Standard & Poor’s (S&P) has reaffirmed Chad’s sovereign credit rating at B- with a stable outlook, a move that validates the government’s strategic economic plan, Tchad Connexion 2030. The rating agency’s decision underscores its confidence in the country’s economic resilience, driven by steady growth, controlled debt levels, and strong international support. The Ministry of Finance and Economy emphasized that this endorsement reflects the country’s progress and the effectiveness of ongoing reforms.
economic growth revised upward to 5.2%
Following a gradual recovery since 2023, Chad’s economy has continued to strengthen in 2025, buoyed by rising oil prices and a rebound in services. S&P highlights the country’s robust real GDP growth, forecasting a 5% expansion for the current year—an upgrade from its December 2024 projection of 3.6% annually through 2027.
The International Monetary Fund (IMF) also upgraded its growth outlook for Chad to 5.2% in December 2024, reflecting the economy’s resilience. Improved agricultural output and a revival in non-oil sectors have contributed to more diversified growth, though oil remains a key driver, accounting for a significant share of exports and public revenue. Agriculture and services, meanwhile, are boosting domestic demand.
debt levels remain manageable
Chad has made notable progress in reducing its debt burden after years of high vulnerabilities. Public debt is now estimated at 36% of GDP, a moderate level compared to regional peers. In 2022, Chad became the first country globally to use the G20’s Common Framework for restructuring its external debt.
Concessional debt now accounts for half of total debt, offering favorable repayment terms. This has restored fiscal flexibility, enhanced investor appeal, and enabled the implementation of key projects under Tchad Connexion 2030. The government continues to pursue prudent fiscal policies, ensuring debt sustainability while freeing up resources for investment and social spending.
boosting domestic revenue collection
Significant strides have been made in domestic revenue mobilization, a cornerstone of Chad’s economic reform agenda. The tax-to-GDP ratio, though still below regional averages, rose from 9.8% in 2022 to 13.1% in 2023, according to OECD data. This reflects efforts to broaden the tax base and improve revenue administration.
In 2025, non-oil revenues exceeded projections, supported by strong non-hydrocarbon activity and measures under the IMF program approved in July 2025, totaling $625.3 million. The digitization of public finances and enhanced governance have further improved collection efficiency.
The Ministry of Finance noted that S&P’s rating confirmation “strengthens Chad’s financial credibility and enhances its appeal to private investors while reinforcing confidence in the reform trajectory.”
Tchad Connexion 2030: unlocking economic potential
While S&P’s rating reflects progress, key challenges remain, including economic diversification, revenue mobilization, and maintaining sustainable debt levels. Infrastructure development is another priority, all embedded in the Tchad Connexion 2030 national development plan.
Adopted in May 2025 following the country’s political transition, the plan outlines a vision to lift 2.6 million citizens out of poverty by 2030 through an 8% annual growth target, expanding GDP by 60% over the period. To achieve this, Chad secured $20.5 billion in funding from public and private partners at the November 2025 Abu Dhabi conference.
The plan is structured around four pillars:
- strategic infrastructure development: power, water, roads, and telecommunications.
- social policy enhancement: education, healthcare, vocational training, youth employment, and social inclusion.
- economic diversification: expanding export-oriented sectors in agriculture, livestock, fisheries, hydrocarbons, mining, and tourism, with added-value processing encouraged.
- business climate improvement: streamlining administrative procedures.
