The Jeune Initiative Économique du Tchad (JIET) recently hosted a conference in N'Djamena to discuss the role of Chad's informal economy in combating youth unemployment. Economists, bankers, entrepreneurs, and private sector actors gathered to highlight the significant impact of the informal sector on Chad's economy. According to estimates, only 170,000 out of 4.55 million jobs in Chad are in the formal sector, leaving a vast majority of workers in informal activities without contracts, social coverage, or retirement mechanisms.
The conference, themed "L'économie informelle, une réponse au chômage des jeunes au Tchad?", featured Amine Idriss, director of infrastructure at the African Union Development Agency (AUDA-NEPAD), and Edgard Djerassem, a banker and initiator of "Réussir Bégo". Idriss emphasized the need to distinguish between informal enterprises and informal jobs, which can also exist within legally constituted companies. Djerassem argued that the banking system fails to adapt to local economic realities, applying financing models that are poorly suited to small traders, artisans, and other informal sector actors.
Edgard Djerassem's analysis sparked reactions from representatives of the banking sector, who noted that nearly 940 billion FCFA circulate outside the banking circuit in Chad. They also highlighted regulatory constraints and the high level of non-performing loans, which hinder credit expansion. According to the banks, they have granted between 450 and 460 billion FCFA in credits to individual enterprises and individuals as of August 2026.
Conference participants called for policy reforms to better support informal sector actors. Proposed measures include simplifying business creation procedures, implementing the entrepreneur status provided for under OHADA law, adapting credit mechanisms to small economic activities, and developing digital solutions to facilitate identification and banking of operators. Amine Idriss also recommended improving access to public procurement for young entrepreneurs and women, as well as extending social protection to independent workers.
The role of digital technologies in supporting informal sector actors was also discussed. Narcisse Mvandim, a digital transformation specialist, highlighted the potential of digital tools to identify, organize, and support small entrepreneurs, drawing on experiences from other African countries. Participants also emphasized the need to address fiscal constraints, which can discourage formalization.
An entrepreneur shared her experience of difficulties encountered during the formalization process, including demands for tax payments and penalties while her establishment was still in the installation phase. Many participants argued that formalization can only succeed with a progressive approach, tailored to the capacities of small economic operators, and accompanied by incentive measures.
The JIET conference aimed to contribute to the reflection on solutions to youth unemployment and the transformation of Chad's informal economy. The debate highlighted the need for policymakers and financial institutions to recognize the economic weight of the informal sector and create conditions for its development, rather than simply regulating it. The informal economy already represents a major source of income for Chadian households, and its development could become a lever for sustainable growth and job creation.
Key points
- The informal economy accounts for a significant majority of jobs in Chad, with only 170,000 out of 4.55 million jobs in the formal sector.
