Chad's agriculture
Chad's agriculture is primarily rooted in a rural economy, where most of the population relies on farming for their livelihoods. The nation faces significant challenges, including widespread poverty, with approximately 42% of its population living below the poverty line as of 2018. Despite the discovery of oil reserves and a shift towards oil exports since 2003, agricultural development has not significantly improved, and the sector remains underdeveloped. Access to modern energy sources is limited, as fewer than 12% of the population had access to electricity by 2022, primarily concentrated in urban areas. Most residents resort to traditional energy sources like wood and animal manure, which affects agricultural productivity and sustainability. Chad's agricultural activities are further hindered by factors such as conflict, poor infrastructure, and economic instability. The country’s ongoing challenges highlight the resilience of its agricultural communities, even as they navigate difficult conditions. Overall, while Chad is rich in natural resources, its agricultural potential is constrained by systemic issues that need to be addressed for meaningful progress.
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Chad's agriculture
Official Name: Republic of Chad
Summary: Chad is a developing African nation with a largely rural and agricultural population mired in poverty with limited access to coal and hydropower.
Chad is ranked 189 out of 193 countries on the United Nations’ 2022 Human Development Index, with about 42 of its population living below the poverty line (2018). Although international corporations began exploring and drilling for oil in the 1970s, Chad remained a major oil importer until 2003. After 2003, oil emerged as one of the country’s leading exports. Chad has only limited coal and hydropower resources. Chad has begun to privatize its formerly state-controlled public utilities, but most residents outside of major urban areas lack access to electricity. Access is also limited due to a host of problems, including conflict, corruption and mismanagement, high costs, and poor infrastructure development and maintenance. Consequently, most residents rely on traditional energy sources such as wood. Recessions in 2016, 2020, and 2021 caused the economy to stumble even more severely.
Oil and Petroleum
Oil is Chad’s leading energy resource, both in terms of commercial supply and export production. Throughout much of its modern history, Chad had imported its oil and petroleum from Cameroon and Nigeria. International development of Chad’s oil resources since 2003 has resulted in the emergence of crude oil as one of the country’s leading exports, accounting for roughly 60 percent of export revenues. The main sources of financing include global corporations and international nongovernmental organizations such as the World Bank. The global oil corporations Conoco, Shell, Chevron, and ExxonMobil led oil exploration in Chad in the 1970s, locating small reserves in the Sedigi Basin to the north of Lake Chad estimated at approximately 438 million barrels. Meanwhile, Continental and Shell discovered oil in the Kanem region, also north of Lake Chad.
The discovery of significant oil reserves led to drilling projects. Oil wells in the Kanem region produced approximately 1,500 barrels per day before conflict in the region suspended operations in 1980. ExxonMobil explored and drilled wells in the southern region of Chad, such as the Doba Basin. Doba Basin drilling began under a 1996 agreement with the Chadian government. Oil reserves in Doba are estimated at approximately 900 million barrels. Also in southern Chad, ExxonMobil, Chevron, and Petronas are seeking to develop oil reserves of approximately 1 billion barrels. Other projects include construction of oil pipelines between the reserves in southern Chad and nearby Cameroon and between the reserves north of Lake Chad and a future refinery in N’Djamena. By 2023, crude oil production in Chad had reached approximately 141,000 barrels per day.
Electricity
Chad’s rural economy, its status as a developing nation, and a lack of energy infrastructure or resources has limited its population’s access to electricity. Fewer than 12 percent of the population had access as of 2022, the majority in urban areas. Many residents and small businesses who do have access to electric grids cannot afford the high cost of electricity. Most of Chad’s electricity (94.5 percent in 2022) was produced through the use of fossil fuels, as Chad lacked significant hydropower. Chad’s power plants are thermal, with most production taking place in the capital N’Djamena. Most rural residents, meaning the bulk of the population, instead rely on traditional fuel sources such as wood and animal manure.
Chad did not begin to develop its public utilities until the late 1980s and public utilities such as the Chad Water and Electric Society (Société Tchadienne d’Eau et d’Electricité or STEE) were mostly government-controlled. More recently, efforts have begun to privatize companies such as STEE. STEE supplies water and electricity only to major urban areas such as N’Djamena, Moundou, Sarh, and Abéché.
Mismanagement, corruption, limited access, outdated equipment, poor maintenance, and service disruptions were common and the utilities could not meet demand. Problems remained even after electricity production rates rose in the mid-1980s. Illegal connections to the electric grid also remained a problem. Long-lasting civil conflicts have resulted in infrastructure damage as well as service disruptions.
Bibliography
Central Intelligence Agency. “Chad.” The World Factbook, 24 July 2024, www.cia.gov/the-world-factbook/countries/chad/. Accessed 31 July 2024.
"Chad Economic Update: Harnessing Agriculture and Livestock Value Chains to Foster Economic Diversification and Increase Potential Growth." World Bank, 6 June 2022, www.worldbank.org/en/country/chad/publication/chad-economic-update-agriculture-livestock-value-chains-economic-diversification-growth. Accessed 31 July 2024.
Collelo, Thomas. Chad: A Country Study. 2nd ed. Washington, DC: Library of Congress and U.S. Government Printing Office.
Encyclopedia of the Nations. “Chad: Energy and Power.” www.nationsencyclopedia.com/Africa/Chad-ENERGY-AND-POWER.html#ixzz1EtstXVwK.
U.S. Energy Information Administration. “Chad.” www.eia.gov/international/overview/country/TCD. Accessed 31 July 2024.