“We are one of the least indebted countries,” according to Minister Tahir Hamid Nguilin

On October 28, Standard & Poor’s (S&P) awarded Chad its first financial note. The country is rated B- with stable outlook, which places it at the same level as Cameroon, Uganda or Kenya. The Chadian Minister of Finance and Budget, Tahir Hamid Nguilin, explains the issues surrounding this rating, discusses his country’s latest discussions with the International Monetary Fund (IMF), and also discusses the implications of the security crises in Sudan and in the Lake Chad region, where a terrorist attack cost the lives of around forty soldiers.

Also readBoko Haram attack: civil society prepares an action plan to secure Lake Chad

RFI : Tahir Hamid Nguilin, why did Chad choose to be rated by the American agency Standard & Poor’s?

Tahir Hamid Nguilin : This is Chad’s first note. It allows us to have a more reliable basis for describing the situation of our country and our public finances, but also to be able to compare them with those of other States based on international standards. This will allow us to reassure investors, creditors, multilateral banks and, more broadly, all international financiers. It is a starting point for a set of steps that can be undertaken.

You hope to be able to raise funds more easily ?

Thanks to the rating, the debt issued by Chad will be more liquid, and therefore more easily mobilized by the banks and investors who hold it or wish to buy it. So obviously, this will allow us to raise more funding if necessary. All this within the framework of our national development plan which is being finalized.

Will Chad change its debt policy? ?

Our debt policy, for the most part, will not change. We are a country which mainly has concessional debt, that is to say with a low interest rate, which has become sustainable. This after efforts and a great commitment in terms of mobilization and digitalization of our revenue authorities, and greater control of our expenses. It is also thanks to the efforts that we have undertaken within the common framework of G20.

All this has enabled us to be rated B- with a stable outlook by Standard & Poor’s today. We must do everything to improve it by maintaining the pace of reforms, by further diversifying our economy, which is receiving more and more foreign direct investment. In area Cemacwe are the second receiving country in terms of foreign direct investment, and I think we can still improve.

S&P highlights your dependence on oil revenues…

Certainly, but S&P also notes that our revenues, due to a certain diversification, increased by 30% in 2021-2023. Our economy was essentially dominated by the primary sector (extractive industries and agriculture), but the weight of the secondary sector is becoming more significant. We also have efforts being implemented within the framework of industrialization, supported by the ramp-up of our electricity supply. Solar projects are being deployed.

Obviously, livestock farming also remains one of the major sectors of the future for Chad, with the development of special economic zones with Olam/Arise. There are a set of projects concerning camel milk, cow’s milk and meat exports. Slaughterhouses around Ndjamena and in the south of the country are already operational. And there is also a lot of value to be derived from gum arabic processing. It is a source of improvement in the income of farmers and breeders and a means of combating desertification. There are also efforts to be made on sesame, peanuts and cotton.

Also readIn Chad, the worrying surge in gum arabic prices

You are returning from the Annual Meetings in Washington. Are you planning a new program with the IMF? ?

Contrary to popular belief, we are one of the least indebted countries today. Essentially, these are concessional debts. The International Monetary Fund is one of our major partners and we agree on the essentials of its analyses, particularly on what Chad’s macroeconomic framework should be for the next three to four years. We will eventually discuss the establishment of a new, more robust program, undertaking reforms to improve the business climate, human capital, the diversification of our economy, but also the increase in our revenues.

The Lake Chad area was the site, a few days ago, of a deadly Boko Haram attack. What are the consequences of the presence of this terrorist group in the region?

All these years, Chad has found itself on the front line, and sometimes a little alone, in the face of this situation. But it is a global phenomenon. It’s becoming a bit of a forgotten area. The international community should take better care of it. The international community could do better and give much more in terms of diverse and multifaceted contributions. But also in terms of attention. This crisis is delaying the development of the lake region, and therefore of the country, because it is one of Chad’s assets. Until the 1980s, fishing represented the main source of revenue in the national budget. The lake must once again become an area of ​​prosperity.

Neighboring Sudan has been affected by intense conflict for more than a year. Is this crisis also penalizing your country?

One of the first impacts is the massive and continuous arrival of refugees, temporarily stopped by the rains. International agencies, the United Nations, the World Bank are intervening, but it is not enough. Only 30% of needs are covered. So this weighs on the country, on our ability to offer social services. The army is obliged to deploy, to be on alert, to protect our borders. These are unplanned expenses entirely financed by the Chadian budget.

Also readChad: UN High Commissioner for Refugees calls for accelerated funds in response to new influx of Sudanese refugees

Chad has just obtained a loan of 500 million dollars from the United Arab Emirates. How will this amount be used? ?

This loan is first of all budgetary support which supplements the support from our traditional partners which did not arrive because we were in the pre-electoral period. So it is a very concessional loan which will enter into the normal spending circuit. This will be used to finance investments in all sectors: health, education, higher education, opening up, the fight against flooding.

Chad and Niger want to relaunch the pipeline project between the two countries ?

It is a project discussed in complete sovereignty between Chad and Niger and which makes complete sense. For many, this is the ideal route. Currently, oil passes through the Benign. But don’t we need a second outing? It’s always good to have alternatives. In addition, Nigerien oil is only 20 kilometers from the Chadian border. This file is handled by the Ministry of Oil.

The former governor of the Bank of Central African States (BEAC), Chadian Mahamat Abbas Tolli, is Cemac’s official candidate for the presidency of the African Development Bank (ADB). But, it seems that Cameroon wants to present its own candidate…

No, we are not aware of the fact that Cameroon has nominated another candidate. Mahamat Abbas Tolli is the candidate of Cemac, he is the candidate of Chad, Cameroon and all the other countries in the region.

There is therefore no disagreement within the region ?

We don’t know about it. Maybe there are people trying to place a candidate, it’s human, but Cameroon and Chad have always voted together.