Ministry of Finance (Service d'Enregistrement, des Domaines et du Timbre; Obtain a work permit (carte du commercant etranger); Register the company by-laws with the court clerk (Greffier du Tribunal d'Instance) at the Ministry of Justice; Make a formal announcement through legal journals/newspapers proclaiming the existence of the company;

Make a declaration of the company to the Ministry of Finance, tax and central fichier and fiscal control (Fichier Central du Controle Fiscale); Register the company with the commercial registry;

Declare the existence of the company to Social Security Agency.(Caisse Nationale de Prevoyance Sociale); Declare the company's existence to the Ministry of Civil Service (Ministere de la Fonction Publique, du Travail, de la Promotion de l’Emploi et de la Modernisation), Office of Labor Inspection (l'Inspection Provincial de Travail - IPT);     And, file a declaration with the

National Employment Office. (l'Office Nationale pour la Promotion de l'Emploie, ONPE).

 

     An administrative authorization is supplied allowing the individual(s) to conduct commercial activities.  The authorization originates from the Ministry of Commerce and Industry.

 

Small and medium-size enterprises and industries (PME/PMI):

 

     PME/PMI should comply with the following conditions: The operating capital and management must be a majority of Chadian capital and ownership; Capital must be less than USD 200,000.

 

     Commercial work permit / Carte de commercant etranger:

     Foreigners who engage in a commercial activity are required to submit to several conditions in order to obtain a Chadian-style Green Card or "Carte d'Etranger Commercant, Industriel et Artisan."  Applicants are personally responsible for all debts.  A work authorization is required for all corporate presidents and managing directors of societes anonyme (SA) and all individuals who manage SARLs (limited liability companies) as well as individuals who operate a foreign branch office or agency. The following are the important items necessary to obtain a work permit. a) two application forms; b) a medical certificate with an expiration date under three months, c) Copies of the following are required: an individual police/criminal record (extrait de Casier Judiciaire), by-laws of the company, a long term visa (Carte de Sejour),a birth certificate, an administrative authorization to work from the Ministry of Commerce and Industry, the registration act of the commercial registry, the fiscal registration issued by the Ministry of Finance, Office of Service d'Enregistrement, des Domaines et du Timbre, with the fiscal data stamps, a letter of corporate intentions and functions, the annual merchant trading license(patente), the proof of a bank account, copies of diplomas, curriculum vitae, two passport-size photographs and two fiscal stamps.

 

7.   SELLING FACTORS / TECHNIQUES

     ----------------------------

     Since ancient times Chad has been a country of traders.  The former kingdoms of Kanem, Borno and Ouaddai built their power base on trade with what is now Libya and Sudan.  In recent times trade has increased with central African countries and Nigeria. 

 

     Chad, like so many other ex-colonial francophone countries, maintains strong cultural, historical and economic ties with

 

France. France is one of Chad's principle suppliers and commercial  partners.

 

     Certain Chadian ethnic groups, some members of the Lebanese community, and many French expatriates play a vital role in Chadian business.  People in these groups have often been educated in business administration in Europe and the United States and are often familiar with new markets and products.

 

     Chadian business values are often markedly different from those familiar to Americans.  Chadians  tend to be less constrained by rigid business standards.  There is usually a preference to develop a broad base of understanding and personal contact before conducting business discussions.  Americans prefer the "get down to business" approach.  The Chadian "face to face" method of business and association is designed to build mutual trust and understanding.

 

     Every effort should be made to visit Chadian clients in person, to understand the country's traditions, its social composition, its geography and limited infrastructure.  More and more young Chadians are becoming entrepreneurial individuals who look beyond the traditional European  markets.  They often find the imagination and technology of U.S.  marketing and sales approaches refreshing and inspirational.  Chadian exposure to U.S. marketing techniques and methods through U.S. education and cultural exchanges can potentially lay a foundation for future business opportunities.

 

8.   ADVERTISING AND TRADE PROMOTION

     -------------------------------

     There is very little advertising and sales promotion in Chad at present.  There appear to be no near-term plans by the major advertising groups to establish representation in Chad.

 

     There is one daily and several weekly news publications circulating in N'Djamena and other major Chadian cities.  Weekly newspaper runs are limited in quantity and distribution, and circulation figures per journal are small due to a small customer base, transportation costs, literacy rates, and price considerations.

     The most widely read weekly paper is the N'Djamena-Hebdo which is an independently-owned paper.  Other important  newspapers are Contact, Le Progres, L’Observateur, Le Temps and Tchad & Culture.  Contact information for the Chadian news media (print, radio, and TV) is listed in Chapter 11.

 

     Few people own televisions but many own transistor radios.  There are only two movie theaters in town: the RIO & SHEHERAZADE. There is limited short film advertising of products (either on TV

 

or in the theaters)  Chadians are not familiar with audio-visual or newsprint consumer oriented advertising.

 

     Trade promotions and fairs are unknown to the general public.  Several attempts were made in the past to organize such events.  No trade expos are planned for 1998/1999.

 

9.   PRICING PRODUCT

     ---------------

     U.S. export companies can invoice in French francs.  Billing invoices should be computed on a Cost and Freight basis (C & F).  Exporting companies have difficulty finding multinational shipping insurance firms to ensure indirect air or sea shipments to Chad.  The insurance portion of the delivery cost is organized by the shipper or consignee.

 

     Local commercial credit is extremely difficult to obtain.  Commercial transactions should be through an irrevocable letter of credit confirmed by a reputable bank. Credit terms of up to ninety days are available.  European banks with U.S. corresponding or non-corresponding banks may offer more generous terms.  Transport companies (transitaires et agents sous-douanes) can assist with import/export formalities.  Local N'Djamena banks are able to handle payment guarantee services, and documentation.

 

10.  SALES SERVICE/CUSTOMER SUPPORT         

     -------------------------------

     Sales services support is available for some hi-tech construction equipment, computer hardware/software, office equipment, photocopiers, air conditioners, and major household appliances.  These services are provided by the distributor.  After-sales support is essential, and stocks of spare parts must be readily at hand to ensure market success.  Service manuals must be in French.

 

11.  SELLING TO THE GOVERNMENT

     -------------------------

     The Chadian government from time to time announces procurement tenders.  These tenders are published in the local press.  Legal tenders (appel d'offres) are usually the responsibility of each ministry, which works in conjunction with the Ministry of Finance, and Economy (Ministere de Finance et de l'Ecomomie) to draft and announce the procurement tenders. 

    

     The Minister of Finance and Economy together with his staff act as the National Authorization Office (NAO) for receiving and deciding tenders on behalf of the requesting ministries. Large procurement are usually financed by the  multilateral lending institutions.  In addition, host country procurement called "prudent shopping" is available to the various government

ministries for small project expenditures.  All procurement tenders are subject to free and open competition.

 

12.  PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT:

     ---------------------------------------------

     Chadian intellectual property rights are governed by the Bangui Treaty of March 1977.  The Treaty provides protection for intellectual property rights of signatory members of several west and central African nations.  An earlier treaty, the Libreville Treaty of September 1962, created protection of industrial property rights to include inventions, patents, industrial design models, trail testing, commercial names, trade marks, appellation control, and unfair practices and competition.

 

     The African Organization for Intellectual Property (OAPI) headquartered in Yaounde, Cameroon, was created in order to explain and clarify contentious matters within the Bangui Treaty.  Rights to industrial property are deposited with the headquarters of the OAPI, at the following address: B.P. 887, Yaounde, Cameroon, tel: (237) 20.39.11/20.29.90 fax: (237) 20.18.44. The local Chadian branch office of the African Organization for Intellectual Property is located within the Ministry of Finance and Economy, B.P. 442, N'Djamena, Chad.  Contact person is Mr. Andre Ndjeboua, tel: (235) 52-21-79, Fax: (235) 52-27-33.  This branch of the OAPI can accept filings of registrations.  These filings are therefore valid for all OAPI member states (Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Congo, Cote d'Ivoire, Gabon, Guinea, Mali, Mauritania, Niger, Senegal, Togo).

 

     Literary property rights in Chad are coordinated between UNESCO and the (OMPI) "Organization Mondiale de Propriete Intellectuelle" based in Geneva, Switzerland, and the Ministry of Culture, Youth and Sport (Ministere de la Culture, de la Jeunesse et du Sport), B.P.628, N'Djamena, Chad, tel: (235) 52-55-38.  Contact person: Mr. Kalo Boulaye.  The Chadian office with the OMPI and Ministry of Culture and Youth.

 

13.  NEED FOR A LOCAL ATTORNEY

     -------------------------

     Chadian law is in multiple stages of transition.  The Executive and Legislative branches of the government are presently engaged in enacting new legislative measures regarding judicial, fiscal and social issues.  The Chadian legal system derives from the French system.  Corporate law as practiced in Chad derives from French law.

    

     A major portion of the French legal system remained in place after independence in 1960.  French law is often used and consulted as a reference.  The establishment of an American firm in Chad is often a costly undertaking. Regulations and procedures concerning start-up issues are best handled and readily understood by local attorneys and/or other consultants. You can contact the U.S. Embassy Commercial Section for a list of attorneys.  International financial consultants are listed in Chapter 11.

 

14.  PERFORMING DUE DILIGENCE/ CHECKING BONA FIDES OF BANKS

     -----------------------------------------------------

     AGENTS AND CUSTOMERS

     --------------------

     Price-Waterhouse, the international accounting and business advisory company in N’Djamena can perform due diligence and bona fides services. ( See Chapter 11, list of international accounting firms)   

 

INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND

U.S. DEPARTMENT OF STATE, 1998.  ALL RIGHTS RESERVED OUTSIDE OF

THE UNITED STATES

 

<NREC>Chad05 Chad: Leading Sectors for U.S. Exports & Investments <A>=Chad

 

 

----------------------------------------------------------

CHAPTER V: LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT

----------------------------------------------------------

 

1.   BEST PROSPECTS FOR NON-AGRICULTURAL GOODS AND SERVICES

     ------------------------------------------------------

  1. Electric Power Systems

  2. Construction, Mining, and Agriculture Machinery and Equipment.

  3. Drugs/Pharmaceuticals and Medical Products.

  4. Telecommunications Equipment and Services

  5. Food Processing/ Packaging Equipment

 

     Non-agricultural goods and services best prospects:

 

     In 1996 the Chadian import market (CIF value) was estimated to be USD 256,000,000.  Europe, at 38 percent, was the largest supplier, followed by UDEAC/non-member African nations with 15 percent.  Asia supplied nine percent of the market and other countries provided a combined 30 percent total.  The United States share of the market was 7 percent.  The import market is projected to grow at five to six percent per year until 2000.

 

     Principal U.S. exports include: pharmaceutical products,

flour milling products, malt, starchy food gluten, industrial chemicals, organic and non-organic, cellulose acetates, tire tubes,  new and used tires for buses and trucks, paper products,  grease-proof paper, rags, used and new textiles and shoes. steel, cable and tubes, tools and hardware, compressor parts, pumps, air conditioners, etc.

 

     The most pressing items needed for Chad's infrastructure development are:

 

 1.  Electric power Systems (ELP)

         

     Data Table (in USD Million)     1996     1997     1998 E

 

     a)Total market size              n/a    20.0     17.0   

     b)Total local production (KWH)   92.0   92.0     85.0

     c)Total Exports                  n/a     n/a      n/a

     d)Total Imports                    0        0        0

     e)Import from the U.S.             0       0        0

    

     The above statistics are non-official estimates.

 

     Comments:  The energy production sector of Chad is very undeveloped. The production and distribution of energy in N'Djamena was seriously hampered in early 1997 due to partial destruction by fire of the central power station.  More recent problems have been caused by fuel shortages and technical failures resulting in extended power outages.  Electrical output has been seriously reduced and a immediate solution is not foreseen .  The machinery is over 30 years old and has produced in excess of 100,000 KWH.

 

     The national electrical and water company, STEE (Societe Tchadienne d'Eau et d'Electricite), is a parastatal company presently owned by the Chadian government (81.28%) and the Caisse Francaise de Developpement (CFD) (18.72%).  The government is interested  in privatizing the STEE.  The exterior debt of the STEE is estimated at USD 36 million, a deficit of four times the operating capital.  Reorganization and investment costs have been examined and the level of investment is fixed at USD 40 million.

 

     The cost of kilowatt hours (KWH) in Chad is one the most expensive in the world. The STEE (electricity)serves only 15 percent of the capital city’s population of 700,000 and only 1.5 percent of the population of the entire country. This is one of the lowest electricity density rates in the world. Approximately 60 percent of the cost stems from lubricant and combustible materials imported from Nigeria and Cameroon.  An additional 20 percent of the KWH price structure goes to amortization costs.

 

     There are several intermediate solutions at hand.  First, the leasing option where the state is a minority and the private sector a majority share holder.  Second is the possibility of operating the electric and water portions independently.  Finally, eliminate altogether the continuation of government patrimony in the STEE.

    

     The Chadian government has undertaken an international marketing effort to promote opportunities for foreign investment in the electric power generation and electrical transmission sector.  There is a real opportunity for U.S. interests to participate in this venture and play a key role towards the infrastructure  development of Chad.  Similar opportunities have proven successful elsewhere in West Africa.

 

 

 2.  Construction Equipment (CON), Mining Equipment(MIN),               Agricultural Machinery and Equipment (AGM)

 

     Data Table  (in USD Millions)     1996     1997     1998 E

    

     a)Total market size                 n/a       n/a       -

     b)Total local production              0         0        0

     c)Total Exports                  0         0         0

     d)Total Imports               50.0    52.0     55.0

     e)Imports from the U.S.        1.6     1.8       2.0 

    

     The above statistics are unofficial estimates.

 

     Comments: Construction equipment CON)for roads, bridges  macro infrastructure programs are required.  Road and transportation development is far behind the rest of the developing world.  A small portion of the road system is paved.  A major portion of the roads are impassable for motor vehicles in the wet season.  Bridges are insufficient. There are no railroads. 

         

     Mining equipment (MIN) has increasing interest and importance.  Besides the large petroleum project in Chad, there is the enormous mining potential for gold and other mineral deposits which are just getting underway or are under serious consideration.  If any of the proposed projects go forward, U.S. companies would be well placed to provide heavy earth moving equipment. The new mining code plus the interest in MIGA activities is an encouraging sign of commitment to this sector and a stimulant to sector growth.

 

     Agricultural machinery and equipment (AGM)is lacking in Chad.  Agriculture is the predominant economic activity in Chad.  With the privatization of COTONTCHAD, and SONASUT, tractors or small cultivating machinery could become an attractive best seller.

 

 3.  Drugs, Pharmaceuticals (DRG), Medical Supplies (MED)

 

Data Table (in USD millions)  1996        1997     1998 E

    

     Total market Size              n/a         n/a      n/a

     Total local production        1.8      1.9      2.0

     Total Exports                   0        0        0

     Total Imports                 7.0      7.0      7.0

     Imports from the U.S.         1.0      1.3      1.0

 

     The above statistics are unofficial estimates.

 

     Comment:  Chad is essentially rural.  The mortality rate is estimated at 16.3/1000 inhabitants.  Infant mortality is exceptionally high with 130 deaths/1000.  Life expectancy is 50.3 years.  Women on the average live seven years longer than men, 54.5 and 47 respectively.  There are 100 women for 93 men.  The nomad population has more men than women.  There is a deficit of adult males due to civil war or migration to other countries.  The Chadian population is characterized by its youth.  50% of the population is comprised of people 20 years or younger.

     The working population is approximately 2.5 million people, including 80 percent who work in agriculture, raising livestock, and fishing.  This ratio represents the character of the agricultural and industrial mix of Chad.

 

     Chad ranks among the poorest countries. Major living standard improvements and priorities need to be given to (1) increasing the literacy rate, (2) expanding educational ,(3)fighting against poverty and (4) expanding and improving the quality of health care. 

     The health care system needs improved accessibility to essential low cost generic drugs, and increased local pharmaceutical production and distribution.  In addition Chad needs to strengthen health services, establish a network of district health facilities, train health personnel and promote participation in health services.  Here again, the U.S. can benefit in this sector with a host of products:  Pharmaceuticals, over the counter preparations, generic drugs, hospital and medical supplies etc.

