Chad

Chad is a landlocked country at the heart of central Africa and is as vast as France, Germany and Poland taken together. The northern half of the country is in the Sahara region and is home to only 1% of the 9 million Chadians. Three-quarters of the population live in rural areas. In terms of human development indicators, the 2006 UNDP report ranks Chad 171st out of 177 countries. In Chad, 55% of the population – and 88% of women - are considered illiterate, life expectancy in the country is 50 years and the infant mortality rate is 12%. This poverty is perpetuated by cyclical and structural factors.

Although the oil fields in Doba became operational at the end of 2003 (170 000 barrels a day), Chad's economy depends mainly on the primary sector, which generates 40% of GNP and provides a livelihood for nearly 80% of the population, and on the service sector, which generates 37% of GDP and employs less than a quarter of the workforce. Chad's rate of economic growth (4.3% in real terms on average over the past three years) is still insufficient to lead to an improvement in the population's living conditions.

This economic and social stagnation is explained primarily by weak institutions and an almost non-existent rule of law, both of which deter private initiative. Although relative stability had prevailed in Chad since President Idriss Deby took office in 1990, armed rebellions have started up again in recent years against the backdrop of the crisis in Darfur and elections contested by the opposition. These events have led to an influx of 300 000 Sudanese and Central African refugees into Chad and the displacement of over 17 000 Chadians. Over 45 000 Chadians have sought refuge in Sudan (UNHCR/OCHA sources).

These tensions have not provided a favourable climate for the implementation of the National Poverty Reduction Strategy adopted in 2003 and accepted by the donors as the government's political and economic programme.

Against this background, the EU's strategy for the 10th EDF is to contribute to good governance and security in the country in order to encourage a sustainable economic growth cycle and poverty reduction. This strategy is built on a more "political" type of cooperation based on good governance (Article 8 of the Cotonou Agreement). It comes at a time of change for Chad (substantially increased oil revenue) and could act as a catalyst by directing these new resources to the promotion of growth. Development supported in this way should benefit first of all the poorest sections of the population, while at the same time addressing environmental challenges, in particular the sustainable management of natural resources. The strategy of the 10th EDF is consistent with the cooperation provided by the Member States active in Chad (France and Germany) and has undergone numerous and unceasing consultations and coordination. It is also based on an assessment of the situation shared by all the donors.

An indicative programme of €299 million was drawn up on the basis of these data.

The programme has two focal areas. The first priority of the 10th EDF is to support good governance in the areas of safety and legal certainty, public finance, the institutions and the democratic process, decentralisation, and more generally local governance.

With a view to supporting the main objective of poverty reduction and economic development, in particular by strengthening Chad's capacity for absorbing oil revenue, the 10th EDF's second priority is sustainable development, based on infrastructure and the rural sector.