2.2.1Annual revenue from
non-oil sectors
The economic base of the Republic of Chad has been
agriculture, for a long period of time (G. D. Gadom et al., 2018;
Hoinathy&Janszky, 2017; Limited et al., 2020). The main export product of
the country was also cotton and was also called as a principle agricultural
product. According to the research studies (Abubakar et al., 2018; Colombo,
Menna, & Tirelli, 2019; Njikam, 2016; Wegenast, Krauser, Strüver,
&Giesen, 2019), 60% of the export revenues of Chad are gained through the
petroleum sector. While the remaining 40% export revenue of the country are
through the agriculture, livestock and other industrial sectors (Cash, 2012;
Hoinathy&Jánszky, 2017; Malay, 2019; Nematchoua, Orosa, &
Reiter, 2019; Williams, Baek, Li, Park, & Zhao, 2017). It has also been
found that the services industry also has an important role to play in the
economic condition of the country. Research studies (Abubakar et al., 2018;
Colombo et al., 2019; Njikam, 2016; Wegenast et al., 2019) show that about one
third GDP of the country has found to attract the foreign investment. In 2017,
the annual revenue gained through the agriculture sector of the country is
around 1.3 billion.
2.3 GDP of Chad
The GDP of Chad is not completely dependent upon only a single
sector, but instead of that, the country has a mixed economic system (Baninla
et al., 2020; Chang, Chu, &Ranjbar, 2014; Hoinathy&Jánszky,
2017; Jerven, 2014; Nematchoua et al., 2019). Despite this, the major reliance
of the country is on the oil sector and upon its export. After the exploration
of oil fields in the country, the GDP dependence upon the agricultural crops
decreased (Abosedra, Arayssi, Ben Sita, &Mutshinda, 2019; Cash, 2012;
Malay, 2019;
Wegenast et al., 2019; Williams et al., 2017). The GDP of the
country, according to the (globaledge.com) shows that, 45% dependence of GDP is
on the agricultural sector, 38% is on the services sector and 14% on the
industries (Cash, 2012; Hoinathy&Jánszky, 2017; Williams et al.,
2017).
Table 2: Key economic facts of Chad.
|
GDP in 2018
|
$ 11.30 billion
|
|
Annual GDP growth
|
2.64% (2018)
|
|
% GDP value added by manufacturing sector
|
2.96 % (2016)
|
|
Labor force
|
6043,611 (2019)
|
|
Import of goods and services
|
$ 4.27 billion (2018)
|
|
Export of goods and services
|
$ 4.06 billion (2018)
|
2.4 Unemployment rate in
Chad
Literature studies show that the percentage of the workers of
Chad that are self-employed, are 74 % (Bown
& Freund, 2019; O. S. Mahmood & Ani, 2018; Nwanegbo,
Umara, & Ali, 2017; Onuoha & Moses Oyeyemi, 2019). In 2015, the
unemployment rate of Chad was 2.17 % that rose to 3.42 % in 2016. But in 2017,
the rate of unemployment was reduced to 2.20 % in 2017. This again increased in
next year and in
2018, the unemployment rate of Chadians was 2.23% (O. S.
Mahmood & Ani, 2018; Onuoha & Moses Oyeyemi, 2019; Profile, 2017). The
unemployment rate of the youth of Chad is also increasing with time. In 2014,
the unemployment rate of the youth of Chad was 3.9 % and it increased to 4.34 %
in 2016 (Cash, 2012; Hoinathy&Jánszky, 2017; Williams et al., 2017).
After several attempts made, the rate was reduced to 3.95% in 2017 and in 2017,
the unemployment rate of the youth of Chad was 3.96% (O. S. Mahmood & Ani,
2018; Onuoha & Moses Oyeyemi, 2019; Profile, 2017).
To deal with the unemployment rate, the governance of the
country has learned the importance of SMEs and therefore, has promoted it.
Research studies (O. S. Mahmood & Ani, 2018; Onuoha & Moses Oyeyemi,
2019; Profile, 2017) also show that the developmental strategies were made in
2005 in the country so that the unemployment could be reduced. These
developmental strategies focused on the promotion of small and medium
businesses (Bown& Freund, 2019; Nwanegbo et al., 2017; Onuoha & Moses
Oyeyemi, 2019). These measures were done in order to have a significant
contribution of small and medium sized businesses in the national economy
improvement and in reducing the unemployment rates of the country (Abubakar et
al., 2018; Colombo et al., 2019; Njikam, 2016; Wegenast et al., 2019).
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