 

 4.  Telecommunications Equipment(TEL) and Services (TES)

 

     Data Table (in USD millions) 1996       1997      1998 E

 

     a)Total market size(Pop)      n/a       16.0      18.0

     b)Total local production      0          0         0      

     c)Total Exports               0         16.0      18.0

     d)Total Imports               0          0         0 

     e)Imports from the U.S.       0          0         0

 

     The above statistics are unofficial estimates.

 

      Comment: The telecommunications sector in Chad will change. The GOC has demonstrated that it is serious about privatizing its telecommunications sector.  Telecommunication legislation, market liberalization and restructuring efforts are proceeding slowly but steadily.  Foreign companies already in place may enjoy an initial upper hand over new-to-market U.S. firms, but the opportunities in Chad are about to present themselves.

 

     Chad is currently debating the different aspects of a proposed restructuring plan and parastatal reform. PTT operations are currently handled by two distinct parastatal entities.  L’Office National des Postes et Telecommunications (L’ONPT) is a state owned

monopoly which operates and regulates the postal system and the domestic telephone service.  The societe des telecommunications Internationales du Tchad (TIT) is the international telecom service operating in a partnership arrangement between the GOC and the

 

French companies Societe France Cables et Radio (FCR)and Alcatel Telspace.

 

     Chad lags behind the rest of the world in average telephone density. The country has 11 lines per 10,000 inhabitants, compared to 46 lines per 10,000 for the average of all of Africa’s other sub-Saharan countries.  The Chadian telephone network possess only 7,500 lines. Efforts are underway to expand the system, but there is already a backlog of over 4,300 pending service request.   At the current rate of installation, an average customer faces a 7 year wait for a new telephone line and instrument.

 

     The GOC‘s priority objective is to meet basic private, government and commercial needs for modern telecom services and equipment through private investment and partnerships. The restructuring strategy will take place in two phases.  The first phase will complete the legal framework necessary to govern two new telecommunication  and postal companies.  The plan calls for the separation of the post office (ONPT) from the domestic system (Telecommunications Nationales de l’ONPT) and from the TIT.  The GOC ministry in charge will also establish a new separate regulatory agency.

 

     The second phase of the restructuring process will entail the development of operating and marketing strategies for access to new communication and information systems.  The final step in this process is preparation for the liberalization, and eventual privatization of the telecommunications sector.  The plan calls for  sale or concession of government assets to private sector providers and partners.         

 

The GOC’s withdrawal from direct involvement in the

telecommunications sector should offer investment or partnership opportunities for U.S. telecom firms. The government recognizes that no single operator is likely to finance the enormous investments needed to develop a modern telecom network in Chad.  

 

 5.  Name of Sector: Food Processing and Packaging Equipment(FPP)

    

     Data Table                    1996     1997     1998 E

 

     a)Total market size            n/a       n/a       n/a

     b)Total local production       n/a       n/a       n/a

     c)Total Exports                n/a      n/a       n/a

     d)Total Imports               16.0     17.0     18.0

     e)Imports from the USA         0.2      0.3       0.5 

 

     The above statistics are unofficial estimates.

 

     Comments: Food processing and conditioning equipment along with up to date technology for drying and canning  would enable the agricultural sector to add value to the existing structure of production and export potential to the immediate region.  The Chadian Agro-industry is in need of modern food processing equipment, and technology applications.  Fruit, fresh produce, meat and fish are grown and produced locally.  The sector requires expertise in the areas of management, financing, packaging, distribution, production  technical assistance and marketing.  

 

2.   BEST PROSPECTS FOR AGRICULTURAL PRODUCTS

     ----------------------------------------

 

  1. Grain: Wheat, Corn, Rice.

  2. Livestock Raising, Tanning and Animal by-Products.

  3. Powder Whole Milk.

 

     Agriculture best prospects:

 

 1.  Name of Sector: Cereals/Grain: ( Wheat, Corn, Rice)  

     PS&D Commodity Heading: 0410000, 0440000, 0422100

    

     Data Table                   1996       1997     1998 E

    

     a)Total market Size          174K MT   243K MT   257K MT

     b)Total local production          167K MT  236K MT   250K MT

     c)Total Exports                0           0         0 

     d)Total Imports                6K MT     7K MT     7K MT

     e)Imports from USA              0           0         0

        K MT= Thousand Metric Tons

    

     The above statistics are unofficial estimates.

 

     Comments: Chad's  economic development will depend largely on agriculture.  Agriculture and livestock provide a livelihood and employment for some 80 percent of the population.  Sorghum and millet are Chad's most important subsistence crops.  These crops account for 80 percent of the total grain production according to the Ministry of Plan’s statistics. 

     Rice, at the time of  French colonization, was grown on a small scale.  It was originally intended  to be a commercial cash crop, but now is a local subsistence crop. Rice is presently imported from neighboring countries. International donor funding efforts to organize, transform, improve and commercialize rice production have ceased.  The U.S. could be especially competitive in medium quality broken milled rice.  The principal competitors are Thailand, Brazil, Cameroon, and France.

 

     Corn is a less important crop in Chad. SODELAC (Societe de Developpement du Lac) has  developed  corn production in the Lake Chad region but, in general, little effort has been made to commercialize and extend corn production.    A potential market is open to U.S. corn exporters.

 

     Wheat and flour imports are liberal.  There are two local flour mills.  Wheat is purchased in bulk, bagged in Douala and transported to N’Djamena for milling. Local millers have a close working relationships with the French wheat industry. However there is local interest in U.S. grown wheat and flour imports.  U.S. suppliers should exploit this interest.  

 

 3.  Name of Sector: Livestock Raising, Tanning and Animal by-          products.

PS&D Commodity Heading: Cattle 0011000, Sheep 0012100, Meat- beef & veal 0111000, Meat-lamb & goat 0112000, Bovine hides & skins 2111000, by-products 4113200. 

 

     Data Table                  1996       1997      1998 E

 

     a)Total market size(Head)    2.7 MH     2.8       3.0   

     B)Total production           2.7        2.0       3.0

     c)Total Exports              450 KMT    482 KMT   500 KMT

     d)Total Imports              201 KMT    205 KMT   208 KMT

     e)Imports from the USA         0          0         0

       MH= Million Head, K MT= Thousand Metric Tons

 

     The above statistics are unofficial estimates. 

 

     Comments: Livestock raising is a major economical activity and  principle source of livelihood for perhaps a third of Chad's people.  It is impossible to know with certainty the value of cattle exports.  Chad’s cattle herds are exported  by traditional traders to markets in Nigeria and Cameroon.  Cattle exports "on the hoof" usually pass outside the control of Customs services, as a result these exports  are not officially counted or taxed. Roughly 30% of Chadian export earnings stem from livestock.  

     The size of Chad’s herds is difficult to determine, primarily due to the seasonal migrations. Conservative estimates from CEBVIRHA - UDEAC (Communaute Economique du Betail, de la Viande et des Ressources Halieutique)place the herd size as follows: 6.5 million head of cattle, 5 million sheep and goats, 700,000 camels, 20,000 pigs, 250,000 horses, 300,000 mules.  Others estimate the herd size much higher. The livestock sector annual growth rate in 1998 is  estimated at 2.7%.

 

     Possibilities exist for U.S. investors in animal husbandry, ranching, meat packing with an emphasis on the development of exportation of Chadian beef and other meat products to regional and world markets.  Further opportunities exist in tanning and in the development of animal by-products for export and local consumption.

 

 

 

 

 

 4.  Name of Sector: Powder Whole Milk

     PS&D Commodity Heading: Dairy, Dry Milk (0224400)

 

     Data Table                      1996      1997      1998 E

  

     a)Total market size          965 MT    970 MT    975 MT

     b)Total local production     186 KL    197 KL    280 KL  

     c)Total Exports                0         0         0     

     d)Total Imports              965 MT    970 MT    975 MT

     e)Imports from U.S.            0         0         0 

          MT= Metric Tons, KL= Thousand Liters/dairy products.

 

     The above statistics are non-official estimates.

 

     Comments: The powder whole milk market is dominated by a major Swiss trademark distributed from the Netherlands.  Several well known French dairy firms round out the balance of suppliers.  Both benefit from the European Union’s subsidies program.  The dairy product industry in Chad is not developed.  All UHT and concentrated milk, is imported and is expensive.  There is no local butter, ice cream or yogurt manufacturer.  Local diary products of cow’s and, goat’s whole milk and cheeses are sold by the informal sector, and are generally un-refrigerated, and unpasteurized. Consumer ready imported dairy products of cheese, UHT milk, yogurt and butter are predominately French.  There is no U.S. powder whole milk sold in Chad.

     

3.   SIGNIFICANT INVESTMENT OPPORTUNITIES

     ------------------------------------

     Privatization of Chadian government-owned enterprises continues as defined under the IMF's Enhanced Structural Adjustment Program. Companies in the public portfolio slated for privatization are namely: Hotel du Chari, the two banks, B.T.C.D. Banque Tchadienne de Credit et de Depot, and the B.D.T. Banque Tchadienne de Developpement Bank.  The Société Nationale d'Entretien Routier (SNER), Air Tchad, S.T.E.E. (Societe Tchadienne d'Eau et d'Electricte) the electric power and water company which has assets of USD 2.4 million and 11,000 subscribers for electric power, (9,000 in N'Djamena) and 16,000 subscribers for water (12,000 in N'Djamena) is under considerable attack due to KwH pricing, production and distribution problems. (see Section 1 of this Chapter (V) for further details).  The Societe Nationale Sucriere du Tchad (SONASUT) the national sugar company is to be privatized.  The Chadian telecommunication sector is organized under two different entities. The public enterprise, The (Office National des Postes et Télécommunication du Tchad (ONPT), the National Post and Telecommunication Company, manages local communications. The parastatal enterprise Telecommications International du Tchad (TIT), International Telecommunications of Chad handles all international communications.  The state withdrawal from the public sector calls for the break up of the ONPT/TIT and the creation of a new telephone company (SOTEL TCHAD). The telecommunication restructuring process is expected to begin during the forth quarter of 1998, and be completed before the end of 1999.  Cellular, Internet, mobile, paging, products, services and other telecom applications licenses will be awarded to private providers and operators.

 

     Chadian state owner enterprises are being restructured in response to years of financial shortfalls, cronyism, and poor management among other problems.  Therefore, prior to commitments, investors are encouraged to visit Chad in order to obtain firsthand knowledge of the country, and to work closely with a Chadian partner and local attorney.

 

     Investors are encouraged to contact the Chadian Government privatization office for further information.  The Ministry of Commerce and Industry (Ministere du Commerce et de l’Industrie), Commission Technique Chargee du Desengagement de l’Etat des Entreprises, Secretariat Permanent, B.P. 442, Tel: (235) 52-23-78, Fax: (235) 52-54-33   

 

THE GOVERNMENT OF THE UNITED STATES ACKNOWLEDGES THE CONTRIBUTION THAT OUTWARD FOREIGN DIRECT INVESTMENT (FDI) MAKES TO THE U.S. ECONOMY.  U.S. FOREIGN DIRECT INVESTMENT IS INCREASINGLY VIEWED AS A COMPLEMENT OR EVEN A NECESSARY COMPONENT OF TRADE. FOR EXAMPLE, ROUGHLY 60 PERCENT OF U.S. EXPORTS ARE SOLD BY AMERICAN FIRMS THAT HAVE OPERATIONS ABROAD. RECOGNIZING THE BENEFITS THAT U.S. OUTWARD INVESTMENT BRINGS TO THE U.S. ECONOMY, THE GOVERNMENT OF THE UNITED STATES UNDERTAKES INITIATIVES, SUCH AS OVERSEAS PRIVATE INVESTMENT CORPORATION(OPIC) PROGRAMS, BILATERAL INVESTMENT TREATY NEGOTIATIONS, AND BUSINESS FACILITATION PROGRAMS, THAT SUPPORT U.S. INVESTORS. 

 

INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND

U.S. DEPARTMENT OF STATE, 1998.  ALL RIGHTS RESERVED OUTSIDE OF

THE UNITED STATES

 

<NREC>Chad06 Chad: Trade Regulations & Standards <A>=Chad

 

 

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CHAPTER VI: TRADE REGULATIONS AND STANDARDS

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1.   TRADE BARRIERS, INCLUDING TARIFFS, NON-TARIFF BARRIERS AND

     ----------------------------------------------------------

     IMPORT TAXES:     

     -------------

Commercial barriers:  Barriers to U.S. exports and business investments include:

 

-Uncertain legal protection and lack of an independent judiciary.

-Limited progress and resistance towards privatization of parastatals which could open the way towards U.S. participation, i.e., CotonTchad, STEE, TIT, ONPT.

-Perceived U.S. thinking that Chad is a French and European "back yard" and that Europeans dominate the market due to French  legal, commercial and financial systems. 

-Unfamiliarity with business practices, country customs and general commercial knowledge.

-More costly freight rates and long transit times between Africa and the U.S.A.

-French historic and economic relationships with its former colonies greatly advantage French suppliers.

-Limited Chadian purchasing power.

    

     Tariffs, non-tariff barriers and import taxes:

 

     Chad's tariff structure is based on fiscal and custom duties. The fiscal duty is a 15 percent TCA "Taxe sur le Chiffre d'Affaire," an enterprise "turnover tax" which is principally an ad valorem or a Value Added Tax (VAT).

 

     Custom duties are imposed upon imported products.  These duties vary according to the origin and type of the imported product.  The duty schedules for products shipped within the UDEAC, "l'Union Douanière et Economique" is 10 percent.  The TPG (Tarif Preferrentiel Generalisé) is applied.  UDEAC is a political and economic organization, political because it permits the free circulation of individuals between the member states and economic because it fosters economic unity between members.  A treaty was signed in Brazzaville in 1964 between six member states: Chad, Congo, Cameroon, Gabon, and Central African Republic.  Equatorial Guinea became a member state in 1985.  The principles of this accord are clear, but in practice the rules disfavor Chad and some  other member states.  Cameroon has the distinct advantage due to its sub-regional commercial and industrial strength.

 

     Duties from outside UDEAC are based upon C.I.F. prices.   Shipping insurance must be covered by the importer for in-land travel between Douala and the Chadian border.  Insurance is obtained from a Chadian government parastatal company "STAR NATIONALE" in Chad or through its corresponding insurance agent in Paris, (Faugere and Jutheau. Duties vary depending on the product.  Essential products called "produits essentiels" are fixed at 5 percent  Other products of less essential nature vary between 10 percent to 30 percent.  There is a supplementary tax  (droit d'accise sur taxe) of 20 percent on luxury products, i.e., televisions, audio visual equipment, air conditioners, automobile radios, CD laser discs, washing machines. Automobiles carry an excise tax of 75-100 percent.

 

     A two (2) percent information or statistical tax,(taxe d'information) is applicable.

 

2.  CUSTOMS VALUATION

    -----------------

     Regulatory government agencies:      

     

 

     Taxation: Direction Generale des Impots, Ministere des             Finances et de l'Economie.

 

     Monetary Transaction:  Direction des Finances Exterior,       Ministere des Finances et de l'Economie.

 

Labor questions:  Ministere de la Fonction Publique. The (IPT) The Ministry of Civil Service. This Ministry handles labor inspection. L'Office Nationale pour la Promotion de la L'Emploie (ONPE) This office handles employment questions.

 

Intellectual Property Right: Ministere des Finance et de l'Economie. The (OAPT) African Organization Of Intellectual Property.office is located in this Ministry (See Chapter 4 section 12).

 

3.  IMPORT LICENSES        

     ---------------

     Quotas:  There are no quota regulations for Chad.

     Import licenses: Import licenses are no longer required.

 

4.  EXPORT CONTROLS

     ---------------

     Authorization for exports is issued through the Ministry of Commerce, Industry and Artisans. (Ministere du Commerce, de l'Industrie et de l'Artisanat). Directeur du Commerce, B.P. 458, Tel: (235) 52-21-53, Fax: (235) 52-27-33 - Directeur de l'Industrie PME/PMI B.P. 424, Tel: (235) 52-27-33, Fax: (235) 52-27-33)

 

5.  IMPORT/EXPORT DOCUMENTATION

     ---------------------------

     Documents for goods shipped to Chad include:

 

     Commercial Invoice:  Four commercial invoice copies, preferably in French or other languages with the French translation and description of the goods.  All invoices must contain the names of the exporter, consignee, the product name, the unit and total, and quantity.  The unit and total quantity in CIF value, gross and net weights and the terms of the sale.

