N'DJAMENA, July 8, 2024 - Enhancing the economic inclusion of refugees necessitates acknowledging their economic contributions, according to the World Bank Chad Economic Update 2024, which dedicates a special chapter to examining the economic ramifications of refugee influxes.
The outbreak of the Sudanese crisis in April 2023 has led to a significant increase of refugee population in Chad, and this trend is expected to continue. As of December 2023, Chad was hosting 1.1 million refugees and asylum seekers.
Chad's economy has proven resilient despite the war in neighboring Sudan, although there have been spillover effects on trade, public expenditure, and inflation. GDP growth in 2023 is estimated at 4.1% (1% per capita). This growth is underpinned by oil production, which is estimated to have risen by 4.4%. Non-oil GDP is estimated to have grown by 4.1%, up from 2% the previous year, and driven by public investment. After recovering from the 2022 floods, the agricultural sector is estimated to contribute 1.6 percentage points (ppts) to growth, followed by the services and industry sectors. Public investment has been the main growth driver on the demand side, contributing 7 ppts to growth.
The Economic Update, titled "Hosting Refugees in an Inclusive Manner", aims to fuel public debate on recent economic developments and prospects for macroeconomic and social policies to promote growth and reduce poverty.
The economic inclusion of refugees can be enhanced through improved mobility, restoration of assets, and integrated productive inclusion strategies. Chad's authorities have adopted an open stance with respect to welcoming refugees, with a strong support for refugee's local integration as evidenced by Chad's Asylum law signed in 2023. The government's policy of refugee integration and dispersion also aims to reduce potential conflict hotspots and maximize economic inclusion benefits.
"Chad currently faces important challenges. In this difficult context, it is important to establish national safety net systems that promotes economic inclusion while being adaptive, productive, and tailored to the specificities of vulnerable populations including refugees and host communities, with a particular focus on women" declares Rasit Pertev, Country Manager for the World Bank in Chad.
The refugee response has been focused on covering humanitarian needs of refugees settled in large camps located in border areas. The influx of refugees has heightened food insecurity and strained basic services and natural resources. The integration of refugees into national systems and in the economy requires predictable, recurrent, and sustained donor funding, reports the authors.
"Strengthening social cohesion and avoiding further conflict, requires developing programs and reforms that benefit both host communities and refugees. Integrated policies should target host provinces, combining humanitarian and development efforts to support local development" adds Claudia Noumedem Temgoua, Country Economist at the World Bank.
Download the report: Chad Economic Update 2024 - Special Chapter: Hosting Refugees in an Inclusive Manner
