Promoting SME Competitivenessin Chad Building business fundamentalsthrough digital adoption © International Trade Centre 2024 The International Trade Centre (ITC) is the joint agency ofthe World Trade Organization and the United Nations. Street address:ITC54-56, rue de Montbrillant1202 Geneva, SwitzerlandPostal address:ITCPalais des Nations1211 Geneva 10, SwitzerlandTelephone:+41-22 730 0111Fax:+41-22 733 4439E-mail:itcreg@intracen.orgInternet:http://www.intracen.org Promoting SME Competitivenessin Chad Building business fundamentalsthrough digital adoption About the paper Small and medium-sized enterprises (SMEs) are the backbone of Chad’s economy, and their competitiveness is essentialto build a diversified and competitive economy. Drawing from the International Trade Centre’s (ITC) SME Competitiveness Survey, this report reveals how efficientmanagement practices, collaboration and innovation can increase competitiveness and resilience among Chadian firms.Digital technologies are vital to reinforce many of these business fundamentals. The report recommends policy reforms to accelerate digitalization, improve access to finance, enhance skills matchingand provide better business support services. These steps are crucial to create an enabling environment where SMEscan thrive and strengthen Chad’s economy. Publisher:International Trade Centre (ITC) Title:Promoting SME Competitiveness in Chad: Building business fundamentals through digital adoption Publication date and place:Geneva, November 2024 Page count:74 ITC Document Number:SPTI-24-188.E Citation:International Trade Centre (2024).Promoting SME Competitiveness in Chad: Building business fundamentals through digital adoption. For more information, contact:Valentina Rollo, rollo@intracen.org For more information on SME Competitiveness Survey, see:https://intracen.org/resources/data-and-analysis/research-and-data ITC encourages the reprinting and translation of its publications to achieve wider dissemination. Short extracts of this paper may be freely reproduced,with due acknowledgement of the source. Permission should be requested for more extensive reproduction or translation. A copy of the reprintedor translated material should be sent to ITC. © International Trade Centre (ITC) ITC is the joint agency of the World Trade Organization and the United Nations. Foreword Small and medium-sized enterprises (SMEs) are the linchpin of Chad’s economic future, offering immense potential to drivegrowth, innovation and job creation. While the SME sector is still in the early stages of development, its success will beinstrumental to unleash the country’s full economic potential and foster inclusive prosperity in the long term. EmpoweringSMEs across various sectors will also ensure that Chad can reduce its dependence on oil, diversify its economic base,achieve greater economic stability, and create new growth opportunities. Aligned with Chad’s national development vision, the Government has made it a priority to ensure that small andmedium-sized enterprises have a conducive environment to operate, grow and compete. Its National Development Planand related policy initiatives have helped improve access to finance, promote entrepreneurship, and stimulate SMEgrowth in key sectors of the economy. Despite these efforts, SMEs in Chad continue to face significant challenges. To support them effectively, it is crucial tounderstand what their operating environment looks like, including the specific challenges they face, the factors influencingtheir success, and the opportunities they can use to their advantage. To this end, the International Trade Centre (ITC) and the Chamber of Commerce, Industry, Agriculture, Mines, and Craftsof Chad (CCIAMA) partnered to conduct a comprehensive assessment of SME competitiveness in the country. The SMECompetitiveness Survey, conducted in 2023 and 2024, gathered data from 601 businesses, providing valuable insightsinto their performance, challenges, and prospects, that form the basis of this report. This report delivers an in-depth analysis of SME competitiveness in Chad. It identifies key areas for improvement andoffers practical recommendations to enhance access to finance; strengthen technical and managerial skills, includingfor youth; and expand market opportunities. It also makes clear that the future of Chadian SMEs depends largely on theirability to thrive in an increasingly digitalized global economy—meaning their ability to connect to the internet, adopt digitaltechnologies, and innovate in their daily work will be paramount for success. ITC, the CCIAMA and the Ministry of Commerce and Industry share a common vision of bolstering SME competitivenessto ensure their success in domestic, regional, and global markets. When well-crafted and targeted policies are in place,trade can drive the structural transformation of the economy and contribute to poverty reduction, alongside other criticaleconomic, societal, and