 

     Certificate of Origin:  Two copies, preferably in French or other language with the French translation (i.e., Shoe/Chaussure) The certificate of origin must be issued by an official Chamber of Commerce in the country of the products origin.

 

     Packing list:   packing lists with the number and quantity per carton and in numeric series.  This is not required; however, if the packing list is absent from shipping documents, customs clearance will be slowed.

 

     Bill of lading/airway bill:  (B/L and AWB)  shipping documents should include the name and address of the consignee/importer of the goods.  Identification numbers on bills of lading, airway bills and invoices must be exact.

 

     Export documentation:

 

     Exports (ex-Chad) : A license for export of certain articles is required. A certificate of origin is issued for the exported product by the Chamber of Commerce and Industry, Agriculture, Mines and Artisans (CCIAMA) B.P. 458, N'Djamena,Tel: (235) 52-52-64.  The Ministry of Finance and  Economy (Ministère de Finance et de l'Economie, B.P. 144, N'Djamena, Chad, Tel: (235) 52-34-87, provides the export license.  Certain products such as domestic animal hides, gum arabic require an export license.  The export license tariff range is variable.

 

6.   TEMPORARY ENTRY:

     ---------------

     The Ministry of Industrial, Commercial Development and Artisans requires Form D18 (Admission Temporaire) for temporary entry which is issued for one year. There is a possible extension of an additional year.  There is also a provision allowing for the temporary importation of heavy equipment.  Duties and taxes are suspended during the time these materials are in use.  The equipment must be exported at project completion. 

 

7.  LABELING, MARKING REQUIREMENTS

     ------------------------------

     For the moment there is no specific requirement concerning "Made in" markings.  

 

     Computer hardware and software, televisions, high-tech equipment and appliances made in the United States should have instruction manuals and guarantees in French and/or Arabic since eventual users may not be able to read English.

 

     The regulations do not require any particular language markings on imported or local food products.  Production and expiration dates are controlled.  Nevertheless, a small amount of smuggled products are in circulation without expiration dates. 

 

8.  PROHIBITED IMPORTS

     ------------------

     There are several products ineligible for import or subject to import restrictions. They include:(1) live animals (which require all vaccinations with international or national vaccination card); (2) arms and munitions. (3) pornography; (4) narcotics; (5) illicit drugs and explosives.

 

9.  STANDARDS

     ---------

     The metric system is used for weights and measures. The electricity is 220 volts, 50 cycles.

 

10. FREE TRADE ZONES/WAREHOUSES

     ---------------------------

     Chad operates a transit warehouse facility in Douala for goods being shipped to Chad.  Warehouse facilities are available in Douala and N'Djamena.  Bonded warehousing was abolished on Chadian territory on January 1, 1998. The port of Douala collects demurrage after 11 days. 

 

11.  SPECIAL IMPORT PROVISIONS

     -------------------------

     Other than those import regulations already mentioned in other parts of this sections, there are no specific provisions governing imports of services and goods to Chad.

 

12.  MEMBERSHIP IN FREE TRADE ARRANGEMENTS

     -------------------------------------

     Chad is a member of the UDEAC (Union Douaniere et Economique de l'Afrique Centrale.)  See Chapter VI, Section 1.

 

INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND

U.S. DEPARTMENT OF STATE, 1998.  ALL RIGHTS RESERVED OUTSIDE OF

THE UNITED STATES

 

<NREC>Chad07 Chad: Investment Climate <A>=Chad

 

 

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CHAPTER VII:  1998 INVESTMENT CLIMATE STATEMENT FOR CHAD

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A.1.   OPENNESS TO FOREIGN INVESTMENT

       ------------------------------

A.1.1 General government attitude toward foreign direct investment:

 

   The government of Chad actively seeks foreign direct investment as a means of promoting growth and transforming its economy.  In 1998 the GOC welcomed a number of U.S. companies to Chad and invited them to investigate trade and investment opportunities.  The government is also receptive to foreign firms interest in acquiring ownership of parastatals slated for privatization.

 

    Chad still has one of the world's lowest per‑capita incomes,  about USD 229.  Since independence in 1960, war, drought and famine severely damaged the country's institutions, infrastructure and chances for outside investment.  However, Chad is currently exhibiting signs of political stability, social reform and economic recovery.  Though still facing daunting challenges, overall indicators, especially those in the petroleum sector, signal an improved investment potential.

 

     The main obstacles to investments are the small scale of the economy, limited purchasing power, low rates of capital accumulation and the fact that probably two thirds of GDP is generated through the informal sector, which is largely outside the control of the government.  Also, Chad is landlocked and has high transportation costs.  Government bureaucracy can be slow and inefficient.

 

 

      Petroleum is the most promising sector for investment. Esso Chad, a consortium led by Exxon and including shell and elf, has found commercially exploitable crude oil reserves in southern Chad.  Esso Chad has concluded an agreement with the government of Chad and is negotiating with the government of Cameroon for construction of a pipeline through Cameroon to the coast.  Solicitation of contract tenders began in 1996, and there is active international interest in submitting bids.  Current projections call for first production to begin around the beginning of the next decade.

 

     There are significant potential opportunities for U.S. companies in finance, construction and oil‑related industries.  Esso Chad is also involved in development of a smaller oil field north of Lake Chad.  Plans under consideration include a pipeline to N'Djamena, a mini‑refinery, a generating plant and a national power grid.  Chad's mineral reserves, especially gold, but also marble and natron, may be of interest to U.S. investors.  The government is actively seeking ways to develop the country's mineral resources.

 

     High‑grade cotton is Chad's major export and continues to hold commercial promise.  The parastatal Cotontchad uses American cotton gins and has contracted for American fertilizer.  U.S. sales to Cotontchad are constrained, however, by past operating deficits and a strong French financial interest in the company, which effectively keeps much purchasing activity restricted.

 

     Livestock remains an under‑exploited sector of the economy, and could provide interested U.S. firms with opportunities in meat and dairy production, leather, glue, fertilizer and other products.  An abundance of open and fertile agricultural land in southern Chad presents potential for agricultural production.  Export taxes were largely eliminated as part of a 1995 tax reform, giving added incentive to commercial agricultural production.

 

     Gum arabic is a fast‑growing export of potential interest to U.S. trading firms.  Chad is the second largest world supplier (after Sudan), and exporters are currently exploring non‑traditional markets in the U.S., Japan and the middle east, in addition to continuing sales to France.

 

     Spirulina (blue‑green algae) is abundant in Lake Chad and is virtually unexploited.  The same is true of the oil‑producing shea tree and sesame seed/oil.  Renewable energy sources, such as solar and wind power may offer opportunities, as energy costs throughout the country are extremely high.  Tourism is also a sector which one day could offer promise as there are several important game reserves and scenic sites in Chad.

 

     Commercial possibilities in the industrial sector are very limited.  Aside from Cotontchad, the only significant industrial enterprises in Chad are a sugar refinery, a brewery, a soft drink bottler, a cigarette manufacturer and a small bicycle assembly plant.  The World Bank has targeted several government‑owned and parastatal firms for privatization. Chad offers a modest but developing market for telecommunications equipment and services.  The state‑owned telephone company lacks modern equipment and accounting procedures, and company officials have expressed interest in establishing contacts with U.S. telecommunications firms.

 

     Under the 1987 investment code and its amendments, industrial investments enjoy certain tax and customs exonerations.  No major changes are foreseen in the immediate future.  However, the new parliament is contemplating some revisions and updated measures to the investment code.

 

     Chad's relations with the U.S. are good.  Although the USAID office in N'Djamena closed in 1995 and Peace Corps suspended its operations in 1998, the U.S. continues modest assistance through democratization and humanitarian programs.

 

     The government was granted a third year enhanced structural adjustment facility loan by the International Monetary Fund in April, 1998. The business languages in Chad are French and Arabic, but English is increasingly being used in commercial transactions.

 

A.1.2  Major laws/rules affecting incoming foreign investment:  there are few legal bars to foreign enterprise or trade.  However, some institutional and political impediments currently serve to discourage large‑scale commitments by foreign or domestic firms.  The investment code, currently under revision, permits 100 percent foreign ownership of firms, except in national security or strategic industries.

 

A.1.3 Overall economic or industrial strategy that has discriminatory effects on foreign‑owned investors: To the extent that they exist, Chad's economic and industrial strategies do not discriminate. However, foreign (mainly French) firms may be better positioned to compete, simply because they are in place and have greater influence.  Chadian business people and government officials appreciate the position of the U.S. in international

 

affairs and welcome U.S. commercial ventures, products and know how. 

 

A.1.4 Screening (i.e., host‑government selection) of foreign investment, including general or specific circumstances and criteria: The host country's position regarding screening is clearly stated under the "regime de droit commun" or common rights portion of the investment code, which guarantees equal treatment to all foreign investors.

 

A.1.5 Screening mechanisms (either routine or non‑discriminatory) which serve as an impediment to investment, limit competition, or protect domestic interests: Interests are protected in cases of national security and for certain strategic industries. Examples are: the power and water company STEE (Societe Tchadienne d'Electricite et d'Eau) and Chadian television and radio stations.

A.1.6 Sectors closed/screened to foreign direct investment (fdi):  some industries related to defense are called strategic and may have restrictions attached to them.  These generally involve weapons, ammunition and private security forces. 

 

A.1.7 Major sectors/matters in which foreign investors are denied national treatment (i.e., treated the same as domestic firms) or MFN treatment (i.e. treated the same as the most favored foreign investor): In general, foreign investors are treated the same as nationals in all sectors of the economy.

 

A.1.8 Regarding ongoing privatization programs, how are foreign investors treated in those programs?  At what stage are foreign investors allowed to participate in countries' privatization programs?  Several para‑public enterprises are slated for privatization.  The GOC has encouraged foreign companies to participate in the process.  As a practical matter, certain third country national companies have an upper hand in this area owing to their historic presence and influence in the relevant government ministries.

 

A.1.9 Is there discrimination against foreign investors at the time of the initial investment or after the investment is made, such as through special tax and treatment, access to licenses, approvals, procurement, etc.?  There is no such official discrimination in either case.

 

A.2.    CONVERSION AND TRANSFER POLICIES.

        --------------------------------  

A.2.1 Are there any restrictions on converting or transferring funds associated with an investment (including remittances of investment capital, earnings, loan repayments, lease payments) into a freely usable currency and at a legal market clearing rate?  No, Chad's currency is the CFA franc, a regional currency supported by France at a fixed value.  There are no restrictions on transfer of funds into or out of Chad.  As a member of the Central African Regional Customs Union (UDEAC) and the regional monetary union (CEMAC). Chad has also implemented reforms in import and value‑added taxes to conform with these bodies' regulations.

 

A.2.2 Have there been any recent changes or are there plans to change remittance policies which have tightened or relaxed availability to foreign exchange for investment remittances?  No changes are foreseen in the immediate future, however, the new parliament is contemplating a revision of the investment code. The current system of exchange is free of restrictions on payments and transfers.  Investment capital and returns can be transferred to and from Chad through French banks.  Chad is a member of central Africa's CFA (Communaute Financiere Africaine) zone ("franc zone"), and the central African monetary union (CEMAC).

 

A.2.3 Is there difficulty in obtaining foreign exchange?  For commercial transactions within the banking system, the CFA Franc appears to be freely convertible into French Francs (fixed at    CFA F 100 to one French Franc).  There are no restrictions on foreign exchange and the international investment community has not complained of difficulties in the transfer of funds.

 

A.2.4 What is the average delay period currently in effect for remitting investment returns such as dividends, return of capital, interest and principal on private foreign debt, lease payments, royalties and management fees through normal, legal channels?  If delays over sixty days are common, what are the reasons for such delays?  There appears to be no unusual delays regarding investments, dividends, or returns on capital.

 

A.2.5 Can investors remit through a legal parallel market such as one utilizing convertible negotiable instruments (i.e. U.S. Dollar‑denominated host government bonds issued in lieu of immediate payments in U.S. Dollars)?  Is there a limitation on the inflow or outflow of funds for remittances of profits, debt service, capital, capital gains, returns on intellectual property, imported inputs, etc.?  There are no limits, however each operation is limited to 500,000 CFA F (equals to USD 1,000) without government approval.  Any amount over USD 1,000 requires approval from the Ministry of Finance.

 

A.2.6 In obtaining this information, is it important to go beyond official bank and government sources to the actual experience of American or other foreign investors, since there may be discrepancies between the stated policy and its implementation?  Yes, in general, accurate information is sometimes difficult to obtain and sometimes varies from actual experience.

 

A.3.  EXPROPRIATION AND COMPENSATION.

      ------------------------------

A.3.1 For what reasons does the government expropriate property?  During Chad's prolonged civil war, the government expropriated property without proper compensation; however, no expropriations have taken place in recent years. 

 

A.3.2 Does the government offer compensation at the time of expropriation?  The investment code indicates that property can be confiscated after five years if the property is not used or developed.  This clause has not been uniformly applied because of lack of control by the government agencies concerned.  In general, companies are not affected by this measure.  There is an anticipated modification to the investment code of 1987 which should eliminate the expropriation clause.  The investment code review for 1998 will address this question.

 

A.3.3 How have investors viewed the amount of offered compensation?  In general, investors have not been affected by expropriation or compensation measures.  During a period of civil unrest (1966‑1975) some land was expropriated under a decree called "cause ‑ utilisation publique".

 

A.3.4 Are claimants thwarted in their efforts to have claims heard?  In some instances they have been thwarted.  The court system is overloaded, poorly administered and sometimes influenced by the government.  It would be difficult to bring a claim against the government, for example.

 

A.3.5 Have there been any expropriatory actions in the recent past or policy shifts which would lead one to believe there may be expropriatory actions in the near future?  No such actions seem likely.

 

A.3.6 Are there any tendencies of the host government to discriminate against U.S. investments, companies or representatives in expropriation?  No, the Chadian government realizes the importance of foreign, including U.S. investment.

 

A.3.7 Are there certain sectors  (E.g., mining, banking, large land holdings) that are more at risk for expropriatory or similar actions?  No, expropriation is not perceived as a threat to potential investors and all sectors are attracting investors.

 

A.3.8 Are there laws that force local ownership?  Not at the moment, but this could possibly change at a future date.

 

A.3.9 Are there instances of "creeping expropriation" or governmental action tantamount to expropriation, such as confiscatory tax regimes, that might warrant special investigation (particularly by OPIC prior to offering coverage).  No, the government does not want to expropriate and it has not taken  any visible actions tantamount to expropriation.

 

A.4.      DISPUTE SETTLEMENT

          ------------------

A.4.1 Government's record of handling investment disputes:  Chad has a court system capable of respecting and protecting property and commercial rights, but there have been few such cases.

 

A.4.2 Have there been investment disputes over the past few years involving U.S. or other foreign investors or contractors in the host country?  There have been no recent major disputes involving U.S. or other foreign investors in Chad.

 

A.4.3 Do these disputes reflect a pattern?  No.

 

A.4.4 Description of the country's legal system: It is based on a mixture of the French civil law system and Chadian customary law.  In theory, Chad has an independent court system which respects and protects property and commercial rights.  In practice, the country

lacks administrative capacity, including resources for the justice system.

 

A.4.5 Are there effective means for enforcing property and contractual rights?  Yes, in the courts; but it can be a somewhat lengthy process.  

 

A.4.6  Is there government interference in the court system?  Yes, there is government interference in the court system.  Chad's justice system is an institution under government control.  The careers of magistrates, judges, clerks, and other judicial agents of the state depend on the political will of the executive branch of the government.  The judicial system is therefore not fully independent in exercising its legal function.  The nomination of the magistrates to high judicial office, (most of whom are appointed by decree of the council of ministers) subjugates further the judicial branch to the executive branch and to presidential power.  Despite supposed constitutional guarantees (article 146 of the constitution of march 31, 1966), some observers believe that the term "judicial authority" should be used instead of the term "judicial powers", in describing the system.

A.4.7 If an investment agreement is drafted, is it subject to foreign legal jurisdiction (e.g. subject to the commercial laws of the U.S.)?  Is this accepted by the local courts?   Each party is free, at the moment of their commitment, to designate in the agreement(s) the awareness that differences and conflicts may arise between the two.  The accepted principle is that jurisdiction belongs in the country where the agreement was drafted.  On the other hand, each country can also freely engage the jurisdiction of another represented country.  It is important to note that for commercial matters the litigious procedures are usually handled through arbitration.  In the case of a dispute, countries agree to designate one common arbitrator, or both parties appoint their own arbitrators.  It is possible that a contract investment agreement signed in Chad, can be subject to U.S. commercial law, if the parties have so decided,  provided that the agreement does not violate either the principles of law or if it is contrary to national public order.

