Business Climate Improvement and Economic Diversification Support Project (PACADET)

Chad - Business Climate Improvement and Economic Diversification Support Project (PACADET) - Project Completion Report

PACADET’s objective is to promote private sector development and economic diversification in order to lay the foundation for inclusive economic development in Chad. Its operational objectives were to improve the business climate through two components: (i) Supporting public and private sector dialogue and investment climate reform; (ii) Supporting entrepreneurship and investment promotion. Given the Chadian economy's heavy dependence on the oil sector, diversification of the economy’s productive base through private sector development has been one of the country’s priorities. PACADET’s objective is all the more relevant since it focuses on strengthening the country's resilience to external shocks resulting from the volatility of international oil prices. That relevance is further enhanced by targeting the specific constraints the country intends to address in order to foster private-sector development in the medium term. These constraints include: (i) a weak legislative, institutional and regulatory framework; (ii) difficulties in accessing finance, particularly for SMEs; (iii) the weakness of supervisory private sector support structures; and (iv) the need to promote women's entrepreneurship. In this regard, PACADET is aligned with the objectives set by the Government in 2012, in consultation with the private sector and technical and financial partners, to implement business climate and economic diversification reforms with a view to boosting the resilience of the national economy. It should also be noted that PACADET is the outcome of the recommendations of a study conducted by the Bank, entitled "SMEs/SMIs in the Context of Diversification of the Chadian Economy".