Chad - Business Climate Improvement and Economic Diversification Support Project

The Business Climate Improvement and Economic Diversification Support Project (PACADET) is designed to promote private sector development and economic diversification in order to lay the groundwork for inclusive economic development in Chad. Indeed, The private sector remains poorly developed, characterized by a dual structure in which a few large firms coexist with a myriad of small businesses of the informal sector. Very small enterprises (VSEs) account for 91% of all enterprises, small-and medium-sized enterprises (SMEs) for about 3% and major enterprises, backed mainly by foreign capital, make up about 6%. The main challenges and constraints faced in promoting medium-and long-term development of the private sector are three fold : (i) weakness of the legislative, institutional and regulatory framework ; (ii) difficulties in accessing financing, especially for SMEs; and lastly (iii) weak supervisory and supportstructures. Several results are expected from the implementation in the short-term, like: (i) a reduction in the cost and time it takes to start a business; (ii) a reduction in the time it takes to issue land titles, etc. The total project cost is estimated at UA 5.89 million, of which UA 4.30 million will be in foreign exchange (73%) and UA 1.60 million in local currency (27%). The project consists of three components: (I) Support for public and private dialogue and reform of the investment climate; and (II) Support for entrepreneurship and investment promotion; a third component (III) is devoted to project management and coordination.