Chad

The World Bank Doing Business Report (2013) ranked Chad last out of 189 economies, with only the indicator in getting credit standing out as slightly better on the global scale (130th). Chadian economy is largely depending on subsistence agriculture, herding and fishing. The formulation of a vibrant business environment is hindered by limited public institutions and unwelcoming regulatory framework. Corruption is so widespread in various levels that the Transparency International ranked the 2013 Corruption Perceptions Index of Chad 163rd out of 177 countries. Moreover, there is a lack of confidence in the judiciary from the business community due to the lack of a sound legal and judicial framework to ensure fair treatment of lenders in legal disputes. Complex tax structures, sluggish progress in privatising state owned enterprises, and the long time to start a business (twice of the regional average) also aggravate businesses circumstances. The country put an effort to attract foreign investment has been made by, for example, offering three years of tax exemption for foreign companies establishing operations in Chad; undertook reforms of its Investment Code in accordance with the regulations of the CEMAC,and prepare measures to establish an investment and export promotion agency; and became a member of the Organization for the Harmonization of Business Law in Africa (OHADA), which aims to bring Chad’s business laws in line with other African member countries. Nevertheless, little progress took place due to the lack of implementation and existing and overwhelming obstacles (U.S. Department of State 2013; IMF 2013).