The Chadian government has announced plans to introduce tax incentives aimed at encouraging investments in artificial intelligence (AI). This development is part of the 2027 finance bill, which was adopted by the Council of Ministers on Thursday, under the presidency of Head of State Mahamat Idriss Deby Itno. The bill outlines several fiscal and customs innovations, including measures to promote industrialization, transformation of livestock products, sports development, and the establishment of holding companies.
The proposed tax incentives for AI investments are part of Chad's broader economic strategy, which prioritizes digitalization and industrial transformation as key drivers of growth. According to the Council of Ministers' official report, the government aims to "encourage investments in the field of artificial intelligence," although details about the specific tax benefits, eligible companies, or conditions for eligibility have not been disclosed.
The 2027 finance bill projects total resources of 3,065 billion FCFA and expenditures of 3,002 billion FCFA, with an estimated economic growth rate of 7.3% in 2027, up from 6% in 2026. The bill also forecasts non-oil revenues to reach 1,307.991 billion FCFA in 2027, representing a 20% increase from 1,094.072 billion FCFA in 2026. This growth is expected to be driven in part by the digitalization of financial services.
The introduction of tax incentives for AI investments aligns with Chad's efforts to modernize its digital infrastructure and improve public financial management. The government plans to continue modernizing the digital systems of financial administrations to enhance tax revenue collection and public finance management.
The development of AI in Chad is also expected to contribute to the growth of the digital economy in Africa. According to a report, AI could generate 230 million digital jobs across the continent by 2035. The establishment of a General Directorate of Artificial Intelligence within the Ministry of Digital Technology is another step towards promoting AI development in the country.
While the proposed tax incentives for AI investments have been announced, further details about their implementation and scope remain to be clarified. The 2027 finance bill must still undergo the parliamentary adoption process before it comes into effect.
The Chadian government's efforts to promote AI investments and digitalization are part of a broader strategy to diversify the economy and reduce its dependence on oil revenues. The country's economic growth is expected to be driven by various sectors, including industry, agriculture, and services.
Key points
- Chad's government plans to introduce tax incentives to encourage investments in artificial intelligence as part of its 2027 finance bill.
- The proposed incentives are part of a broader strategy to promote digitalization and industrial transformation in the country.
- The 2027 finance bill projects an economic growth rate of 7.3% and a 20% increase in non-oil revenues.
