The Investment Charter

One of the reasons making the Republic of Chad a land of welcome for international investments, is without context, the incentive framework presented by the National Investment Charter, a major axis of the dynamic put in place to promote investments and make performing the economic fabric. The Charter provides actors, national and international private investors, with a view to improving the business environment, a framework that helps to remove the constraints that weigh on businesses. It is a framework for improving competitiveness, which contributes to deepening economic integration, thus perfectly meeting the requirements of the globalization of the economy, which should be explored here.

Main characteristics :

The particularity of the Investment Charter of the Republic of Chad is:

  • To ensure good public and private governance, with a view to better business transparency;

  • To promote lasting and equitable relations with transnational companies; 

  • To provide the SME / SMI with a legal and institutional environment favorable to its creation, development and sustainability; 

  • To create a legal framework that protects investors, as well as their assets. 

  • To create favorable conditions

In its presentation, The Investment Charter of the Republic of Chad is made up of two parts, the first of which covers general provisions and the second highlights the accompanying legal provisions.

General provisions:

Articles 1 and 2

The first two articles, which constitute general principles, highlight the legal and institutional framework conducive to the promotion of investments offered by the Charter, and reaffirm the firm commitment of the State to create conditions for economic and social development. based on transparency and generating confidence in the eyes of national and international private investors.

Articles 3 to 7 concern fundamental rights and guarantees relating to investments.

The Republic of Chad guarantees, subject to the legislative and regulatory provisions in force, the freedom in private investments in Chad, and the right of foreign investors to repatriate the capital representing the savings made by expatriate personnel (Article 3).

To promote lasting and equitable relations with transnational companies; 

  • To provide the SME / SMI with a legal and institutional environment favorable to its creation, development and sustainability; 

  • To create a legal framework that protects investors, as well as their assets. 

  • To create favorable conditions

In its presentation, The Investment Charter of the Republic of Chad is made up of two parts, the first of which covers general provisions and the second highlights the accompanying legal provisions.

General provisions:

Articles 1 and 2

The first two articles, which constitute general principles, highlight the legal and institutional framework conducive to the promotion of investments offered by the Charter, and reaffirm the firm commitment of the State to create conditions for economic and social development. based on transparency and generating confidence in the eyes of national and international private investors.

Articles 3 to 7 concern fundamental rights and guarantees relating to investments.

The Republic of Chad guarantees, subject to the legislative and regulatory provisions in force, the freedom in private investments in Chad, and the right of foreign investors to repatriate the capital representing the savings made by expatriate personnel (Article 3).

It guarantees the play of competition; the protection of patents, trademarks and all forms of intellectual property; pays particular attention to public and private vocational training, as well as skills development, and the need to make labor regulations flexible in accordance with international standards (Article 4).

The promotion of legal and judicial security and the strengthening of the rule of law are highlighted in Article 5, with the same treatment accorded to both domestic and foreign investors.

Chad has established basic jurisdictional frameworks that are highly attractive to private investors. It is bound in particular by bilateral and multilateral agreements on investment guarantees, settlement of investment disputes, as well as by conventions (New York Convention on the Recognition and Enforcement of International Arbitral Awards, concluded in 1958 under the auspices of the United Nations). The country has also adhered to the Community Court of Justice and to the OHADA treaty, to which it guarantees the application of the procedures and acts of the Court of Justice and Arbitration (Article 6).

The State regulates competition and guarantees private investors the possibility of participating in the financing of economic infrastructure through public service concessions (Article 7).

Articles 8 to 15 highlight the role of the State in economic and fiscal matters

These provisions highlight the favorable framework that the State is called upon to create in economic and fiscal matters in order to guarantee investments:

  • Good governance ;

  • Stable environment and appropriate legislation; 

  • Simplification of tax procedures; 

  • Reform of the financial sector in the direction of the mobilization of savings and the promotion of investment; 

  • Creation of a private guarantee fund.

Under the transitional and final provisions, the Charter grants companies approved under the regime of the former investment code (Law No. 25 / PR / 87 and Decree No. 496 / PR / 87) the right to retain the profits of various advantages and guarantees until the end of their approval, if this approval has not been revised within the framework of the tax and customs reform (Article 16).

The second part of the Charter constitutes a directory of support measures for businesses.