 

A.4.8  Are judgments of foreign courts accepted and enforced by the local courts?  Judicial cooperation exists between Chad and certain nations. In September 1961, Chad participated with eleven other former french colonial countries (Cameroon, Central African Republic, Congo/Brazzaville, Cote d'Ivoire, Benin, Gabon,

Burkina‑Faso, Madagascar, Mauritania, Niger, and Senegal) to work out a collective judicial agreement, called the "Convention de Tananarive/ Antananarivo (Madagascar), signed on December 7, 1970.  Chad has since made similar collective agreements with France, Nigeria, and Sudan, which are based on the principles of the Tananarive Convention and which cover areas such as the discharge of judicial decisions and the forwarding and the serving of legal documents.  Chad appears to treat legal commercial matters with other countries on a case‑by‑case basis.

 

A.4.9 Does the country have a written and consistently applied commercial law?  Chadian written law allows for arbitration between legally recognized businesses and other commercial entities. It is not always applied consistently.

 

A.4.10 Does the country have a written and consistently applied bankruptcy law?  If so, what rights do creditors have under bankruptcy law?  Chad tends to apply essentially French commercial laws as promulgated prior to November 1958.  However, in 1995 Chad also signed a convention prepared by the "Organisation pour l'Harmonisation des Droits des Affaires en Afrique" (OHADA), a body specifically created to harmonize legal affairs in Africa and to address such issues.  The convention spells out rights for those designated as approved creditors in various categories (i.e., the treasury, wage earners, etc.)

 

A.4.11 Are monetary judgments usually made in the investor's currency or local currency?  Decisions rendered on commercial matters usually specify the amount of damages, or other losses to the winning party to be paid in local currency (i.e. CFA francs).

 

A.4.12 Does the government accept binding international arbitration of investment disputes between foreign investors and the state?  In general, yes. In most major contracts, the parties will have spelled out the conditions for arbitration in advance.

 

A.4.13 Is host country a member of or does it plan to become a member of the International Center for the Settlement of Investment Disputes (ICSID, also known as the Washington Convention) and/or the New York Convention of 1958 on the recognition and enforcement of foreign arbitral awards?  Chad adheres to ICSID.  According to a 1985 list, Chad is among the 87 member states which have ratified the convention.  Chad is presently examining ratification of the June 10, 1965, convention relating to the recognition and enforcement of foreign arbitration decisions.

 

A.5.    PERFORMANCE REQUIREMENTS/INCENTIVES.   

        -----------------------------------

A.5.1 Description of investment incentives (i.e., grants, tax deferrals, special access to credit import quota exceptions, etc.) Available to foreign investors and whether any favored treatment is given to foreign investors; indicate to what extent incentives are specified in law or regulation or made available in an ad hoc manner. Identify any performance requirements linked to incentives:  the various incentives are spelled out in the investment code, which is currently under revision.

 

A.5.2 Are performance requirements imposed as a condition for establishing, maintaining or expanding the investment, or for access to tax and investment incentives?  No, incentives tend to increase with the size of investment and the impact the activity is likely to have in creating jobs.  Enterprises starting up in a designated industrial area often benefit in ways such as personal income tax exoneration and low corporate taxes. Other incentives might be low license fees and rent. Benefits such as tax holidays can last from five to ten years.

A.5.3 Is there a requirement that investors purchase from local sources or export a certain percentage of output, or only have access to foreign exchange in relation to their exports?  There is none.

 

A.5.4 In the case of foreign investments, is there a requirement that nationals own shares, that the share of foreign equity be reduced over time, or that technology be transferred on certain terms?   There is no official policy on this.

 

A.5.5 Are there government-imposed conditions on permission to invest, including location in specific geographical areas, specific percentage of local content (goods and services) or local equity, substitution for imports, export requirements or targets, employment of host country nationals, technology transfer, the local source of financing, etc.?   There are no such requirements.  However, the government encourages new industries ‑ particularly light manufacturing ‑ to be located in designated industrial zones.

 

A.5.6 Description of any enforcement procedures for performance requirements, including available information on host country's stated intentions to maintain, increase or decrease requirements; are investors required to disclose proprietary information to governments as part of the regulatory approval process?  No, not applicable to Chad.

 

A.5.7 Are U.S. and other foreign firms able to participate in government financed and/or subsidized research and development programs on a national treatment basis?  If not, what are the restrictions?  Any differences between de jure and de facto practice?  Foreign firms are able to participate in research and development programs, but in practice the government lacks funds for such programs.  As a result, most research programs are funded instead by foreign donors through international development banks, bilateral agreements or direct grants.

 

A.5.8 Are there any discriminatory or excessively onerous visa, residence, or work permit requirements inhibiting foreign investors?  Are any restrictions placed on the numbers and duration of employment of foreign managers brought in to supervise foreign investment projects?  No, visa requirements are about the same as those of other countries in the region.

 

A.5.9 Are there discriminatory or preferential export policies and import policies affecting foreign investors, including tariff barriers, non‑tariff barriers and other measures such as import price controls: the answers lie in the details of the tariff

System, which has recently been streamlined and simplified ‑ a result of Chad's participation in a structural adjustment program and its membership in UDEAC, the regional customs union.

 

A.6.   RIGHTS TO PRIVATE OWNERSHIP AND ESTABLISHMENT.

       ---------------------------------------------

A.6.1 Is there a right of foreign and domestic private entities to establish and own business enterprises and engage in all forms of remunerative activity?  Yes, by law and in practice, foreign and domestic private entities have the right to establish, own businesses and to engage in legal forms of profit‑making activity.

 

A.6.2 Is there a right of private entities to freely establish, acquire, and dispose of interests in business enterprises?  Yes, this right exists.

 

A.6.3 Is competitive equality the standard applied to Private enterprises in competition with public enterprises with respect to access to markets, credit, and other business operations, such as licenses and supplies?  Officially this is the case, though in practice corruption and/or inefficiency could interfere with the standard.

 

A.7.   PROTECTION OF PROPERTY RIGHTS.

       ----------------------------- 

A.7.1 Are secured interests in property, both chattel and real, recognized and enforced?   By law, yes.  

 

A.7.2 Does the concept of a mortgage exist?  Yes, though they are not extensively used.  

 

A.7.3 Is there a recognized and reliable system of recording such security interests?  An office called "Direction de Domain" is responsible for recording mortgages. It is under the Ministry of Finance and ,Economy. Tel: (235) 52‑21‑71.

 

A.7.4 Is there a functioning, non‑discriminatory legal system accessible to foreign investors that protects and facilitates acquisition and disposition of all property rights, such as land, buildings, and mortgages?  Yes, the investment code indicates protection for investors and legal assistance is available.

A.7.5 Is there adherence to key international agreements on intellectual property rights?  Yes, Chad is a member of Cameroon- based OAPI (The West African Intellectual Property Rights Organization) and adheres to its rules within the limits of its administrative capacity.

 

A.7.6 Is there adequate protection for: intellectual property, patents, copyrights, trademarks, trade secrets, semiconductor chip layout design? Yes, within the constraints of the government's capacity to do so.

 

A.7.7 Have adequate steps been taken to implement the WTO trips agreement?  No clear answer is currently available. The GOC Ministry of Commerce and Industry say they are interested in this issue.

 

A.8.   TRANSPARENCY OF THE REGULATORY SYSTEM.

       -------------------------------------

A.8.1 Does the government use transparent policies and effective laws to foster competition and establish "clear rules of the game"?  No, at least not consistently.  Many deals are entered into because of personal connections.  However, the Chadian government is working with the World Bank and other multilateral lending institutions and donors to foster a more transparent and competitive system.

 

A.8.2 Do tax, labor, health and safety, and other laws and policies distort or impede investment?   No, the current version of the investment code spells out the fiscal, labor, health and social security responsibilities required of investors.

 

A.8.3 Are bureaucratic procedures sufficiently streamlined and transparent?  No, but efforts are being made to simplify the tax laws and procedures. As an example: the updated mining code of 1995 does not offer any additional incentives beyond those provided for in the investment code, however, special "dispensation" can be applied for in some circumstances.

 

A.8.4 Is unnecessary red tape a problem?  Yes, it can be a problem.  While government policies themselves do not hinder approval, bureaucratic procedures are often cumbersome or slow.

 

A.9.   EFFICIENT CAPITAL MARKETS AND PORTFOLIO INVESTMENT.

       --------------------------------------------------

A.9.1 Do policies facilitate the free flow of financial resources, to support the flow of resources in the product and factor markets?  While the government's financial policies do not prevent the free flow of capital, the small size of the banking sector can be an impediment. Only the most established businesses can obtain bank credit and its cost is high.

 

A.9.2 Is credit allocated on market terms?  Yes, credit distribution is available from the commercial banking system on market terms, which is expensive: 16 pct to 22 pct for short term loans.  Medium term loans are also available, but difficult to obtain.

 

A.9.3  Are foreign investors able to get credit on the local market?  Yes, but credit allotments are limited in range and lending criteria is rigid.

 

A.9.4  Does the private sector have access to a variety of credit instruments?  It benefits from only a limited array of financial instruments, such as letters of credit, short and medium term loans, foreign exchange operations, etc.

 

A.9.5  Are legal, regulatory, and accounting systems transparent and consistent with international norms?  Increasingly so, as a

 

number of internationally renowned accounting firms have established themselves in Chad.

 

A.9.6 Is there an effective regulatory system established to encourage and facilitate portfolio investment?  No effective system is in place.

 

A.9.7  What are the estimated total assets of the country's largest banks?  Estimated assets of the five largest banks are USD 11,850,000.

 

A.9.8 Is the banking system sound?  Yes, it appears to be sound. There are five banks in Chad.  None are U.S. banks.  The are:

Banque de Developpement Tchadienne (BDT), Banque Tchadienne de Credits et de Depots (BTCD), Banque Meridien BIAO Tchad (BMBT), Financial Bank Tchad, Banque Commercial du Chari (BCC), Banque Agricole du Soudan au Tchad (BAST).

 

A.9.9 Are there "cross‑shareholding" and "stable shareholder" arrangements used by private firms to restrict foreign investment through mergers and acquisitions?  Perhaps both methods are used for protection and avoidance of competition within the same

industrial or service sector.  This could be the case with several French‑controlled Chadian parastatals such as Sonasut (sugar), STEE (electricity and water) CotonTchad (textiles)and TIT (telecoms).

 

A.9.10  With respect to private firms' defenses to prevent hostile takeovers, are such measures typically designed to protect against all potential hostile takeovers or primarily foreign hostile takeovers?  If the measures can be used against all hostile takeovers, are the measures in fact employed most commonly to prevent hostile takeovers by foreign investors?  Not applicable.  In Chad's present economic condition, hostile takeovers are difficult to envision.  The number of companies (usually one of a kind per sector), are often parastatal or wholly owned by the government.

 

A.9.11 Are there laws or regulations specifically authorizing private firms to adopt articles of incorporation or association which limit or prohibit foreign investment, participation, or control?  No, but this does not preclude eventual adoption of regulations of this kind in the future.

 

A.9.12 Are there private sector and/or government efforts to restrict foreign participation in industry standards‑setting consortia or organizations?  No, not under the present conditions.

 

A.9.13  Are there any other practices by private firms to restrict foreign investment, participation, or control in/of domestic enterprises?  Chad still relies on a system of parastatals. The TIT, for example is a French‑controlled parastatal organization operating in conjunction with ONPT (the post office), which defends French interests in telecommunications.  As a result, American companies would be hard pressed to enter the telecommunications market here.  STEE (electricity and water), Sonasut (sugar), Cotontchad (cotton), are other examples of French controlled and directed para‑public enterprises in which it would be difficult for American firms to compete at this time.

  

A.10     POLITICAL VIOLENCE.

         ------------------

A.10.1  Have there been incidents over the past few years involving politically‑motivated damage to projects and/or installations?  No.

A.10.2  Is the environment in the host country growing increasingly politicized such that civil disturbances could be more likely?  No, in fact the trend is in the opposite direction.  Since elections (1996‑7) there have been signs of greater stability and consensus.  The current government has been in power since 1990.  In 1996 the nation adopted a constitution and held multiparty presidential elections.  In 1997 Chadians went to the polls to elect a new parliament.  Local elections are expected for late 1998.

 

A.10.3  Are there any nascent insurrections, belligerent neighbors or other politically‑motivated activities?  While most armed opposition groups have reconciled with the government, there are still occasional confrontations on the border areas between troops and rebels.

 

A.11.    CORRUPTION.

         ----------

A.11.1  Does the host country have laws, regulations, and penalties to combat corruption effectively?  The laws do exist, but corruption remains a problem.

 

A.11.2 Is the country a signatory to the OECD convention on  combating bribery? It is not a signatory.

 

A.11.3 Have U.S. firms identified corruption as an obstacle to foreign direct investment?   No, but U.S. investments have been minimal until this point.

 

A.11.4 In what areas or sectors is corruption most pervasive:  government procurement, transfers, performance requirements, dispute settlement, regulatory system, etc?  It is widely assumed that corruption of some form exists at all levels of the government.  However, legal tender offerings financed by multilateral organizations and donors stipulate that prior to loans, all offers are controlled and decided upon by the Ministry of Finance and the Economy.  Performance requirements, transfers, dispute settlements and regulations are not imposed as a condition for establishing, maintaining or expanding foreign direct investments.

 

A.11.5  What is the host country doing to combat corruption?  The president has often spoken out against it in the media.  There are also some indications that the government is making headway in the fight against corruption, since a number of arrests in this connection have been made. 

 

A.11.6 Is giving or accepting a bribe a criminal act? Theoretically, yes.  A bribe is a criminal act.  Bribes are sometimes found in legal tenders/offerings, i.e., as additional commissions in services.

 

A.11.7  If so, what are the penalties?  Penalties for bribery are handed out in criminal, not civil court.

 

A.11.8  Is bribing a foreign official a criminal act? Yes, offenses can fall under national security laws titled "intelligence with the enemy" which deem bribery of an official as an illegal and punishable act.

 

A.11.9  Can a bribe to a foreign official be deducted from taxes?  No, it is not allowed.

 

A.11.10 Who is responsible for combating corruption?  The presidency and ministries of interior and finance.

 

A.11.11  Has anyone been found guilty of corruption, as either an investor or as an official?  Yes, a number of individuals have been convicted on corruption charges.

 

B.   BILATERAL INVESTMENT AGREEMENTS.

     -------------------------------

B.1   List of countries which have bilateral investment protection agreements (as opposed to investment insurance agreements such as (OPIC) or treaties with host country or other treaties on investments.  There are no known such agreements or treaties between Chad and other countries. Some regional commercial support is available to American businesses by the U.S. Commercial Service or the U.S. Chamber of Commerce in Abidjan, Cote d'Ivoire.  Other nations such as France maintain regional commercial offices in the area.  There is no Franco‑Chadian chamber of commerce in N'Djamena.  Franco‑Chadian commercial projects are supported and sometimes subsidized by the "commune" section or by the French Embassy in Yaounde, Cameroon (called "poste d'expansion economique" or commercial office).  French commercial agents in Chad represent various French business interests.  Other nations such as Taiwan, Libya, Saudi Arabia have missions in Chad.  The American Embassy in N'Djamena has a small commercial office which can provide limited assistance to U.S. businesses.

 

B.2  Does Chad have BIT or BTT with the U.S.?  There are no treaties of this kind with the U.S.

  

C.   OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS.

     --------------------------------------------

C.1 Description of status and potential for operation of the U.S. Overseas Private Investment Corporation's (OPIC) programs in host country: there are no OPIC projects in Chad.

 

C.2 Is host country a member of or planning to become a member of the multilateral investment guarantee agency (MIGA)?  Chad is not a member, but will attend this year's meeting to possibly sign/join.

 

C.3 In the event OPIC should pay an inconvertibility claim, the local currency accepted by OPIC would be made available, pursuant to the bilateral agreement providing for the OPIC program, to the embassy on a priority basis for USG expenses.  What is the estimated annual U.S. dollar value of local currency likely to be used by the embassy and/or other U.S. institutions in the host country?  OPIC has no projects in Chad  Annual dollar value of local currency used by the U.S. mission is estimated at USD 3 million.

