weighted score 2.7 · ten dimensions
Sourcing Attractiveness Index · ten dimensions
Chad
Labour cost, supply base depth, logistics infrastructure, trade access, and innovation scores for Chad as a sourcing destination.
Labour cost competitiveness
8
Among the lowest labour costs in Africa. Minimum wage ~USD 60/month. However, extremely low productivity and literacy (~22%) limit practical advantage to primary commodities.
Supply base depth
2
Negligible manufacturing sector. Economy dominated by subsistence agriculture and oil extraction. No industrial supply chains outside extractives.
Logistics & infrastructure
2
Landlocked, no railway. ~1% of roads paved. Power unreliable. Transit via Cameroon corridor adds 7-14 days and significant cost. Among the worst logistics globally.
Workforce skills
2
Literacy rate ~22%. Minimal STEM education. Skilled labour concentrated in N'Djamena. Large unskilled youth population. Critical workforce constraints.
Scalability
4
Oil sector has some scalability within existing pipeline capacity. Agricultural production (cotton, livestock) is scalable but constrained by climate, infrastructure, and conflict.
Ease of doing business
2
Consistently ranked among the most difficult business environments globally. Corruption pervasive (TI CPI 22). Military governance. Regulatory opacity.
Trade access & tariffs
2
EU EBA duty-free access. CEMAC membership. CFA franc euro peg. Beneficial terms but inability to utilise them due to limited export diversification.
Sustainability baseline
2
Lake Chad environmental crisis. Desertification advancing. Oil sector environmental governance weak. No meaningful ESG reporting infrastructure. Climate vulnerability extreme.
Innovation & IP
1
No formal R&D capacity. No patent activity. OAPI membership but IP enforcement negligible. Innovation ecosystem non-existent.
Quality standards
2
No functioning national standards body. ISO certification rare. Quality assurance depends entirely on buyer-imposed requirements. No independent testing infrastructure.
Labour & Cost Competitiveness
Labour & Cost Competitiveness
- Wage levels
- Chad has among the lowest labour costs in Africa. Minimum wage is approximately USD 60/month. However, labour productivity is extremely low, and skilled workers are scarce outside N'Djamena.
- Total cost of ownership
- Low wages are offset by extreme logistics costs (landlocked, poor road infrastructure), unreliable power supply, and limited supplier ecosystem. Total cost of ownership for manufactured goods is uncompetitive.
- Labour market dynamics
- Population ~18 million, growing rapidly. Youth bulge with limited formal employment opportunities. Literacy rate approximately 22% — among the lowest globally. Skilled labour availability is a critical constraint.
- Cost-sensitive categories
- Labour cost advantage is relevant only for primary agricultural products (cotton, livestock) and extractives (oil, artisanal mining) where production is inherently location-bound.
Supply Base & Infrastructure
Supply Base & Infrastructure
- Manufacturing breadth
- Negligible manufacturing sector. Economy dominated by subsistence agriculture (~50% of GDP), oil extraction, and livestock. No significant industrial supply chains exist.
- Infrastructure
- Landlocked with no railway. Road network is largely unpaved — approximately 1% of roads are paved. Power generation capacity is minimal and unreliable. Internet penetration below 15%.
- Oil infrastructure
- Chad-Cameroon pipeline (operational since 2003) is the primary oil export route. Doba basin oil fields operated by Esso consortium. Oil refinery at Djermaya (opened 2011) serves domestic fuel needs.
- Risk note
- Chad's infrastructure deficit is among the most severe globally. Any sourcing beyond primary commodities (oil, cotton, livestock) faces prohibitive logistics and infrastructure barriers.
Trade Access & Business Environment
Trade Access & Business Environment
- EU EBA
- Chad benefits from EU Everything But Arms — duty-free, quota-free access for all products except arms. Effective applied tariff approximately 3%. This is the most favourable EU trade preference tier.
- Regional integration
- Member of CEMAC (Central African Economic and Monetary Community). CFA franc pegged to the euro provides exchange rate stability. CEMAC common external tariff applies.
- Business environment
- World Bank Doing Business indicators consistently rank Chad among the most difficult business environments globally. Regulatory complexity, corruption, and institutional weakness create severe barriers.
- Investment climate
- Oil sector dominates FDI. Non-oil foreign investment is minimal. Political instability, governance weakness, and infrastructure constraints deter diversified investment.
Innovation, IP & Quality
Innovation, IP & Quality
- Innovation capacity
- Minimal formal R&D capacity. No significant patent activity. University system produces limited STEM graduates. Innovation ecosystem is effectively non-existent outside of mobile telephony adaptation.
- Quality standards
- No functioning national standards body with enforcement capacity. ISO certification is rare. Quality assurance for exports depends on buyer-imposed requirements, primarily in the oil sector.
- IP framework
- Member of OAPI (Organisation Africaine de la Propriété Intellectuelle). IP enforcement is negligible. Not a practical concern for most sourcing relationships given the commodity-dominated export profile.
- Digital infrastructure
- Internet penetration below 15%. Mobile phone penetration growing but digital services infrastructure is nascent. E-commerce and digital supply chain management tools are not widely available.