Private sector development measures, with an application period of five years and subject to modification taking into account the country's economic development (Article 17)

- Authorization for legally constituted companies to deduct from their taxable profits all sums involved in vocational training and job creation (Article 18)

- Temporary exemption on teaching materials and equipment imported within the framework of vocational training programs, during the execution of these programs, in accordance with the provisions of the UDEAC customs code (Article 19). The same applies to any establishment recognized by the State (Article 20)

- Exemption on the contribution of licenses to new legally constituted companies, during the period of their establishment, with the possibility of accelerated depreciation granted by the Ministry of Finance ( Article 23)

- Tax exemption on profits intended to be reinvested in the company under the control of the administration; and capital gains realized following a merger of companies (Article 28)

- Exemption from the registration fee on deeds of acquisition of land intended to house companies or allow their extension (Article 29). Article 30 grants the same privilege to contributions to a company, on the occasion of the constitution or increase of capital.

- Special advantages (tax credits and equipment premiums) for companies located in landlocked regions with difficult access to public services, such as energy, telecommunications and infrastructure (Article 21)

- Transfer guarantee capital (Article 25)

- Deduction of the tax base on Industrial and Commercial Profits to promote the restructuring of existing companies. This deduction is an amount equal to 25% of the normal depreciation over the financial year following this restructuring (Article 27).

For investment in certain priority sectors such as tourism and mining, it is planned, at the end of Article 30, specific texts specifying the technical, fiscal and financial conditions.

Good to know, it is expected (Article 36) that an investment promotion agency will be set up very soon, within which a Single Window will be housed, a structure that will facilitate the formalities of business creation for economic promoters. .

Through this framework, the Republic of Chad creates an environment conducive to national and international private investments, thereby positioning it as a crossroads in this matter.

RESEARCH PARTNERS

The return to peace, security and stability, conditions required for reconstruction and development, has enabled Chad to set in motion vast projects of reforms, both political, administrative and economic. Today, a lot of things have been achieved, and significant progress made in various sectors of the economy, not without the contribution of private investors, especially foreign investors, as can be seen from our light on those, many, successful in their visionary momentum. However, much remains to be done in the direction of the diversification of the economy. And faced with these major development challenges, there are many partners that the country should still seek out and attract in this permanent quest for growth. Some tracks.

Education, training and employment

Man being the key to development, everything must be designed and undertaken in line with his tools and perfection, in line with the requirements of globalization and the job market. However, this sector, particularly that of training, especially vocational, remains embryonic, with reception structures still far from absorbing the over-staffing of young people and other entrepreneurs in search of training. For the development of this sector, the contribution of external partners is essential.

The industrial fabric

Almost small sector, lacking industrial units. There is a real need to broaden the country's productive base to offer manufactured products to the sub-regional market and beyond. It is therefore necessary to develop the agrifood sector, and the products of agriculture, breeding and fishing, the country's main resources, offer enormous potential for this purpose that partners, foreign private investors, can exploit.

Energy

Economic progress remains dependent on energy resources. However, the only source in this field in Chad remains electricity, still a luxury for ordinary Chadians. Partners are needed to develop solar and wind energy, the promotion of which will benefit the forest, with a considerable increase in the population's access to energy.

Telecommunications

Telecommunications infrastructures are also far from meeting the country's needs. 9,000 telephone lines throughout the country in 1998, 83% of which in N'Djaména, the capital, and the rest distributed among 9 towns (source Document of the National Poverty Reduction Strategy, June 2004). This area, as well as that of mobile telephony (two operators, one of which is in the process of being installed) and new information and telecommunications technologies, present certain opportunities for potential partners.

The banking system and microfinance

The banking sector, made up of five commercial banks located in five cities in the country, needs to be strengthened. Also need to mobilize the system of domestic savings. Ecore a field of investments on which partners are expected.

The fabric of SMEs

SMEs play a preponderant role in economic development: job creation, increasing contribution to the formation of GDP, promotion of local products, local development, etc. But this fabric remains very small, and therefore open to partners who could mobilize capital for investments in this sector.

Tourism

The tourism sector (international tourism, business tourism, family tourism) constitutes a source of income to be developed. there is a lot to be done to provide the country with a welcoming infrastructure likely to attract visitors.

In short, the directory of partners sought is not exhaustive, and the country remains open to everyone, without exclusivity.

EXPORT: A MARKET OF THE FUTURE

Essentially an importing country due to its geographical isolation, Chad nevertheless abounds in undeniable export potential. The future looks promising as the integrated framework process has already started, a program whose main objective is to assist LDCs in identifying the main obstacles to the expansion of their trade and to provide them with coordinated technical assistance in order to eliminate these barriers.