 

C.4 At what exchange rate (e.g., official, financial, legal parallel in‑country or parallel market in a third country) does embassy purchase local currency?  The current exchange rate is about CFA F 600 to the dollar.  However, it fluctuates with the exchange rate of the French Franc. 

 

C.5 What is the likely risk over the next year for devaluation or depreciation of that rate?  The risk is low for the moment, but  France joining Europe's common "Euro" currency is factor which is bound to affect the French Franc and therefore the CFA F, also. 

 

D.     LABOR.

       -----

D.1 Description of labor availability and any shortages of special labor skills.  Also, description of general labor‑management relations, host government adherence to ILO Conventions protecting worker rights, and effect of labor factors on choice of technology: about 80 percent of the labor force is engaged in unpaid subsistence activities such as fishing, farming and herding. There are shortages of skilled labor of all types.  Labor unions exist; the main one is the UST. Unions operate independently from the government.

 

E.   FOREIGN TRADE ZONES/FREE PORTS.

     ------------------------------

     Describe laws and effective policies for areas designated as duty-free import zones and whether foreign-owned firms have same investment opportunities as host country entities. There are no duty free zones of any consequence at the present time.

 

F.   FOREIGN DIRECT INVESTMENT ACTIVITIES AND STATISTICS.

     ---------------------------------------------------

D.1.1  Analysis of investment trends and the impact of policies and the economic conditions on foreign direct investment using comprehensive data available:  there has been relatively little foreign investment in Chad and reliable statistics on the subject are hard to come by.  However, oil exploration/development is currently the most important foreign investment.  After thirty years of discussion, interrupted by war and civil upheaval, Chad and an oil consortium composed of Esso/Chad (Exxon), Shell and Elf signed in late 1996 an agreement to develop the oil deposits in the south of the country.  Aside from the oil industry, Chad is served by U.S. manufacturers of heavy equipment. The major portion of construction equipment, materials, parts, telecommunication gear and technology come from France.  Available statistics from the Ministry of Plan’s  statistics section (called the "DSEED") show France as the country's number one trading partner.  Chad also trades with other EC‑member countries such as Belgium, Germany, Italy, and Holland.  UDEAC countries are also major partners, especially Cameroon, Congo/Brazzaville, and the Central African Republic (which provides foodstuffs to Chad).  Taiwan, Japan, Korea, and south‑east Asian countries have found niches in the local market for food and inexpensively manufactured consumer products.  China before departing contributed to major construction projects including a hospital and the national assembly building.  Korean firms are interested in several mining possibilities and the proposed Sedigi/N’Djamena mini oil refinery (SEERAT), power plant, and pipe‑line project.  Indonesia is also interested in this project. Libyan interest in various proposed infrastructure projects is becoming more pronounced.  Gulf countries are reportedly investing in construction projects, a large food market and shopping center.

 

     Some of the major projects/investments for 1993‑1998 by international donors and lenders for Chad are outlined below:

 

Ministry of Public Works and Transport

--------------------------------------

Highway construction: Guelendeng‑Bongor‑Ere, USD 42 million (Germany).

 

Road improvements: USD 18 million (European Union).

 

Road improvements: Massaguet-Ngoura, USD 5.8 (Islamic Development Bank).

 

Road paving: Djermaya‑Massaguet, USD 1.2 million (African Development Bank)

 

Road paving: Ere‑Kelo, USD 14.9  million (European Union)

 

Road repair: Ouaddai‑Biltine, USD 4.7  million (Germany)

 

Road paving: Kelo-Moundou/ USD 1.0 million (European Union)

 

Bridge construction: N’Djamena-Wahlia, USD 1.2 million for feasibility study. The construction estimates are unavailable. (Taiwan)

 

Road maintenance and paving: Sarh-Moundou-Lere, USD $4 million (European Union)

 

Ministry of Agriculture

‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑

Feasibility study for the development of spirulina/blue-green algae, 50.000 USD (African Development Bank)  

 

Livestock raising and irrigation: B.E.T. water wells (ONHPV)

USD 14.9  million (Caisse Francaise de Developpement)now (AFD)

 

Water wells for various villages (ONHPV), USD 13.3 million (Germany)

 

Water wells for B.E.T. villages: USD 1.3 million (CFD)

 

Ministry of Health

‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑

"Maternity without risks" project: USD 1.8 million (World Bank)

Health care projects aids projects: USD 2.0 million (World Bank)

 

Ministry of Interior (N'Djamena city council)

‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑

Rehabilitation of the "Marche de Mil" USD 7.8 million (CFD-AFD) )

 

Rehabilitation of the central market/Marché du Grande Mosquée

USD, 1.0 million (Saudi Arabia)

 

Ministries of Finance and Economy

‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑

Improvements in the manage of the economy, public financing, and 

 

Promoting the private sector, USD 3.0 African Development Bank (AfDB)

 

Other major projects

‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑

Improvement and development in education, transportation, public works sectors, USD, 8.3 million, World Bank.             

 

Private sector/oil: USD 3.5-4 billion, Esso/Chad (Exxon),         Shell and Elf; development of three major oil fields near          Kome and Doba and the construction of 1,000 km pipeline to         Kribi on the coast of Cameroon.

 

INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND

U.S. DEPARTMENT OF STATE, 1998.  ALL RIGHTS RESERVED OUTSIDE OF

THE UNITED STATES

 

<NREC>Chad08 Chad: Trade and Project Financing <A>=Chad

 

 

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CHAPTER VIII: TRADE AND PROJECT FINANCING

-----------------------------------------

 

1.   BANKING SYSTEM

     --------------

     Chad is a francophone nation belonging to the "Communaute Financiere Africaine" (CFA) zone francs.  A subdivision to the zone francs is the "Union Economique d'Afrique Centrale" (BEAC) with headquarters in Yaounde, Cameroon.  The currency is the CFA franc which converts to 100 FCFA = 1 FFr (French Franc) or $1.00 = approx. 600 FCFA (June 1998).

     The  commercial bank loan guarantee requirements are  severe and the cost of credit very high.  Local banking services, instruments and products are very limited.  Credit is short term and is granted to preferred, long established clients.  Resources reserved for the small entrepreneur are insufficient.

 

     Private enterprise is handicapped by the lack of medium to long term bank loans, and by the absence of other lending or financing institutions. Chad has no investment bank. 

 

     A financial market does not exist within the UDEAC framework.  However, a financial market is planned between the member countries of UDEAC (Cameroon, Central African Republic, Chad, Congo/Brazzaville, Gabon and Equatorial Guinea).

 

 

2.   FOREIGN EXCHANGE CONTROLS AFFECTING TRADES

     ------------------------------------------

     Unless prior authorization is obtained from the Ministry of Finance and Economy, movement of more than 500,000 CFA F, or US $833.00, (at 600 CFA F to 1.00 USD) is not permitted.  Exchange operations and capital movements of all kinds between Chad and foreign countries are subject to ministerial approval.  Chadians and foreigners can execute transactions through the major banks, the Central Bank and the postal administration.

 

     Investors, lenders, importers and exporters must submit a formal request to their banking authorities.  This request is transmitted to the Ministry of Finance and Economy.

 

     The free exchange of the CFA and foreign currency is guaranteed to certain financial/commercial operators.

 

     A certain number of financial and commercial individuals are authorized to have an account in foreign countries.

 

3.   GENERAL AVAILABILITY OF FINANCING

     ---------------------------------

     Financing is difficult to find in Chad.

 

4.   HOW TO FINANCE EXPORTS AND METHOD OF PAYMENT

     --------------------------------------------

     Financing can be obtained from the commercial banks for short to medium terms for the private sector.  Long term public sector financing is arranged through multilateral lending institutions, i.e., World Bank (IBRD), African Development Bank (AfDB), the Fonds Europeen de Development (FED), and the Islamic Development Bank as well as bilateral agreements with European, Middle Eastern and Asian nations, etc.  See Chapter VIII, Section 5.

 

5.   TYPES OF AVAILABLE EXPORT FINANCING AND INSURANCE

     -------------------------------------------------

     The private export financing sector can address the Overseas Private Investment Corporation (OPIC), a U.S. government agency based in Washington which offers U.S. exporters financing and insurance programs.  OPIC assists U.S. exports/business, considering overseas ventures with basic information concerning the business environment, economic activities, country profiles, industrial trends, infrastructure, natural resources, etc.  OPIC programs include loans, guarantees and insurance.  OPIC does not support any project in Chad at the moment.

 

     The Export-Import Bank (EximBank) of the United States has financed projects for U.S./Chadian ventures in the past.  Chad currently has ”Off Cover“ status with the EximBank. There are no

current EximBank projects in Chad. EximBank Tel:800-565-3945

 

     U.S. and Foreign Commercial Service district offices  are found in each state.  Regional Export Assistance Centers are located through out the U.S. 

 

 

6.   AVAILABILITY OF PROJECT FINANCING

     ----------------------------------

     The U.S. Trade and Development Agency, OPIC, EximBank, the World Bank, International Monetary Fund (IMF), the African Development Bank (AfDB), Banque de Developpement des Etats de l'Afrique Centrale (BDEAC), Banque Europeene d'Investissement (European Investment Bank), Islamic Development Bank, Fond Europeen pour le Developpement (FED), Arabic Fund for Economy and Social Development donors,  and other multilateral financial institutions as well as bilateral agreements, i.e., France, Germany, Taiwan, Egypt, Libya,  Switzerland, Saudi Arabia, European Union (1998 donors list)provide project financing.   Several non-government organizations (NGOs) offer project financing.

 

7.   TYPES OF PROJECTS RECEIVING FINANCING SUPPORT

     ---------------------------------------------

     The types of projects that are currently receiving financial support are for infrastructure, social, health, rural and agriculture development. In 1998 foreign donors, lending institutions and the Chadian government  will  contribute roughly USD 167.8 million and USD 8.9 million respectively towards 161 development projects.  Donors and lenders forecasts for development projects for the years 1999 and 2000 will amount to USD 232.8 million.     

 

8.   CHADIAN BANKS WITH CORRESPONDENT U.S. BANKING ARRANGEMENTS

     ----------------------------------------------------------

     Banque Tchadienne de Credits et de Depot (BTCD):

     (U.S.)  Citibank, New York (France) Citibank, Paris

     (Cote d'Ivoire) Citibank, Abidjan

 

     Banque Meridien BIAO Tchad (BMBT):

(U.S.) Bank of New York, Citibank, Paris and New York   

 

     Financial Bank Tchad:

     American Express Bank, Paris

     Citibank, New York - American Express Bank, New York

 

     Banque de Developpement du Tchad

     Citibank, New York

 

INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND

U.S. DEPARTMENT OF STATE, 1998.  ALL RIGHTS RESERVED OUTSIDE OF

THE UNITED STATES

 

<NREC>Chad09 Chad: Business Travel <A>=Chad

 

 

----------------------------

CHAPTER IX, BUSINESS TRAVEL

----------------------------

 

1.   BUSINESS CUSTOMS:

     -----------------

     French and Chadian Arabic are the official languages of Chad.  It is not easy to find competent English speakers. Business correspondence,  advertising materials, brochures, and advertising should be prepared in French. Business calls are generally conducted in French. When visiting Chad, it is wise to come prepared with corporate/business materials in French.  `Chadian Arabic translated material is not usually necessary.

     In general, business customs in Chad are similar to those in the United States and Europe.  Chadians generally wear business suits or traditional dress.  Tropical weight suits, jackets and pants are useful year round.

 

2.   TRAVEL ADVISORY AND ENTRY REQUIREMENTS:

     ---------------------------------------

     Health:  A valid U.S. passport and international health certificate indicating recent yellow fever and cholera immunizations are required for entry into Chad.  Inoculations against typhoid, tetanus, diphtheria, meningitis and hepatitis are recommended.  Preventative medicine against malaria is also strongly recommended.

 

     Entry Visas:  A visa is required for U.S. citizens.  The visa should be obtained prior to departure as it is virtually impossible to obtain one at the airport upon arrival.  U.S. visitors must notify and check in with the "Surete Nationale" or National Police at "Rue du Colonel Moll" within 72 hours after arrival.   Personal information required: two passport-size photos, a completed application form, a copy of a birth certificate and 600 CFAF for the fiscal stamps and the application fee. Travelers are advised to carry their passports at all time, since authorities often request proof of proper identification.  Long term visas (visa de long sejour) are also available with a validity for up to three years.

 

     There are Chadian embassies or consulates located in Cameroon, Central African Republic, Sudan, Libya, Nigeria, Niger, Benin, Algeria, Germany, Egypt, Ethiopia, Lebanon, France, Benelux, the EEC, Saudi Arabia, Taiwan, Congo, Democratic Republic of the Congo, Cote d'Ivoire, Italy, Russia, and the United States, which can also provide entry visas.  French embassies have the authority to issue visas to Chad in countries where there is no Chadian embassy. U.S. travelers can obtain tourist, business and diplomatic visas from the Embassy of the Republic of Chad, 2002 R Street, NW, Washington, D.C. 20009, Tel: (202) 462-4009. Fax: (202) 265-1937  

 

     Residence Permit:  A "Carte de Sejour," can be obtained from the Office of Visas at the Surete Nationale, Commissariat Central, rue du Colonel Moll, in N’Djamena. In order to obtain this permit one needs a valid passport with an issued long term visa.  A letter of recommendation from the employer representing the visitor is also needed The application should be submitted to the office of the Commissariat Central.  These documents can also be obtained in other cities in Chad from the respective Surete Nationale offices.    

     Work Permits:  The regulations for individuals seeking employment are still somewhat rigorous and bureaucratic.  The country places a strong emphasis on a "Chadians first" policy.  Jobs and recruitment of foreigners is controlled by the Ministry of the Civil Service's National Office for the Promotion of Employment (Office National pour la Promotion de l'Emploi or ONAPE).  Any contract between a foreign employee and an employer must be approved in advance by the ONAPE and the Ministry of Interior.

 

     The application for a work permit includes submission of a resume or curriculum vitae along with a copy of the applicant's passport and entry visa.  The applicant must also present previous work permits (if any), and proof of professional work experience.  Copies of all diplomas and certificates of professional studies are also required.

 

     Additional Entry Requirements: Articles such as clothing and other personal effects along with professional tools and devices, musical instruments, etc., may be allowed duty free entry for long term residents.  Foreigners wishing to import personal vehicles will usually face two alternatives:  (1) Those intending to stay for a determined length of time can obtain from the customs office Form D18 which allows for temporary admission of a vehicle for up to two years.  The vehicle will receive temporary transit tags along with an assigned validity date; the vehicle must then be re-exported at the end of the stipulated period.  (2) Those intending to stay in Chad for a longer period must present their vehicles to Customs.  Customs will determine the duty based on the invoice value or, in the absence of an invoice, the estimated value calculated by Customs office.  The Customs duty "Droit de Douanes" is payable based on the following duty schedule:  30%, TCA/NAT.  Type tax 15 pct, and 2 pct for "redevance" license fee.  Upon payment of the duties, the vehicle is inspected by the Bureau of Mines and receives a tag number.

 

 

 

3.   HOLIDAYS:

     ---------

                   January 1          New Year Day

                        March              (end of Ramadan) Aid-Al-Fitr (M)

                        April              Easter Monday

                        April              Aid-Al Adha (Tabaski) (M)

                        May 1              Labor Day

                        May 25             African Liberation Day

     July               Maouloud Al Nebi (M)

     August 11          Chadian Independence Day

                        November 1         All Saint's Day

     November 28        Proclamation of Chad Republic

                        December 1         Freedom and Democracy Day

     December 25        Christmas Day

 

     NB:  (M) - Muslim holidays.

 

     Since Muslim holidays vary from country to country and are based on the lunar calendar, business travelers may want to confirm the dates of the holidays before traveling.

 

4.   BUSINESS INFRASTRUCTURE:

     ------------------------

     Chad's infrastructure, including banks, commercial establishments, hotels and tourism facilities is limited. The telecommunication system is very basic. Development of retail, commercial, industrial and residential real estate has been slow.  There are six modest commercial banks with international connections, but no investment bank.  Supermarkets do not exist and fresh and frozen products are available only through small retail outlets. 

