Chad Industry Sectors

 Chad industry sectors suffer from lack of infrastructure and potential markets. Being a landlocked country, Chad has low export volumes, which hampers industrial productivity. Agriculture is the primary source of employment for the Chad economy. It contributes almost 57.2% of the GDP.[br]

 Chad industry sectors suffer from lack of infrastructure and potential markets. Being a landlocked country, Chad has low export volumes, which hampers industrial productivity. Agriculture is the primary source of employment for the Chad economy. It contributes almost 57.2% of the GDP.[br]

Major Chad Industry Sectors

The underdeveloped Chad industry sectors are a repercussion of the ongoing humanitarian crisis caused by the civil war. Despite immense scope for capital revenues, political instability has chased away foreign investors. Agriculture and allied activities provide employment to almost 80% of the working population. However, a majority of the farming occurs at the subsistence level with archaic methods. Cotton production takes place on a large scale in Chad. Cotton is the most important cash crop and generates significant foreign currency for the country. Chad also exports livestock to its neighboring nations. However, a majority of the livestock trade goes unrecorded. Agricultural productivity is also low due to unfavorable environmental conditions and lack of proper technology. Due to the sub-Saharan influence, access to clean water is a common problem across Chad.

 

The manufacturing industry is largely agro-based. It provides for approximately 14% of the total GDP. Major manufacturing industries include cotton ginning, food processing, sugar and textiles.

 

According to the 2008 estimates, Chad produces 127,000 barrels of oil per day. The oil sector is relatively undeveloped in Chad. It has the potential to propel the nation’s economy towards development. The Doba oil basin is central to Chad’s oil sector. The development work at Doba basin is funded by the World Bank. Once it is fully operational, the Doba oil basin would produce 250,000 barrels per day. This would generate approximately US$100 million in revenues for the government. Chad has also planned to develop an oil refinery at the basin to produce refined petroleum products. Construction of the Chad-Cameroon oil pipeline is a major step in modernizing the oil sector in the country.[br]

 

Much like the oil sector, the mining sector is also underdeveloped in Chad. Geographical surveys predict significant reserves of gold, silver, uranium, bauxite and diamonds. In 1995, the country liberalized its economy to attract foreign investment in the mining sector. However, the sector continues to lack infrastructural and technological support.