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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).
Source:
African Development Bank, 2009, Chad Country Strategy Paper 2010-2014 IMF, 2013, Country Report (Chad) Transparency International, 2013, Corruption Perception Index U.S. Department of State, 2013, Investment Climate Statement (Chad) World
Bank, 2011, Can OHADA Increase Legal Certainty in Africa? World Bank, 2013, Doing Business 2014 (Chad)
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The Business Environment: Doing Business |
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