Chad has approved new financing to expand its electricity sector, but authorities face a steep challenge as one of the world’s lowest electrification rates continues to weigh on development.
Lawmakers in the National Assembly of Chad ratified two loan agreements to fund the second phase of the country’s power sector reform programme, known as PASET-2.
The financing, secured from the OPEC Fund for International Development and the Green Climate Fund, is aimed at improving electricity access, strengthening the national grid and boosting reliability of supply.
The programme builds on an earlier phase launched in 2022 with support from the African Development Bank, which focused on increasing generation capacity and expanding distribution networks.
Despite these efforts, Chad continues to face a deep energy deficit. Only eleven percent of the population currently has access to electricity, according to official estimates, with stark disparities between urban and rural areas.
Access rates in cities stand at around twenty percent, while in rural regions they fall below one percent, highlighting the scale of the infrastructure gap in a country where the majority of the population lives outside urban centres.
Electricity consumption remains among the lowest in Central Africa, at just 47 kilowatt-hours per person per year—less than half the regional average—underscoring limited access and constrained economic activity.
The shortage persists despite significant untapped energy potential. Chad benefits from strong solar resources, with high levels of daily irradiation, as well as wind potential in northern regions and existing oil reserves.
Authorities say the new phase of reforms will focus on improving grid stability and extending access to underserved areas, with the broader goal of supporting economic growth and improving living standards.
The government has already launched several complementary initiatives, including rehabilitation of existing power plants, expansion of transmission and distribution infrastructure, and the introduction of hybrid systems combining thermal and renewable energy sources.
A separate project backed by the World Bank, valued at about US$295 million, aims to raise national electricity access to thirty percent by 2027.
Looking further ahead, Chad plans to mobilise around US$1.1 billion in investment to accelerate electrification, with a target of reaching sixty percent access by 2030.
Analysts say achieving those goals will require sustained financing, improved project execution and stronger institutional capacity, as well as greater involvement from private sector investors.
Energy access remains a critical constraint on development in Chad, affecting key sectors including healthcare, education, agriculture and industry.
Limited and unreliable electricity supply has also hindered business activity and discouraged investment, particularly outside major urban centres.
Across Africa, expanding access to electricity is seen as essential for economic transformation, with many countries turning to renewable energy and decentralised systems to bridge gaps more quickly.
For Chad, the challenge is particularly acute. While recent financing signals growing international support, the scale of the deficit means that progress is likely to be gradual.
The approval of new funding marks another step forward, but closing the gap between ambition and reality will remain a central test for the country’s development strategy in the years ahead.
