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After generous funding in Chad’s oil and road sectors amounting to $4 billion， Chinese investment in the Sahel country is poised to become one of the highest in Africa. The Sahel region， a vast swathe of land extending from the Sahara Desert in the north to the Sudanian grasslands in the south， has historically seen its eight countries suffer from instability， drought and food scarcity. But for the last five years， Chad’s economy has been growing by 5 percent annually.
Oil and agriculture drive the economy and China has invested heavily in oil exploration in the country， including the construction of oil pipelines. By the end of 2015， Chinese investments are expected to be about$6 billion， according to Harris Mule， former Chancellor of Kenyatta University and a development economist and policy analyst.
“Chad has long been hit by political instability， but now there is hope. Over the last few years， there has been economic growth in the Sahel country， making it very attractive for investors，” Mule told ChinAfrica.
Chinese companies have also invested in the iron and steel industry. This makes their investment and its impact on Chad’s employment situation very important.
The main obstacle for the economy was continued instability， Mule added. “Since 1960， after gaining independence from France， the country of 11 million people [was] hit by civil wars and external invasions. Now that is a thing of the past. From what we can see so far， political reforms are ongoing and the country will be stable.”
An oil pipeline is under construction in south Chad. When completed， the Chad-Cameroon Petroleum Development and Pipeline Project can transport 1.5 million barrels of oil to Cameroon， covering a distance of more than 1，070 km. It is one of the several projects China is undertaking in Chad.
China and Chad have signed an agreement to build a new international airport north of capital city N’Djamena. Chinese companies are also building new roads totaling about 5，000 km and in addition， they have been contracted to repair and upgrade roads damaged by decades of civil war. “Various Chinese companies will be contracted in the coming months，”Mule said. “Eleven major hospitals will also be built to [address] the prevailing health crisis in the country.”
More bilateral agreements await signing， such as the exploration of mineral resources and more oil reserves.
A recently inked pact between the Chinese Government and Chad involves sharing the rights to a vast oil and gas exploration project in south Chad， near the border with Sudan. The project will bring in new roads， water pipes and electricity， said Chad’s Ministry of Foreign Affairs.
Chadians too feel optimistic. “There is a lot of hope，”said Franco Harris， a resident of south Chad. “By the end of this year， 6-percent economic growth is expected.”
Still， it’s not going to be a bed of roses. “New laws have to be passed to enable further growth and the Constitution [has to be amended] to allow political reform. So far， all these issues are being worked on，” he added.
Idris Koma， another Chadian， said after a long civil war， Chad is now reinventing itself. People’s most fervent desire is that the country remains stable and corruption is crushed. “There are still a few obstacles but we hope they will be overcome，” he said.
The number of Chinese tourists is expected to rise over the next three years as Chad’s private sector plans to build several vacation resorts， Mule said， adding that some Chinese companies also plan to invest funds over the next four years to construct tourist hotels valued at almost $1 billion.
Oil and agriculture drive the economy and China has invested heavily in oil exploration in the country， including the construction of oil pipelines. By the end of 2015， Chinese investments are expected to be about$6 billion， according to Harris Mule， former Chancellor of Kenyatta University and a development economist and policy analyst.
“Chad has long been hit by political instability， but now there is hope. Over the last few years， there has been economic growth in the Sahel country， making it very attractive for investors，” Mule told ChinAfrica.
Chinese companies have also invested in the iron and steel industry. This makes their investment and its impact on Chad’s employment situation very important.
The main obstacle for the economy was continued instability， Mule added. “Since 1960， after gaining independence from France， the country of 11 million people [was] hit by civil wars and external invasions. Now that is a thing of the past. From what we can see so far， political reforms are ongoing and the country will be stable.”
An oil pipeline is under construction in south Chad. When completed， the Chad-Cameroon Petroleum Development and Pipeline Project can transport 1.5 million barrels of oil to Cameroon， covering a distance of more than 1，070 km. It is one of the several projects China is undertaking in Chad.
China and Chad have signed an agreement to build a new international airport north of capital city N’Djamena. Chinese companies are also building new roads totaling about 5，000 km and in addition， they have been contracted to repair and upgrade roads damaged by decades of civil war. “Various Chinese companies will be contracted in the coming months，”Mule said. “Eleven major hospitals will also be built to [address] the prevailing health crisis in the country.”
More bilateral agreements await signing， such as the exploration of mineral resources and more oil reserves.
A recently inked pact between the Chinese Government and Chad involves sharing the rights to a vast oil and gas exploration project in south Chad， near the border with Sudan. The project will bring in new roads， water pipes and electricity， said Chad’s Ministry of Foreign Affairs.
Chadians too feel optimistic. “There is a lot of hope，”said Franco Harris， a resident of south Chad. “By the end of this year， 6-percent economic growth is expected.”
Still， it’s not going to be a bed of roses. “New laws have to be passed to enable further growth and the Constitution [has to be amended] to allow political reform. So far， all these issues are being worked on，” he added.
Idris Koma， another Chadian， said after a long civil war， Chad is now reinventing itself. People’s most fervent desire is that the country remains stable and corruption is crushed. “There are still a few obstacles but we hope they will be overcome，” he said.
The number of Chinese tourists is expected to rise over the next three years as Chad’s private sector plans to build several vacation resorts， Mule said， adding that some Chinese companies also plan to invest funds over the next four years to construct tourist hotels valued at almost $1 billion.