 

     Transportation:  Chad is a landlocked country.  The nearest port facility is in Douala, Cameroon, 1800 kms (over 1000 miles) from the capital of N'Djamena. The country has few paved roads, and overland transportation of goods to and from the coast of Cameroon is slow and difficult. There is one single lane bridge crossing the Chari and Logone Rivers from N'Djamena to Kousseri in Cameroon.  The construction of a new Chari River bridge is expected to get underway in late 1998. As there is no Chadian rail system, merchandise must be trucked overland to the Cameroonian rail head of Ngaoundere.  The alternative route is through Nigeria's Maiduguri rail junction which connects to Port Harcourt or Lagos.  There are ferry crossing points of the Logone River at Bongor and Lai in the South.

 

     Chad's system of roads is inadequate although major efforts are underway to improve the nation's main highway network.  Approximately 750 kms of paved roads are currently in use and an additional 400 kms are expected to be added by 1998.  The country has an estimated 25,000 kms of rural tracks or "pistes" which are generally not maintained.  There are also about 8000 kms of dirt roads and “pistes” which are irregularly maintained; only a portion of these can be considered all-weather and passable during the rainy season. 

 

     At present, only two paved roads link the Capital to the interior of the country , one to Djermaya, roughly 75 kilometers to the north-east and the other from N'Djamena to Guelendeng about 160 kms to the south.  These two-lane roads are good and well-maintained.

 

     The N'Djamena-Guelendeng-Bongor-Ere-Kelo-Moundou road is the country's most important as it connects several large urban centers.  The sections of Guelendeng-Bongor (85 kms), Bongor-Ere (88 kms), and the Ere-Kelo (50 kms) section is being paved.  These sections are in various stages of completion. 

 

     The road from N'Djamena to the Sudanese border (Djermaya-Massaguet-Ngoura-Bokoro) is being improved through financing from the Islamic Development Bank. The first section (N'Djamena-Djermaya) has been paved.  The section Djermaya-Massaguet will be paved in 1999, through financing from the African Development Bank. 

     The Sarh-Doba-Moundou-Lere road is considered essential for the transport of Chadian cotton, and the forthcoming Doba oil exploitation.  Three sections of the North-South axis connect to the Sarh-Doba-Moundou-Lere network and to Central African Republic's and Cameroon's road systems. Another vital road, the Moundou-Touboro (Cameroon)section, connects Chad to the NGaoundere rail terminal.

 

     The roads of the Guera, Salamat and Batha district are all in need of major improvement.  The Salamat region is one of the most important grain producing areas in Chad.  From June to November, grain makes its way with great difficulty from this region.  Heavy rainfall renders these roads nearly impassable. Recently, the Chadian Government decided to take serious action to resolve this problem.  The 253 kms section from Mongo to Am-Timan (the regional capital of the Salamat) now has priority construction status.  The section Mongo-Abou Deia (118 kms) has been constructed and was opened in 1997 as a standard  dirt road.  The axis Abou Deia-Am-Timan (135 kms)in the Guera-Salamat region has also been upgraded to a laterite constructed dirt road.  A road opening up the Batha prefecture, and the main city of Ati to Mongo (150 kms)is planned for 1999.  Plans to up-grade sections of the Abeche-Am-Timan-Sarh are currently under review. 

 

     No major road construction is currently planned for the Ouaddai-Biltine region.  The only activity of importance is a road maintenance project financed by the German Federal Republic for improvements between Abeche and Biltine.

 

     Air Transport: The country has 66 airports, with 29 paved runways.  Four are 1524 meters - 3017 meters long, and 23 are under 915 meters.  The remaining runways are unpaved, ranging from 915 meters to 3047 meters.  Many are not equipped with basic safety features and night-time landing facilities.  The N'Djamena Airport is modern but lacks standard travel comforts and facilities.  There are presently four weekly round-trip flights to Paris.  Air service is also available to and from Brazzaville, Abidjan, Dakar, Niamey, Douala, Yaounde, Bamako, Bangui, Lome, Khartoum, Addis Ababa,  Jeddah, and Abu-Dhabi.  The airport is run by the International Agency for Air Navigation Security in Africa (ASECNA - Agence pour la Securite de la Navigation Aerienne en Afrique).  

 

     It is recommended that a freight forwarder (transitaire) be used. STAT/SAGA and STV/SOCOPAO are the two major freight forwarding companies; in addition, these companies handle maritime, air, and overland freight.

 

     Language: French and Arabic are the official business languages of Chad.  The Sara language is common in the south.  There are more than 100 languages spoken in different parts of the country.

 

     Communications: The communications system is underdeveloped.  Telecommunications are handled by the l’ONPT (National Post Office and Telecommunications) and by the parastatal international telecommunication company, T.I.T. (Societe des Telecommunications Internationales du Tchad).  Chad's 7,100,000 inhabitants have access to approximately 7,500 telephone lines, or a telephone density ratio of 11 lines per 10,000 inhabitants. There is a 7 year wait for a telephone.  The current system is being modernized with an extension  capacity of 31,000 lines.  N'Djamena, which accounts for 9% of the Chadian population, represents 80% of installed lines for the entire country.  Updated telecommunications and services are planned to include subscribers in other major cities.  The T.I.T. services include telex, telegraph, Internet and facsimile services.  Additional communications applications are expected in the near future.  At the present time there is no mobile radio telephone, cellular and other wireless services available. A telecommunications reconstruction plan to liberalize and eventually privatize the telecommunications sector is currently being considered by the Chadian government.  The overall objective and priority is to meet the basic economic and social communication needs through advanced telecommunications services and development to the urban and rural areas by means of private investment and partnerships.  The government will be looking to build an efficient telecom network infrastructure using the latest telecommunication technologies, products, services and applications from the world’s leading manufacturers, suppliers and service providers. T.I.T.  international telephone rates are considered to be among the most expensive in the world.

 

     Housing:  Residential housing is generally of poor quality and in great demand.  Years of civil unrest and war have destroyed residential and business structures.  Rebuilding and restorations activities are slow.  Houses, villas, and apartments are limited and are below U.S./European norms and amenities. Part of the problem originates in the lack of construction materials and the high cost of energy. Most houses are made of mud brick. Chad has no cement factory or steel mill, and wood is expensive.

 

     Medical facilities, Health, Food, and Water:

 

     Medical facilities are extremely limited in Chad.  The doctor/patient ratio is 1.5 doctors per 100,000 people.  Trained specialists are lacking in all categories.  A few Chadian and French practitioners who own practices and clinics are:       

    

     Cabinet Medical le FIGUIER, Dr.A. Ousman, Tel:(235) 52-22-89

     Cabinet Medical, Dr. Pagel, Tel: (235) 52-36-80

     Cabinet Medical SAO, Dr. J. Nanadoumngar,:(235) 51-58-40

     Cabinet Medical L'ESPOIR, Dr. Djime Langtar Tel:(235)

      51-44-35

     Clinique PROVIDENCE, Dr. Djainbe Ngombaye Tel:(235) 51-33-75

 

     Some private clinics have surgical doctors, and there are some specialists in ob/gynecology, pediatrics, and cardiology.  Dentists can be found.

     Hospital sanitation is often lacking.  Bio-medical materials such as microscopes, X-ray equipment and instruments of all types are inadequate.  Some are defective and unusable due to lack of spare parts.

 

     Medicine is in short supply, or unavailable, including over-the-counter-type products.  U.S. medical insurance is not always valid.  Supplemental coverage, including medical air evacuation, sudden sickness and liability, is useful.  Medical treatment must be paid directly to doctors and/or hospitals/clinics.  Health information can be obtained from the Centers for Disease Control's international hotline (404) 332-4559.

 

 

 

     Some main pharmacies in N'djamena are:

 

     Pharmacie du CANAL, Ave.Charles De Gaulle,Tel:(235)52-42-25

     Pharmacie du CENTRE, Ave. Ch. De Gaulle Tel:(235)52-49-30

     Pharmacie de l'ETOILE, Ave. Ch. De Gaulle, Tel:

      (235) 52-51-29

     Pharmacie de LA FONTAINE, Ave. Felix Eboue, Tel:(235)

      51-62-79

 

     Pharmacies are open from 08:00-12:00 and from 16:00-20:30 Monday to Saturday.  On Sundays two pharmacies are always open in rotation somewhere in the city in case of emergencies (the "pharmacie de garde" system).  Sunday open pharmacy addresses are posted on every pharmacy door and in the newspapers.

 

     Visitors to Chad find the weather hot, particularly in the spring, summer and fall.  Increase liquid intake of boiled, filtered water .  Avoid alcoholic beverages and (for some) increase salt intake in food to replace what is lost in perspiration.  Avoid direct sun exposure without proper lotions and sun-screens.  Light-weight cotton clothing is recommended.  In the winter months, a light sweater or jacket may be necessary in the evenings.

 

     Because of the widespread existence of malaria in Chad, malaria prophylaxes are recommended.  Since chloroquine-resistent strains of malaria are carried by mosquitoes in this area, mefloquine/Larium is preferred by foreigners.  The local population does not use malaria prophylaxes, resulting in a high incidence of death and illness.  Cholera occurs annually, also diphtheria, chicken pox, typhoid, etc., but these are generally not as widespread as malaria. 

 

     Sexually transmitted diseases, including AIDS, are found among the population.  The official figure is these disease is 5 percent but the actual figure is  higher.

 

     Drinking water should be boiled and filtered.  Avoid ice and tap water in hotels, restaurants and homes unless you know the water has been treated.  Beer, bottled water, and soft drinks are safe.

 

     The food supply is generally safe, however precautions are advised. Avoid eating raw fruits, vegetables and salads unless peeled and/or properly washed and treated.  Meat is plentiful and excellent.  Imported dairy products such as milk, cream, cheese, butter, and yogurt are safe. Local dairy products are usually unpasteurized.

 

     Travel Insurance: Travelers are advised to check with their insurance companies prior to departure from the U.S. to assure coverage for travel abroad.  A number of U.S. companies provide liability, and medical evacuation services.  Two local companies that provide these service are:

 

STAR NATIONALE BP 914 Tel:(235) 51-42-2 / 51-56-77          Fax:(235) 52-56-77

 

     SMAC (Societe Mutuelle d’Assurances des Cadres) BP. 644, Tel:(235) 51-70-19 Fax:(235) 51-70-61

 

FAUGERE & JUTHEAU (les Assureurs Conseils Tchadiens), BP. 139 Tel:(235) 52-21-15, Fax:(23) 52-35-39.

 

     Hotels: The choices for hotels are limited.  Following is a list of N'Djamena hotels used by international travelers:

 

     Novotel LA TCHADIENNE, B.P. 109 Tel: (235) 52-43-12 / 52-45-25 Fax:(235) 52-59-43 / 52-43-97, Single room: USD 120, plus breakfast.                

 

Hotel du CHARI, BP. 118   Tel: (235) 52-39-56 / 52-53-50 Fax: (235) 52-22-61, Single room: USD 90.00 plus breakfast.

 

Hotel LA PALMERAIE, BP. 610 Tel: (235) 51-05-83, Single room:  USD 30.00 - 40.00.

 

AURORA Hotel, BP. 578  Tel: (235) 51-70-51 Single room: USD   20.00-30.00, plus breakfast.

 

Hotel LE CENTRAL, BP. 697 Tel: (235) 52-26-90 / 52-31-07 Fax:  (235) 52-43-70, Single room: USD 60.00, plus breakfast.

 

     Accommodations can be rated between 1-3 stars and are not comparable to most European/U.S. standards. The Hotel Chari and Novotel La Tchadienne are equipped with local and international television and swimming pools.  The others do not have pools.  Breakfast is not included in the room price.

 

     International Mail and Courier Service:    Airmail letters to the U.S. weighing up to 20 grams cost CFAF 500 for stamps.  Hotels sell post cards and stamps.

 

     There is no postal service to homes and businesses.  All mail is distributed to a post office box number or "Boite Postale."

 

Mail service departs N'Djamena to Europe and elsewhere three times per week.

 

     Express mail packages:  can be sent to the U.S. by:

 

     DHL: 0 - 500 grams, US $40.00; 500 grams - 1 Kg, US $100.00

EMS: 0 - 500 grams, US $45.00-$90.00; 500 grams -1 kg, US $95.00-$130.00

 

    (These are approximate prices and subject to change.)

 

     EMS office hours are: 7.00 - 12.00, 15.30 - 17.00, from Monday through Friday.  Saturday 7.00 - 12.00. Delivery days from N'Djamena to Paris and points beyond: Tuesday, Wednesday, Friday, and Saturday.

 

     Business Services: N'Djamena has a limited number of business services.  There are three international accounting and consulting firms (PRICE WATERHOUSE, ERNST & YOUNG, and COOPER-LYBRAND)(See Chapter 11) which offer fiscal, financial, investment and technical assistance. PRICE-WATERHOUSE (Fidafrica) publishes a guide for investors with  a quarterly information report of Chadian judicial, fiscal, and social issues. Several tax advisors to the local and French tax systems, architects, lawyers, engineers and service centers for office and computer repair and supplies are available.

 

     Schools: There is a small international  American curriculum school in N'Djamena.  There is an excellent French school (Maternelle-Terminal, or Kindergarten to 12th grade).  N’Djamena has a host of religious (Christian and Muslim) schools.

 

     Security: Crime is a problem in N'Djamena and in other major towns.  Recent government crackdowns on crime have diminished the frequency of purse snatching, petty theft, road blocks, road bandits, etc.  Crimes against foreigners are not common; however, there have been serious incidents from time to time.

 

     Armed insurgents opposed to the central government have almost disappeared except in certain border areas. Chad's northern provinces bordering Libya still remain sensitive;  travel to this area is still considered dangerous because of the presence of unexploded ordinance and land mines.  Overland travel after dark in any part of the country is discouraged due to the frequency of accidents caused by bad road conditions, poorly maintained vehicles, unlit bicycles, carts, people on foot and wandering herds of cattle, goats and sheep and other hazards.

 

     Crime appears to increase during times of political and economic instability.  The loss or theft of a U.S. passport should be reported to the U.S. embassy or consulate.

 

 

     Crime: Information concerning safety and security in the region can be obtained from "A Safe Trip Abroad" and "Tips for Travelers to Sub-Saharan Africa."  These pamphlets provide information on personal security and travel in general.  Both are available from the Superintendent of Documents at the U.S. Government Printing Office, Washington, DC  20402.

 

     Currency Exchange and Credit Cards:   The use of the CFAF is tied to the value of the French Franc (FF) at CFA F 100 to FF 1, giving Chad a stable currency.  The CFAF is not considered a fully convertible currency.  There is no limitation on the importations of foreign currency. The local banks can handle exchange operations, the movement of capital and international payment transactions.  Investors, borrowers, importers, and exporters, using certified agents, must submit to the Ministry of Finance requests for authorization each time a foreign transaction is required. 

 

     The free exchange of CFA and foreign currency is guaranteed to specific economic operators and designated overseas personnel.  The Ministry of Finance and Economy can permit certain operators to open foreign currency accounts abroad to enable payment in foreign currency.

 

     Major international credit cards are accepted by the major hotels, airlines, and some restaurants.  Most transactions are in cash.

      

     Some banks and  hotels change money, and accept travelers checks.  Travelers checks can not be purchased at all local banks. 

 

     Utilities / Electricity and Water:    The Chadian national electric and water company, STEE (Societe Tchadienne d'Eau et d'Electricite), is a government parastatal utility.  The government holds 81.28 percent, the remainder, 18.72 percent, is in the hands of the Caisse Francaise de Development.

    

     Electricity: Local rates are among the highest in the world which severely penalizes profitability in all sectors of the economy and serves as a deterrent to investment.

 

     All subscribers must pay a service deposit of US $400; this deposit is refundable upon termination of the contract, less any outstanding balance due. Customers receive a bill each month consisting of    fixed monthly rental fee of USD 0.75 for the meter and USD O.50 for the maintenance system. Usage fees based on variable consumption rates per kilowatt hour (approximately 16 cents for the first 500 KWH to an additional variable rate of 33 cents per kilowatt hour.  A corporate turn-over tax of 15% which is passed on to the consumer. There is no rural electrification development contribution or additional taxes. The average embassy/business person's electric bill per month in N'Djamena can exceed USD 1750.  The "peak, busy and off hour" variable rate system is not used.  If electrical service is required, the hook-up service charge is variable in relation to the building position and existing lines.  Costs range from about USD 300 for a 10-20 meter installation charge to USD 2,000 for 200 meters.

