Chad has reached a staff-level agreement with the International Monetary Fund (IMF) for a new four-year financial support package worth approximately $630 million.
The funding will be provided under the IMF’s Extended Credit Facility (ECF), the organisation announced on Thursday.
The request comes at a vital moment for the oil-dependent Central African country, which is working to implement its ambitious National Development Plan (NDP), Chad Connection 2030.
The plan is being pursued against the backdrop of falling global oil prices, declining foreign aid, and regional instability that are straining Chad’s public finances.
“Chad stands at a turning point in its history,” said Julien Reynaud, head of the IMF mission. “The NDP will be implemented in a challenging global context. Conflicts and instability in the region, along with declining oil prices and reduced public development aid financing, will place additional pressure on the country’s budgetary resources.”
According to IMF estimates, Chad’s economic growth slowed to 3.5% in 2024, down from 5% in 2023. Growth is projected to dip further to 3.3% in 2025 before gradually increasing over the medium term.
The financial programme will focus on fiscal consolidation, aiming to reduce the budget deficit from over 4% of GDP to an average of 1.5% during the programme’s duration.
The agreement remains subject to approval by the IMF’s Executive Board and will require the securing of necessary financing assurances from Chad’s partners.
