Trade Facilitation

Description

According to the World Bank Logistics Performance Index (LPI) (2012) which measures countries’ trade logistics efficiency, Chad was ranked 152ndout of 155 countries. All logistics indicators are significantly behind the averages of low income countries and further behind the Sub-Saharan African average (notwithstanding timeliness which is equal to the low income group average). Improved logistics are proving essential for enabling trade. As a landlocked country, N'Djamena, the capital of Chad is 1,700km far from the nearest port, Douala in Cameroon. The road network is the only viable means of transporting goods inside the country by accounting for 95 per cent of the transportation of goods and persons. Currently, in Chad, it needs 72 days and costs USD 6,615 to export and 31 days and USD 2,108 to import one standard container of goods. Compared to the regional average (31 days and USD 2,108 for export; and 38 days and USD 2,793 for import), trade in Chad is more time-consuming and costly (World Bank 2013). Inland transportation and handling is the key obstacle to trade as it takes up approximately 75 per cent of the cost and 38 per cent of the time. The poor road conditions such as road density vulnerable to changing weather produces extra transportation costs of over 30 per cent according to government estimates, while efforts to further integrate infrastructure with neighbouring countries in the region remain slow-moving. In line with the rising awareness of the important of infrastructure by the government, a number of new commercial activities and foreign investment projects including construction of new roads and bridges were launched in 2012 (U.S. Investment Climate Statement for Chad 2013).

Logistics Performance Index (LPI): Country Comparison
Source: World Bank, Logistics Performance Index (LPI)

Note: Wolrd Bank, 2012

Logistics Performance Index – Evolution
Source: World Bank, Logistics Performance Index (LPI)

Note: Wolrd Bank, 2012