 

     Water: High usage consumers (companies, international organizations, embassies) are billed on a monthly basis, but for individual consumers bills are submitted bi-monthly.  A deposit of approximately USD 40.00 is required for initial service.  The rate is fixed at 20 m3 (cubic meters) at USD 0.20.  If water installation is required, the rate is based on a fixed tariff  which takes into consideration the location and importance of the site.  Connecting charges vary between USD 75.00 to USD 200.00.  There is a small bimonthly meter and  maintenance fee.

 

     Climate:  Chad has two tropical seasons -- one season of rain (June to October, with the most rain in August) and a dry season or  "saison seche" (November to May).  The annual precipitation  averages 1,000 mm, but varies in the two basic climactic zones (the Sahel and the Sahara).  The temperature ranges between 15 degrees C and 45+ degrees C.  April and May are usually the hottest months.

 

     GMT/Time: Chad is one hour ahead of GMT in the winter months, and two hours ahead in the summer.  Chad is the same time as France in the winter and one hour behind France in the summer.  Chad is six hours ahead of U.S. East Coast time in the winter and five hours ahead in the summer months.  Chad is situated between the 8th and the 24th degree latitude North and between the 14th and 24th degree longitude East.   

 

     Restaurants: The average price per meal in a good restaurant in N'Djamena is approximately 5,000/7,000 FCFA - USD 10.00 to USD 14.00, not including drinks, appetizers or desserts.  Restaurants are open for lunch generally from 11h00 to 14h00, and for dinner from 18h30-19h00 onward.  Prices range from simple dishes to international cuisine.  Tipping is at one's discretion; however, 10 percent is the standard under normal service conditions. Service included, "Service compris" is never included in the bill.

 

     The following restaurants are typically French with air-conditioned dining rooms, plus outdoor terraces.  There are no American restaurants, or franchised establishments.

 

     La TERRASSE: Restaurant and Bar.  Tel: (235) 52-27-39

Speciality: meat, fish and pizza dishes; French cuisine, lunch/dinner.  Closed: Monday.

 

     LE CENTRAL: Restaurant and Bar.  Tel: (235) 52-26-90

Speciality: meat, fish and pizza dishes; French cuisine, open for lunch/diner.  Closed: Monday.

 

     LE PELICAN: Restaurant, Tel: (235) 51-61-77

Speciality: African cuisine. No indoor dining room.  Meals are served in small "boukaros" or round huts.  Open every day.

 

     RESTAURANT DU VOG: Popular restaurant, Speciality: meat and

     pizza dishes. Closed Sunday. Tel:(235)52-30-72.

 

     LE N'DJAMENA: Restaurant, Tel/Fax: (235) 52-39-22

Popular French restaurant, French cuisine.  Business dinners and group arrangements available.  No outdoor terrace, dining room air-conditioned.  Closed Sunday.

 

     RESTAURANT HOTEL PALMERAIE: Tel:(235) 51-05-83

Speciality: grilled meat and fish on wood fire, outdoor garden. air-conditioned. Closed: Wednesday noon.

 

     LE SHANGHAI Restaurant: Speciality: Chinese cuisine.

     Tel(235) 52-38-40

    

IL SULTANO: Restaurant Speciality: Grilled meat and fish on   wood fire, outdoor garden, terrace. Closed Wednesday noon.  Tel: (235) 51-05-83

    

     LE DRAGON D'OR: Speciality: Chinese cuisine Tel:(235)

      52-60-28

 

The Hotel NOVOTEL LA TCHADIENNE and Hotel LE CHARI both have  indoor and outdoor pool side restaurants, reception and bar facilities. (See section for hotel telephone numbers.)

 

     Labor and Work Code Legislation:  Work to compile Chad's new labor code of 1996 was assisted by the World Bank, the l’Organisation Internationale du Travail (OIT), and the Bureau International du Travail (BIT).  The Code covers four aspects of work relations between the employer and employee and provides information concerning employee hiring/dismissal, suspension, modification, work conditions, social contracts, health, salaries, rights to labor organizations, etc.

 

     Several mandatory allowances are paid and include transportation, health indemnities, bonus, vacation. Social insurance of 7,500 FCFA fixed rate is applicable each quarter.

 

     Beyond the "SMIG" or minimum wage, there is a scale of approximate monthly salaries for the following occupations:

 

     -Worker/Laborer unskilled    USD  50.00

     -Worker/Laborer semi-skilled USD 100.00   

     -Worker/Laborer skilled      USD 350.00

     -Bilingual office worker          USD 450.00

     -Bilingual receptionist      USD 250.00

     -Secretary                   USD 365.00

     -Bilingual Accountant        USD 585.00

     -Guard                       USD 200.00

     -Cook                        USD 120.00

                                      -Maid, House keeper          USD     80.00

 

     The above figures are indications, and can vary from the job and the employer.  Chadian workers accumulate two days of paid vacation for each month of work.  A thirteenth month salary bonus is also paid.  

 

     Company taxes:  These taxes are applicable to all legally registered corporations and are imposed in the Chadian fiscal year from January 1 to December 31.  The rates are as follows: corporate profit tax 45 percent, rental properties income, built or unbuilt 25 percent.

 

     Employer and Employee charges: These rates are as follows:

     6 percent for family allocation, 2.5 percent for work-related accident/injuries, 6 percent workers compensation: (4 percent is carried by the employer and 2 percent by the employee).  The seniority bonus can range from 3 percent-30 percent and is based the on minimum salary of the worker's professional classification.  The bonus is calculated from 1 to 25 years service to the company.

 

     Personal income taxes:  These taxes are based on several variables and include deductions  on items such as the number of family dependents supported. Taxes are withheld by the employer.  The scale ranges from incomes starting at FCFA 300,000 to those making over FCFA 6,000,000. 

 

     Other taxes:  A "Taxe sur le Chiffre d'Affaire" (TCA), turnover tax of 15 percent is applied to all services and products manufactured locally or imported. A new tax the l’Impot General Liberatoire (IGL) was install on January 1, 1998 to collect taxes from the large informal sector.  The taxes represents 5 percent on the annual turnover. 

 

     Transportation in N'Djamena and the Suburbs:

 

     Transportation in and around N'Djamena is provided by pick-ups and mini-vans as well as by an adequate system of taxi sedans which ply the city.  Fares for short rides in bush taxis/mini-vans are approximately USD 0.20 cents.  Prices range from USD 2.00 for medium distances to USD 6.00 from downtown to the airport.  Reliable and reasonably priced taxis are yellow in color.  Buses are not recommended due to lack of safety and reliability.  There is no trolley or subway system.  Cars with a driver/chauffeur are available for rent at major hotels, such as the Novotel and the Chari.  

 

     There are no major safari tour operators in Chad, though the visits to game parks can be arranged.  Charter air service is available from air charter companies such as Air Affaire Chad, B.P. 526, Tel/Fax:(235) 52-06-20 and Rene J. Mary, B.P.740, N'Djamena, Tel/Fax:(235) 52-39-42.  Transportation  away from the capital is generally less reliable.  Buses, tractor trailer trucks and pickup truck  are the usual means of transport between N'Djamena, Sarh, Moundou, Lere, Mao, Abeche, Faya, Am-Timan etc.

 

     Bicycles and motorbikes are a common means of transportation by the local population in N'Djamena.  Bicycles can be rented in N'Djamena for USD 2.00 per day and motorbikes for USD 10.00 per day.

    

     Sports and Activities: Hotels permit non-guests to use their swimming pools for a small fee.  The Hotel Novotel La Tchadienne and Hotel du Chari charge about USD 3.00 per day.  Weekly, monthly and yearly membership fees are available.

 

     There are tennis courts at the Novotel, Hotel du Chari and the International Club near the French Air Base Kossei near Farcha.

 

     Horses can be hired at the "Club Hippique de Chagoua."  Camel riding is also available on week-ends.  The Club also provides tennis. There is a 9-hole golf course with sand fairways and greens. The course is not up to U.S. or European standards.

 

     Shopping: Shopping is found in the area around the Grand Mosquee and the Avenue Charles De Gaulle.  One can find restaurants, bars, food products, carpets, woven mats, hardware, fabric, jewelry, African artisan goods, wool rugs, beads, leather products, and wood carvings.  Women's groups sell embroidered fabrics, tablecloths, and other handmade goods. There are two government sponsored artisan centers, one next to the Novotel, La Tchadienne, which sells items from other African countries and the other near the French School. This center is the Centre Artisanal et Ecole des Arts Appliques. The Centre d'Apprentissage Manuel Feminin (CTIMAF) behind the Farcha Cemetery  sell handmade textile items.  The Mission de Kabalaye on Avenue Bokassa sells embroidery from Tibesti region.

 

     Places to Visit Near N’Djamena:

 

     Gaoui:  The best short visit from N'Djamena.  This picturesque village is known for its fine pottery, museum and hospitality.

 

     Linia market:  The attraction of this town is the vibrant Sunday morning market.  There are large numbers of donkeys and other animals for sale.  Colorful clothing, gum arabic, local spices such as ginger, foods, grains, mats, curdled sour milk, are all for sale.

 

     Douguia:  Located about 45 minutes north of N'Djamena towards Karal and Lake Chad, this resort offers a large swimming pool, restaurant, and comfortable overnight facilities in an attractive setting on the banks of the Chari River.  Elephant Rock is 30 minutes away from Douguia.  It offers opportunities for rock climbing and cave exploration.  A four-wheel drive vehicle is recommended.

 

     Lake Chad: The size of the lake varies considerably through out the year. The lake is full of reed beds, floating islands, and is visited in the winter months by migrating birds from Europe, Asia, and other parts of Africa.  The lake is home to the Buduma people who primarily fish the lake and to the Kotoko people who raise live stock and farm the lake region.    

 

     Logone Gana:  A Kotoko village with a population of several thousand people.  This fishing village on the Logone is walled with several two-story buildings in the traditional Kotoko style.

 

     Kousserie: Just on the other side of N'Djamena in Cameroon is the town of Kousserie.  There is a daily market, several small food/general stores, and fabric shops.  The market is small, but has a variety of imported items.

 

     Waza National Park:  A large northern Cameroon game park, not far from N'Djamena featuring elephants, giraffes, antelopes, gazelles, warthogs, lions, water fowl and many other varieties of birds. The "campement de Waza" is a hotel with a collection of small stone cottages arranged down the side of a hill offering a scenic restaurant/bar overlooking the park.

 

     The City of N'Djamena:  Formerly called Fort-Lamy, this hundred-year old former French colonial town has grown rapidly since independence in 1960.  The population is estimated at about 700,000.  The city was seriously damaged during the war with Libya and the political turmoil of the 1980's.  The town nevertheless has a few modern office buildings and a residential area with some paved streets.  Traditional "pot pot" huts line unlit and unpaved roads which lack drainage and sanitation.  Traffic in N'Djamena is characterized by poor law enforcement;  pedestrians, bicycles, a variety of vehicles, domestic animals, cows, sheep, and goats indiscriminately wander the streets.  The streets can be dangerous at night, and extreme cautioned should be exercised to avoid accidents.

 

     U.S. Embassy Assistance: The Commercial Section of the U.S. Embassy in Chad can provide some assistance and advice to visiting American businesses.  The U.S. Embassy is located on Ave. Felix Eboue, N'Djamena.  For specific names, addresses, telephone and fax numbers of U.S. and Chad contacts, refer to the appendix Section E, U.S. and Chad contacts.

    

     The Embassy of the Republic of Chad in the U.S. is located on 2002 R Street N.W.,Washington, D.C. 20009, Tel: (202) 462-4009, Fax: (202) 265-1937.  There is no Chad-U.S. Chamber of Commerce in Washington.  However, information on Chad can be found in many libraries. Country profile reports can be obtained off the  Internet.

 

5. TEMPORARY ENTRY OF GOODS:

   ------------------------

   Free entry is permitted of necessary wearing apparel, personal

effects, instruments and tools to include laptop computers, software, etc  which are used by the traveler for personal or professional use. 

 

   Some goods enter Chad duty free on a temporary basis.  Exceptions would include certain equipment used in the crude oil

sector such as seismic material, drilling, and pipeline construction machinery and materials.

 

6.   TYPICAL PRODUCT PRICING STRUCTURES:

     ----------------------------------

     The Chadian retail market is undeveloped, with a small manufacturing and service sector.  The determination of a selling price of a product is based on the importers or retailers wholesale  cost and prevailing retail selling prices. Distribution, intermediate agents’, and retailers’ margins are factors in the final selling price.  Prices do not appear to be influenced by protective or assisted measures.  Percentage markups are variable, but generally run 10-15 percent.  Most transactions are negotiable, as bargaining is the general rule.   

 

A guide for Business Representatives is available for sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402; tel: (202) 512-1800; fax: (202) 512-2250.  Business travelers to Chad seeking appointments with the U.S. Embassy N’Djamena officials should contact the commercial section

in advance. (The commercial section can be reached by telephone at (235) 51-70-09 / 51-62-11 / 51-77-59 / by fax at (235) 51-56-54). 

 

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<NREC>ChadA01 Chad: Country Data <A>=Chad

 

 

---------------------

CHAPTER X:  APPENDICES

----------------------

 

A: COUNTRY DATA:

 

  1. POPULATION: 7.100.000 (Estimated in 1998 by Chadian Ministry       ----------             of Plan (DSEED)

     -0 - 14 Years old   44%      Estimated in July 1995

     -15 - 64 Years old   54%              "         "

     -65 - and over        2%             "         "  

     -50% of the population is comprised of people 20 years old or younger.

-Life expectancy: 50.3 yrs average.(Men  47.0 yrs,  women  54.5) (estimate 1995).  Projection 2005 / 57.20 years.

    

     The population of Chad is spread over 1,284,600 km2. North-

south: over 1,700 Km.  East-West: 1,000 Km. Chad is the fifth largest African nation after Sudan, Algeria, Democratic Republic of Congo, and Libya. Chad is approximately three times the size of California.

 

  2. POPULATION GROWTH RATE:  2.4% estimate 1997.

     ----------------------

               Urban population  21%, rural 79%

     Population density is 4.9 inhabitants per one km2, second only to Libya in least population density.

     30% of the adult( 15 and older) population is literate.

               the working population was evaluated at 2,719,600 in 1995

               Birth rate 42/1000, death rate 20/1000 (estimated 1995)

               Infant mortality rate: 130 deaths/1000 in 1995.

               Data provided by different Chadian Authorities.

 

  3. RELIGION(S):

     -----------

Muslim, 50%; Christian, 20%; Indigenous beliefs and     Animists, 30%.

 

  4. GOVERNMENT SYSTEM:

     ------------------

     Chad is a republic. Once a colony of France, it gained independence on August 11, 1960.  It has a parliamentary system and separates the power of the executive, legislative and judicial branches of government.  Idriss Deby was elected President of Chad on June 9, 1996.  The country held parliamentary elections in February 1997. There are 125 elected members of the National Assembly.  The President of the National Assembly, General Wadal Abdelkader Kamougue, the head of URD party, is from Southern Chad.  The Prime Minister, Nassour Ouaidou Guelengdouksia,  is from the Mayo Kebbi district in the south.

 

5.   LANGUAGE:

     ---------

     More than 100 different languages and dialects are spoken.  French and Chadian Arabic are both official languages. Chadian Arabic is probably the most widely understood language and is often used in business.  French is spoken in the cities, towns and larger villages and is also the working language of the government.

 

6.   WORK WEEK:

     ---------

     For government offices: Monday through Thursday from 7.00 - 15.30, with a 30 minute break, and Friday from 7.00 to 12.00 with-out a 30-minute break.  The commercial work week varies but in general is from 7.30 to 12.30 and from 16.00 to 20.00. Offices close Friday afternoons during designated Muslim prayer time. Offices are closed on Sundays.

 

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<NREC>ChadA02 Chad: Domestic Economy <A>=Chad

 

 

B.  DOMESTIC ECONOMY: Expressed in USD except where indicated          otherwise.

 

                                  1996      1997     1998(proj)

   

   1. GDP (USD millions)              1,378     1,367    1,370

   2. GDP growth rate (%)           2.8       6.5      6.0

   3. GDP per capita               227       226      229       

   4. Government spend % GDP      24.0      23.0     20.0     

   5. Inflation rate (%)            8.0          6.0      3.5

   6. Unemployment %                 -         -        -

   7. Foreign exchange reserve      166       125       -

   8. Average exchange rate         509       583      600   

   9. Debt service ratio %          9.5       9.4       -            10. U.S. economic military/       n/a       9.2       -  

      economic assistance

      (USD millions)

    

     Published unemployment statistics are unavailable.

