In Chad, the United Arab Emirates have just given much more than a boost to public finances. The government had the National Transitional Council validate a loan of $500 million, or more than 300 billion CFA francs, granted by the Abu Dhabi Fund for Development on Wednesday, October 16. This is the equivalent of 15% of the country’s 2024 budget; the finance law provides for a budget of slightly more than 2,000 billion FCFA. Financial conditions are very favorable according to the authorities, who promise significant investments. But some are worried about the future management of this windfall, and the rewards granted.
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Mahamat Idriss Deby’s last trip to the United Arab Emirates proved fruitful.
Ten days after the Head of State’s visit to Abu Dhabi, on his way back from the Francophonie summit, and his interview with the Sheikh Mohammed bin Zayed Al Nahyanthe Chadian government has had a considerable loan granted by its partner validated by the transitional Parliament.
300 billion CFA francs, for Chad, is the equivalent of 15% of the 2024 budget. A 14-year loan at an interest rate of 1%.
According to the calculation of the Minister of Finance Tahir Hamid Nguilinit’s as if 42% of the amount was directly given to the country. He also recalled that Chad is currently in low debt.
The transition parliamentarians overwhelmingly said yes: 150 votes for, 1 against and 3 abstentions. This does not prevent concerns; some are asking for guarantees on the use of this windfall.
Basic services, infrastructure… Finance Minister Tahir Hamid Nguilin has promised massive investments, in line with the electoral promises of Mahamat Idriss Déby in the presidential election last May.
The analyst at Sika Finances, Cédrick Jiongo, notes particularly favorable conditions for a country that “ generally not of much interest to investors ” And ” suffers high rates (5% minimum) for low subscriptions » on the regional capital market.
“ You would have to be naive to believe that there is no counterpart », remarks another observer.
Chad has been singled out by the media and the UN as a transit country for arms supplied by the Emirates to General Hemedti’s paramilitaries in Sudan. What the Chadian government has always vigorously denied.
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