Planned urbanization critical for Chad’s industrialization and economic diversification

Abstract

A shortfall in the supply of energy, deficiencies in internal and external transport links, low digital connectivity, limited skills, poor access to finance and a difficult regulatory environment for businesses are hobbling the industrial productive potential of Chad’s urban areas. It is therefore incumbent on the Chadian Government to address these shortfalls while “increasing the supply of developed and serviced plots around large cities to curb unplanned informal development, creating special economic zones which combine access to infrastructure and instituting regulatory and administrative reforms to make it easier to operate industrial businesses” around urban spaces. The PDIDE framework aims to move Chad's economic growth rate from around -2% (in 2017) to more than 8% per year by 2030. Focusing on the construction sector would be vital for growth as Chad has huge gaps in the supply of urban housing in spite of construction constituting 20% of its GDP. As for the financing and coordination axis of the urbanization sub-strategy, the prescription is for Chad to improve the performance of its tax administration, pursue fiscal decentralization and enhance economic governance.