The integrated framework process emanating from a tripartite, Government, Private Sector and Donors, will ultimately enable Chad to face up to opportunities to access new markets.

Thus, Chad will be able to considerably increase its various exports. Indeed, apart from cotton whose export in the raw state (cotton - seed and cotton fiber) faces unfair competition due to the subsidies granted to American cotton growers, the other products will easily have their way.

The main export products likely to experience increased potential include gum arabic and cattle.

With regard to gum arabic, of which Chad ranks second among producing countries just behind Sudan, the outlook is encouraging. Already, according to TRADEMAP data from 2003, Chad is ranked 4th world exporting country with a quantity of 9,670 tonnes, of which 4,721 tonnes are destined for the USA and 4,100 tonnes for France. Other countries like Germany, Mexico, Turkey, Taiwan, Japan etc. are also eyeing the Chadian supply side. It suffices quite simply to organize the sector well and to add value to this raw material so prized so that Chad can directly derive enormous profits from it because at the moment other countries are certainly exploiting this sector.

As for the cattle of which Chad can boast of being the leading producer in the CEMAC sub-region, it would suffice to control the marketing circuit which, for the time being, largely eludes trade statistics. Never mind, according to the French Development Agency, livestock exports in 2000 for example amounted to 68 billion CFA francs. The diagnostic study on trade integration (DTIS) carried out in the integrated framework and currently being validated, highlights the livestock sector as having strong export potential.

To these export products are also added peanuts, animal skins and cigarettes.

Chad exports mainly to Europe and in particular to Portugal, Germany and France which represented an average of 65% of exports in 2003. In addition to these countries, products of Chadian origin are sent to neighboring Nigeria, the Spain, Czechoslovakia and to a lesser extent Taiwan, Poland and Morocco.

It is also important not to lose sight of the fact that since October 2003, Chad has entered the circle of oil-exporting countries. Its production, which according to experts will last around 30 years, is estimated at 80 million barrels per year by 2009.

It is clear that the implementation of the integrated framework, which is on the horizon, will give more money. assets in Chad in terms of exports.

Chad, partner of the European Union and AGOA

The country, crowned with its entry into the circle of black gold producers, is doing everything to hook its wagon to the locomotive of globalization. America as much as Europe is an integral part of its aims

As of today, Chad is one of the seventeen (17) countries which, enjoying sufficient political stability in the eyes of the President of the United States, are eligible to benefit from AGOA, (African Growth and Opportunity Act). This law, in addition to promoting economic promotion and development on the old continent, also provides access to African businesses and investors.

Since Chad is eligible for AGOA, the State has undertaken actions to enable economic operators to benefit from it. Thus, through the Ministry of Trade, Industry and Handicrafts, a National AGOA Monitoring Committee, led by the Secretary General of the said ministry and comprising representatives of both public authorities and those of the private sector. , was established. This was followed by the establishment of a technical sub-committee to monitor AGOA and especially the establishment of an AGOA Resource Center (ARC) within the Chamber of Commerce with technical assistance from the 'Embassy of the United States in Chad.

In the opinion of the heads of WATH, Business Center in West Africa (including Chad and Cameroon), Chad is among the six (6) most dynamic CRAs. This is why he was selected to organize an AGOA day on August 24 at the Chamber of Commerce with the support of WATH and the US Embassy. This event is undoubtedly a forum where AGOA specialists and operators, experienced or potential exporters scrutinize the procedures and steps necessary to master in order to better penetrate the vast and complex American market.

Beyond this one-off action for which Abou FALL, coordinators of the 15 CRAs existing in Africa and Leah Quin, communications coordinator, both based in Accra, have made special visits, it is worth noting a clear desire to trade with the USA. To achieve this, further considerable efforts are being made to enable the business community to acquire the capacity to be competitive in the irreversible process of globalization. A synergy has been established and is being refined day by day between the public and private sectors in order to bring national companies to make use of Information and Communication Technologies, essential for international trade.

Thus, the subscription to TRADEMAP and PRODUCTMAP, two fabulous market analysis tools designed by the International Trade Center (ICC) and made available to Chad thanks to support from USAID, could be renewed. And the erection of a New Technologies Department within the Presidency of the Republic is a strong signal of the Government's commitment to popularize these competitive tools that were once out of reach.

With a view to the design and implementation of a coherent strategy obeying the vision of the International Trade Center, the authorities and the business community are working together. From this consultation will spring initiatives whose aim will be to no longer remain on the sidelines of globalization under any pretext.

