N'Djamena: In a significant step to support Chad’s fragile economy, the Executive Board of the International Monetary Fund (IMF) has approved a $625 million loan program aimed at restoring fiscal stability, promoting sustainable growth, and driving infrastructure investment in the country. The decision, announced on Friday, includes an immediate disbursement of $38.5 million to the Chadian government.
This newly ratified four-year loan arrangement under the Extended Credit Facility (ECF) is a follow-up to negotiations concluded in May 2025. The funding package is intended to address the country's mounting economic difficulties, including falling oil revenues, inflationary pressures, a sharp drop in foreign aid, and the humanitarian burden of hosting tens of thousands of refugees from neighboring Sudan.
The IMF stated that the primary goals of the arrangement are to strengthen macroeconomic stability, enhance fiscal discipline, and improve domestic revenue collection, while simultaneously safeguarding and increasing social spending for vulnerable populations. The Chadian government has committed to key reforms, including expanding the tax base, improving public financial management, and boosting transparency in public institutions.
The program is also closely tied to Chad’s broader national development plan, which aims to mobilize nearly $30 billion in public and private investment by 2030. Priority areas for investment include transport infrastructure, energy systems, digital connectivity, and social welfare services. The IMF’s financial backing is expected to build confidence among international donors and private sector partners.
Chadian authorities, in coordination with the IMF, project that these reforms and capital injections could propel average annual economic growth to 8% in the coming years. Moreover, the country's public debt is forecast to remain below 32% of GDP, a level considered sustainable under IMF benchmarks. Maintaining these figures will be crucial to ensuring Chad remains on a stable fiscal path amid global uncertainties.
However, the country faces substantial challenges. Chad is one of the poorest nations in the world, and it has been severely affected by regional instability, climate shocks, and internal governance issues. The economic burden has been further compounded by hosting over half a million Sudanese refugees, many of whom are living in dire conditions amid growing humanitarian aid shortfalls.
The official launch of the economic support program is scheduled to take place in Abu Dhabi this September, during an international conference that is expected to rally further global and regional support for Chad’s development agenda. The event will bring together international financial institutions, donors, and private investors to coordinate financing and technical support.
IMF officials emphasized that the success of the program hinges not only on monetary support but also on the Chadian government's commitment to governance reforms and accountability in implementing the agreed policies. Transparent reporting and consistent monitoring by the IMF will be part of the process throughout the four-year duration.
The IMF’s approval of the $625 million loan is being seen as a critical lifeline for Chad at a time of economic vulnerability and geopolitical uncertainty. It offers a chance to reverse economic stagnation, rebuild public trust, and lay the groundwork for long-term development. Whether this opportunity translates into meaningful change will depend on effective execution, international cooperation, and the resilience of the Chadian people and leadership.