Telecom penetration rates in all sectors – fixed, mobile and internet – are well below African averages. Chad finally gained access to international fibre bandwidth in 2012, but it still lacks a national backbone infrastructure to support efficient broadband services. However, the World Bank-funded Central African Backbone (CAB) project has made progress, and Chad is also party to a Trans-Saharan Backbone project which will link a fibre cable to Nigeria and Algeria. The Tchadian Office for Telecom Regulation (OTRT) is responsible for the regulation of the telecoms market in Tchad.
Chad’s landlocked location results in high transportation costs for imported goods and dependence on neighboring countries. Oil and agriculture are mainstays of Chad’s economy. Oil provides about 60% of export revenues, while cotton, cattle, livestock, and gum arabic provide the bulk of Chad’s non-oil export earnings. The services sector contributes about one-third of GDP and has attracted foreign investment mostly through telecommunications and banking.
Nearly all of Chad’s fuel is provided by one domestic refinery, and unanticipated shutdowns occasionally result in shortages. The country regulates the price of domestic fuel, providing an incentive for black market sales. Chad relies on foreign assistance and foreign capital for most of its public and private sector investment. Investment in Chad is difficult due to its limited infrastructure, lack of trained workers, extensive government bureaucracy, and corruption.
Although multinational partners, such as the African Development Bank, the EU, and the World Bank are likely to continue budget support in 2017, Chad is expected to remain at high debt risk, given its dependence on oil revenue and pressure to spend on subsidies and security