The American and European markets should be penetrated as well as possible by Chadian economic operators. In this regard, the CEMAC / ST and EU partnership agreements, a process already underway, should also, at the end of the day, contribute to meeting the challenge of competitiveness at the national level.

Flowering of foreign companies in Chad

It is a notable fact that the companies that have established themselves in Chad are foreign or with foreign capital. Non-nationals are therefore legion to succeed in business in the country of Toumaï.

There is no need for statistics to note that in Chad, foreigners pass for the most knowledgeable businessmen. The Directorate of Economic Action of the Chamber of Commerce, which recently, in 2005, had a directory of companies established in Chad published, confirms this observation. According to the manager in charge of this direction, Renaud Dinguemnaial "the very first to have immediately perceived the scope of this work by subscribing to an insertion for its preparation were the foreign economic operators" This is not fortuitous but rather reflects the fact that the visionary foreigners who settled in Chad did not do it out of philanthropy, and even less out of the pleasure of living in the Cradle of Humanity. These foreigners who operate in key and dynamic sectors,

Who are they exactly, those, from elsewhere, who find their accounts by investing in Chad? First, there are the multinationals which, by virtue of their proven expertise on an international scale, are winning over the juicy markets relating to road infrastructure, one of the priority sectors financed thanks to the support of donors and the fallout from the windfall. petroleum. Indeed, SATOM and ARAB CONTRACTOR, French and Egyptian firms respectively, to name just these two, are currently working on the construction sites of the roads connecting the capital to the northern part of the country. Another promising niche, mobile telephony, is currently monopolized by AIRTEL but will soon have to face competition from another foreign company which is currently refining a strategy to enter the local market. Pierre CASTLE, this French magnate well known on the continent, has also taken over the brewing sector which recently saw the merger of Brasseries du Logone (BDL) and Boissons et Glacières du Tchad (BGT) into Brasseries du Tchad ( BDT). The Manufacture des Cigarettes du Tchad, a subsidiary of British Tobago, is one of the jewels of the Chadian industry.

The hotel sector, and especially catering, seems to be the prerogative of foreigners who excel there. Lebanese, French, Indians and Chinese happily share this market which has experienced a certain boom with the exploitation of oil. The opening of the Libyan hotel complex which overlooks N'djamena with its splendor, relieves congestion in this market, which is far from having reached its peak.

Nationals of the Central Africa sub-region are also successfully exploring the Chadian market. The meteoric rise of Foberd, a subsidiary of the Cameroonian group Fokou, and the hand almost placed on the Commercial Bank Chad and the Imprimerie du Tchad by another Cameroonian billionaire, Fotso Victor, are the perfect illustration of this.

According to the Directorate of Economic Action of the Chamber of Commerce, "many foreign investors are knocking on the doors of Chad and are waiting for the crucial energy problem to be resolved before they arrive". Aware of the challenges looming on the horizon, the consular institution, whose primary mission is to promote the private sector and which has seen its resources increase thanks to the invaluable assistance of the Head of State in person, is working daily to sell more the destination Chad.

CHAD AT THE HEART OF AFRICA AND CEMAC

A link between white Africa and black Africa, Chad can boast of being at the heart of the continent. Moreover, its recent awakening with on the one hand the advent of democracy and on the other hand the gigantic oil project, undeniably places Chad at the heart of profound changes.

Central Africa, formerly dependent on the economic weight of Cameroon and Gabon, has seen the emergence of Equatorial Guinea and especially Chad in recent years. The latter now has concrete arguments to play a leading role within the Economic and Monetary Community of Central Africa (CEMAC).

The economic improvement that Chad is experiencing with the exploitation of oil is hardly unrelated to the fact that within the Standing Conference of African and French Chambers of Commerce (CPCCAF) the country, through its consular institution, has recently seen at the Libreville meeting, her mandate as President of the Cemac Zone and Vice President of CPCCAF renewed for the next two years.

This recognition proves, if need be, that Chad currently enjoys a positive image capital within CEMAC and therefore on the continent. It is therefore right that the country strives to be more active in the various specialized institutions of CEMAC so that the sub-region develops active solidarity for the benefit of 30 million souls.

Chad already hosts the headquarters of various specialized institutions of CEMAC. These include the Economic Community of Cattle, Meat and Halieutic Resources (CEBEVHIRA) whose beautiful brand new building adjoins the building of the Ministry of Higher Education, the court of justice consisting of a judicial chamber and a Chamber of Accounts, and the Regional Pole of Applied Research in the Development of the Savannas of Central Africa (PRASAG) resulting from national agricultural research systems.