    

     Chadian government unemployment figures are not available. A small percentage of the economic active population is employed in the formal sector.  An estimated 80 percent work in subsistence farming and cattle raising.  A small number of people are salaried.  Many work in informal activities such as street vendors, traders, merchants and day laborers.

 

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<NREC>ChadA03 Chad: Trade <A>=Chad

 

 

C: TRADE: Expressed in USD millions except where indicated

           otherwise: 

                                  1996      1997     1998(proj) 

   

  1. Total Country Exports          230          250      270 

  2. Total Country Imports          256         250      250

  3. U.S. Exports                  3.8      n/a       -

  4. U.S. Imports                   5.6       n/a       -                  

Data provide by Chadian authorities, Direction de la Statistique des Etudes Economiques et Demographiques (DSEED)

     and U.S. trade data.

 

INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND

U.S. DEPARTMENT OF STATE, 1998.  ALL RIGHTS RESERVED OUTSIDE OF

THE UNITED STATES

 

<NREC>ChadA04 Chad: Investment Statistics <A>=Chad

 

 

D:  INVESTMENT STATISTICS:

 

     Chad like other Sahelian countries depends on direct foreign investments (DFI). It is estimated that DFI represents over 50% of the total capital in Chadian enterprises. France, due to its historic  ties to Chad, is a major investor. French investment is estimated to represent over one third of the total Chadian commercial capital.  French share of total of foreign investment

capital is estimated at between 50-60%  The line-up of investors includes: France, Benelux, Italy, Taiwan, U.S., Japan, Saudi-Arabia, and Libya. 

    

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<NREC>ChadA05 Chad: U.S. and Country Contacts <A>=Chad

 

 

-------------------------------------

CHAPTER XI: U.S. AND COUNTRY CONTACTS

-------------------------------------

 

1.  U.S. EMBASSY TRADE RELATED CONTACTS

    

     U.S. Embassy N'Djamena

     Commercial Section

     Dept. of State

     Washington, D.C. 20521-2410

     Tel: (235) 51-70-09 / 51-62-11 / 51-90-52 / 51-92-33

     Fax: (235) 51-56-54

 

     Ambassador: David C. Halsted

     Deputy Chief of Mission: Helen R. Meagher La Lime

     Economic and Commercial Officer: Peter X. Harding

    

 

 

     U.S. Embassy/mailing address:

     Ambassade des Etats-Unis d'Amerique

     Ave. Felix Eboue, B.P. 413

     N'Djamena, Tchad

     Tel: (235) 51-70-09 / 51-77-59 / 51-62-11 / 51-92-33

     Fax: (235) 51-56-54

 

2.   AMERICAN CHAMBER OF COMMERCE AND BILATERAL BUSINESS COUNCILS                          

     NOTE: There is no American Chamber of Commerce in Chad.

 

     Chambre de Commerce, de l'Industrie, de l'Agriculture, et de

     l’Artisanat

     Rue du Colonel Moll, B.P.458

     N’Djamena, Chad

     President Directeur General: Mahamat Adam Adji

     Directeur General: Mahamat Rahma Saleh

     Tel:(235)52-52-64/52-32-92  Fax:(235) 52-14-98 /51-76-92

 

     Conseil National du Patronat Tchadien (CNPT)

     Avenue Charles De Gaulle

    B.P. 134 or B.P. 604

     N’Djamena, Chad

     Tel: (235) 52-25-71

     Fax: (235) 52-25-71

     Secretaire General du CNPT: Dr. Nicole Froud

 

     Federation Nationale des Consultants du Tchad (FNCT)

     B.P. 4007

     N'Djamena, Chad

     Tel: (235) 51-87-98

     President: Jacques G. Golsala

 

     West African Enterprises Network (WAEN)

     B.P. 899

     N'Djamena, Chad

     Tel:(235) 51-33-16

     Fax:(235) 51-89-59 

     Contact: Mr. Khalil Djalal

 

3.   CHADIAN TRADE/INDUSTRIAL ASSOCIATIONS:

    

     Union des Transporteurs Tchadiens 

     B.P. 529

     N'Djamena, Chad

     Tel: (235) 51-45-27

 

 

 

     Groupement Professionnel de Transport Routiers Tchadien

     B.P. 326

     N'Djamena, Chad

     Tel: (235) 51-43-55 / 51-75-09

 

     Association pour la Defense des Droits des Consommateurs

     B.P. 1385

     N’Djamena, Chad    

 

     Cooperative Taxi  Transport sector

     B.P. 812

     N'Djamena, Chad

     Tel: (235) 51-43-16

 

     L'Ordre National des Medecins du Tchad

     B.P. 1296

     N'Djamena, Chad

     Tel: (235) 51-77-90

 

4.   CHADIAN GOVERNMENT OFFICES RELATED TO KEY SECTORS

 

     Ministry of Finance and Economy

     (Ministere des Finances et de l’Economie)

     B.P. 144,   N'Djamena, Chad

Contact person: Directeur de Programmations et Aides Exterieurs

     Tel: (235) 52-55-53 / 52-46-64     Fax: (235) 52-49-08

 

     Ministry of Agriculture

     (Ministere d’Agriculture)

     B.P. 441, N'Djamena, Chad

     Contact person: Directeur General

     Tel: (235) 52-21-48      Fax: (235) 52-51-19

 

     Ministry of Public Works, Urban Development, Transport and    Housing

     (Ministere des travaux Public, des Transport,de l’Habitat et  de l’Urbainisme) 

     B.P. 984, N'Djamena, Chad

     Contact person: Directeur General

     Tel: (235) 52-37-67

 

     Civil Aviation/ Agence Nationale des Activites Aeronautiques  du Tchad (ANAT)

     B.P. 96, N'Djamena, Chad

     Contact person: Mr. Hissein Mahmoud, Directeur General de          l'Aviation civil

     Tel: (235) 52-29-09 / 52-21-96  Fax: (235) 52-29-09

    

     A.S.E.C.N.A (African Agency for Air Navigation Security)

     B.P. 70, N'Djamena, Chad

     Contact person: Dr. Mahamat Guetti

     Tel: (235) 52-27-77      Fax: (235) 52-62-31

 

     Ministry of Post and Telecommunications

     (Ministere des Postes & Telecommunications)

     B.P. 154, N'Djamena, Chad

     Contact person: Mr. Alhoki Blamkakou Director General of the

     l’ONPT

     Tel:(235) 52-15-55  Fax:(235) 52-15-30

     E-Mail: dabye 2 intnet.td

    

     T.I.T. (International Telecommunication of Chad)

     B.P. 1132, N'Djamena, Chad

     Contact person: Mr. Alhoki Blamkakou co-Director              Tel: (235) 52-14-41   Fax: (235) 52-14-05 / 52-14-14

 

     Ministry of Industrial,Commercial,and trade Crafts Development

     (Ministere du Developpement Industriel, Commercial et de l’Artisanat)

     B.P. 458, N'Djamena, Chad

     Contact person: Mr. Baradine Oumar, Director of Trade

     Mr. Oumar A. Choukou,Director of Industry PME/PMI

     Tel: (235) 52-30-49  / 52-27-33   Fax: (235) 52-27-33

    

     Ministry of Mines, Energy, and Petroleum

     (Ministere des Mines, de l’Energie et du Petole)

     B.P. 94, N’Djamena, Chad

     Contact person: Mr Mahamat Nasser Hassane, Director of Petroleum.

     Tel: (235)52-38-50    Fax; (235) 52-25-65   

 

5.   CHADIAN MARKETING RESEARCH FIRMS

    

There are no Chadian market research firms.

 

6.   COMMERCIAL BANKS IN CHAD

    

     Banque de Developpement (BDT)

     B.P.19, N'Djamena, Chad,

     Tel: (235) 52-28-29 / 52-32-84 Fax: (235) 52-38-18

     Directeur General: Mr. Idriss Houtman  

 

     Financial Bank Tchad

     B.P. 804, Avenue Charles De Gaulle, N'Djamena, Chad

     Tel: (235) 52-33-89/52-26-60/52-26-62 Fax: (235) 52-29-05

     Directeur General: Mr. Thomas Wielezynski

    

     Banque Tchadienne de Credits et de Depots (BTCD)

     B.P. 461, 26 Rue Robert Levy, N'Djamena, Chad

     Tel: (235) 52-28-76/52-28-01/52-41-90 Fax: (235) 52-37-13

     Directeur General: Mr.Chemi Kogrimi 

      

     Banque Meridien BIAO Tchad (BMBT)

     B.P. 87, Avenue Charles De Gaulle, N'Djamena, Chad

     Tel: (235) 52-43-14/52-43-21/52-56-84  Fax: (235) 52-23-45

     Directeur General: Mr.Mahamat Farris

 

     Banque Commercial du Chari (BCC)

     B.P. 468, Avenue Charles De Gaulle, N'Djamena, Chad

     Tel: (235) 51-89-85 /51-89-58 /52-33-96  Fax: (235) 51-62-49

     Directeur General: Abdallah El Mogadmi

     NOTE: B.C.C. is the former Banque Tchado-Lybian

 

     Banque Agricole du Soudan au Tchad

     B.P. 1727, Ave. El Nimery, N’Djamena, Chad

     Tel: (235) 51-90-41 / 51-90-42  Fax: (235) 51-90-40

 

7.   MULTILATERAL DEVELOPMENT BANK OFFICES IN CHAD

 

     World Bank Chad

     B.P. 146, Ave. Charles De Gaulle

     N'Djamena, Chad

     Tel: (235) 52-32-47 / 52-33-60 / 52-20-14 / 51-59-62 Fax: (235) 52-44-84

    

     Banque des Etats de l'Afrique Centrale (BEAC)

     B.P. 50, Ave. Charles De Gaulle

     N'Djamena, Chad

     Tel:(235) 52-50-14 / 52-41-76 / 51-23-54 / 52-26-71 /52-28-39 Fax: (235) 51-44-87

 

     African Development Bank (AFDB)

     01 B.P. 1387,

     Abidjan 01, Cote d’Ivoire

     Tel: (225) 20-40-15 / 20-42-18  Fax: (225) 33-14-34

 

     International Finance Corporation (IFC)

     1850 I Street N.W.

     Washington D.C. 20433

     Small Business Development Division Sub Saharan Africa Department

     Tel: (202) 473 0398  Fax: (202) 676 9707

 

     International Finance Corporation (IFC)

     Douala Regional Office

     Tel: (237) 42-94-51   Fax:(237) 42-80-14

     Contact person: Mr. Mouhamadou Diop

 

8.   TPCC TRADE INFORMATION CENTER IN WASHINGTON

    

     1-800  USA Trade  1-800-872-8723

 

9.   U.S. DEPARTMENT OF STATE OFFICE OF THE COORDINATOR

     FOR BUSINESS AFFAIRS

 

     Tel: (202) 746-1625  Fax: (202) 647-3953

    

     The Commercial Service Abidjan

     U.S. Embassy Abidjan

     5, rue Jesse Owens, 01 B.P. 1712

     Abidjan 01, Cote d’Ivoire

     Tel: (225) 21-46-16     Fax: (225) 22-24-37

     Contact person: Mr. Frederic Gaynor, Regional Councilor

 

10.  U.S. DEPARTMENT OF COMMERCE MAC COUNTRY DESK OFFICER

    

     Philip Michelini / Office of Africa

     Tel: (202) 482-4388

     Fax: (202) 482-51-98

 

11.  U.S. DEPARTMENT OF AGRICULTURE, FOREIGN AGRICULTURAL

     SERVICE, TRADE ASSISTANCE AND PROMOTION OFFICE

    

     Tel: (202) 720-7420

 

     U.S. Department of Agriculture

     Foreign Agricultural Service

     Office of Agricultural Attaché

     U.S. Embassy Abidjan, Immeuble Tropique lll

     O1 B.P. 1712, Abidjan 01, Cote d’Ivoire

     Tel: (225) 21-09-79 / 21-39-96  Fax: (225) 21-25-38

     Contact person: Bruce Zanin, Regional Agricultural Attaché

 

12.  Overseas Private Investment Corporation (OPIC)

 

1100 New York Avenue, NW

Washington, D.C. 20527-0001

     Tel: (202) 336 8799

 

13.  INTERNATIONAL ACCOUNTING FIRMS PRESENT IN CHAD

 

     Price Waterhouse  (FIDAFRICA)

     Immmeuble CotonTchad

     B. P. 1116, N'Djamena, Chad

     Tel /Fax: (235) 52 38 96

     Contact person: Mr.Yann Queinnec

 

     Ernst and Young International (Helios Afrique)

     Cabinet Henry

     B.P. 324,  N’Djamena, Chad

     Tel/Fax: (235) 52 36 20

     Contact person: Mr. Patrick Vermeulen.

    

     Cooper-Lybrand  (Central Africa)

     B.P. 775, N'Djamena, Chad

     Tel: (235) 52 36 11 Fax: (235) 52 60 04

     Contact person: Mr. Francois Dissounga

 

14.  RADIO AND TELEVISION

 

     Radiodiffusion Nationale Tchadienne (RNT)

     B.P. 892 N'Djamena, Chad

     Tel: (235) 51-60-71

 

     Tele-Tchad (TVT) 

     B.P. 274, N'Djamena, Chad

     Tel: (235) 52-26-79  Fax: 9235) 52-29-23

     Director:  Ouroumadji Moussa Doungor

         

15.  WEEKLY PRESS

    

     Agence Tchadienne de Presse (ATP)

     B.P. 670, N'Djamena, Chad

     Tel: (235) 52-23-76 / 52-58-67

     Contact person: Director of publication, Hassan Cherif

    LE PROGRES

     B.P. 3055, N'Djamena, Chad

     Tel: (235) 51-55-86  Fax: (235) 51-07-56

     Contact person: Director of publication, Mahamat Hissene

 

     TCHAD CULTURE

     B.P. 907, N'Djamena, Chad

     Tex:(235) 51-54-32 / 51-71-42 Fax:(235) 51-91-50

     Contact person: Director of Publication, Albert Lorent                   

 

     N’DJAMENA-HEBDO   

     B.P. 760, N'Djamena, Chad                      

     Tel: (235) 51-53-14 Fax: (235) 52-14-98 / 52-14-98

     Contact person: Director of Publication, Yaldet Begoto Oulatar

    

     LE TEMPS

     B.P. 1333, N'Djamena, Chad

     Tel: (235) 51-70-28  Fax: (235) 51-70-28

     Contact person: Director of Publication, Nehemie Benoudjita

 

     CONTACT

     B.P. 42, N'Djamena, Chad

     Tel: (235) 51-70-67   Fax:(235)51-70-67 

    Contact person: Director of Publication Balla Bomebe

    

     L'OBSERVATEUR

     B.P. 2031, N'Djamena, Chad

     Tel: (235) 51-80-05  Fax: (235) 51-80-05

     Contact person: Director of Publication, Sy Koumbo Singa Gali

 

INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND

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<NREC>ChadA06 Chad: Available Market Research <A>=Chad

 

 

--------------------------------------------

CHAPTER XII:  MARKET RESEARCH AND TRADE EVENTS

---------------------------------------------- 

 

1.   MARKET RESEARCH

 

     International Market Insight (IMI) topics that have been filed by the Commercial Section in 1998 are as  follows:

  

     Chad taking Steps to Liberalize Post and Telecom Sectors.

International Invitation to Bid on a Road Construction And Asphalting  Project.

Joint Venture Mining Opportunity in Chad, Diamonds and Gold.

 

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<NREC>ChadA07 Chad: Trade Event Schedule <A>=Chad

 

 

2.   TRADE EVENT SCHEDULE

 

     There are no significant trade events schedule in Chad. 

 

     INTERNATIONAL BUYERS PROGRAM (IBP)

    

Information concerning these expositions "show time USA" can be obtained from the Commercial Service at:

 

     U.S. Embassy

     B.P. 413 N'Djamena, Chad

     Tel: (235) 51-70-09/51-90-52/51-62-11

     Fax: (235) 51-56-54

 

INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND

U.S. DEPARTMENT OF STATE, 1998.  ALL RIGHTS RESERVED OUTSIDE OF

THE UNITED STATES