Anchoring in Central Africa does not prevent Chad, a landlocked country, from finding other outlets to the sea. In fact, in addition to the main transit port for goods both for export and for import that is Douala, other port spaces have been obtained thanks to the active involvement of the Head of State in person and are just waiting to be exploited. With this in mind, the Chamber of Commerce, which is responsible for their development, is working to find funding from donors for the construction of warehouses at the ports of Cotonou (Benin), Lomé (Togo), Moussarata ( Libya)

Beyond the port areas, Chad is inevitably establishing itself, more and more, as a pole of attraction. However, when asked to carry out or host numerous trade missions from and to the four corners of the continent, the consular institution is unfortunately still struggling to restructure itself in order to seize all these opportunities. And to remedy this situation in the near future, promoting the private sector is one of the government's priorities.

PRESENCE OF CHAD WITHIN AFRICAN INSTITUTIONS

Home of humanity, as attested by the recent scientific distinction in July 2002 represented by the discovery of Toumaï, "hope for peace", Chad, as if to confirm by premonition its status as the cradle of humanity, and therefore open to world, took a strong option from independence, to integrate international bodies, especially at the African regional level. He thus actively contributed to the creation of groups, both political and socio-economic. A presence on the international scene reinforced over the years and marked today by the authorities' firm desire to diversify relations with other African States, and to allow the country to be at the ankle with them in the frantic quest for peace and socioeconomic growth.

The entry of the Republic of Chad into African institutions dates back to the 1960s, when most of the countries in this region of the world gained international sovereignty. The starting point was the urgent need for unity on the continent with the creation of the OAU, Organization of African Unity. An institution to the founding of which Chad very actively contributed in 1963 in Addis Ababa in Ethiopia and, working for the development, until its mutation in 2003 (?), Thus becoming the African Union.

In the same vein, Chad participated in the efforts that led to the creation of OCAM, the African and Malagasy Common Organization of which it was a member. In terms of safety, particularly in the field of air transport, ASECNA, Agency for the Safety of Navigation in Africa and Madagascar, has registered, for its creation, the invaluable support of Chad, a member of this Organization to date. regional headquarters in Dakar, Senegal, and within which it remains well represented.

Food security is also the front on which Chad is present, through its support for the creation of the Inter-State Committee for the Fight against Drought in the Sahel (CILSS).

Following the creation of the OAU, noted above, Chad, at the sub-regional level, took a decisive part in the creation of the Customs and Economic Union of Central Africa (UDEAC), today hui replaced by the Economic and Monetary Community of Central Africa (CEMAC), institution of which it is depositary of all acts. Chad is also home to the headquarters of the specialized bodies of CEMAC: the Court of Justice; the regional center for research applied to the development of the savannas of Central Africa (Prasac); the Economic Community of Cattle, Meat and Fisheries Resources (Cebevirah). He is also represented at BDEAC (Central African Development Bank), an annex to CEMAC with headquarters in Brazzaville, Congo,

Another institution in which the Republic of Chad is represented, and at an equally important level, the Bank of Central African States (BEAC), with national representation, the very symbol of the Community in N'Djaména, the capital city.

In the recent past, in February 1998 in Tripoli, Libya, Chad's contribution was still decisive in the process of creating the Economic Community of Sahel-Saharan States (Cend-Sad), a group of more than one twenty African states whose country had to host a summit.

Chad is also a member of the Lake Chad Basin Commission (LCBC), which also includes Niger, Nigeria and Cameroon, and of which it houses its headquarters.

It should be noted that since the democratization of its institutions in 1990, and the return to all-round stability, Chad, through its very active diplomacy and its security instrument that is the Chadian National Army, has worked tirelessly for the consolidation of peace in Africa, thus further asserting its presence within African institutions. This is evidenced, on the one hand, by its involvement in the process of normalizing institutions and restoring peace in Sudan. And on the other hand, the sending of bodies specializing in the maintenance of security, in particular in Rwanda, the Democratic Republic of the Congo, and recently again in the Central African Republic.

We cannot fail to mention the twenty or so African conventions to which the country has subscribed, thereby strengthening its fight for full political and socioeconomic development on the continent.

Thus, the Republic of Chad, yesterday still considered a “nil state”, “country of war”, has today truly entered into the mysteries of African diplomacy, with a presence more than ever requested and expected in all areas.

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